Home Loan EMI Calculator
Enter the loan amount, tenure, annual interest rate and processing fee to find the monthly EMI, the total interest, the loan fees and the total payments.
Updated
About the Home Loan EMI Calculator
Our Home Loan EMI Calculator works out your monthly instalment, the total interest, the processing fee and the total repayment in one go. Enter the loan amount, the tenure in years and months, the annual interest rate and, if you like, the processing fee. It is made for first-time home buyers, property investors and anyone comparing loan offers.
Quick answer
A home loan of 2,500,000 (25 lakh) over 20 years at 7.5% has an EMI of 20,139.83 a month. Over 240 months you pay 2,333,559.16 of interest on top of the principal.
- Formula: EMI = P × R × (1 + R)N ÷ ((1 + R)N − 1).
- R: the monthly rate, annual rate ÷ 12 ÷ 100.
- N: the tenure in months, so 20 years is 240.
- Processing fee: a one-off percentage of the loan amount, added to the total.
What Is an EMI?
EMI stands for equated monthly instalment. It is the fixed amount you pay your bank or lender every month until the loan is fully repaid. Each EMI has two parts:
- Principal: a part of the original amount you borrowed.
- Interest: the lender's charge for the money still owed.
Over the tenure the interest part gets smaller and the principal part gets larger, but the EMI itself stays the same.
EMI Formula
÷ ((1 + R)N − 1)
- P
- Loan amount (principal).
- R
- Monthly interest rate: annual rate ÷ 12 ÷ 100.
- N
- Total number of monthly instalments: the tenure in months.
Loan fees = P × Fee % ÷ 100
Total payments = P + Interest
+ Loan fees
With a 0% rate the EMI is simply P ÷ N.
How to Calculate a Home Loan EMI
You borrow 2,500,000 (25 lakh) for 20 years at 7.5% a year, with a 0.5% processing fee:
N = 20 × 12 = 240
(1.00625)240 = 4.460817
P × R = 15,625
EMI = 15,625 × 4.460817
÷ 3.460817 = 20,139.83
- Find the monthly rate. Divide the annual rate by 12 and by 100: 0.00625.
- Find the number of instalments. Multiply the years by 12 and add any extra months: 240.
- Raise to the power. (1 + R)N = 1.00625240 = 4.460817.
- Apply the formula. 15,625 × 4.460817 ÷ (4.460817 − 1) = 20,139.83 a month.
− 2,500,000 = 2,333,559.16
Fee = 2,500,000 × 0.5% = 12,500
Total = 2,500,000
+ 2,333,559.16 + 12,500
= 4,846,059.16
The totals use the unrounded EMI, so they can differ by a small amount from the rounded EMI times 240. The split of each EMI changes over time:
| Month | Interest | Principal |
|---|---|---|
| 1 | 15,625.00 | 4,514.83 |
| 2 | 15,596.78 | 4,543.05 |
| 120 | 10,663.44 | 9,476.39 |
| 240 | 125.09 | 20,014.74 |
EMI Calculation Examples
| Loan | Result |
|---|---|
| 50,000 10 years 6 months 8%, fee 0.4% | EMI 587.80 Interest 24,063.06 Fee 200 Total 74,263.06 |
| 1,000,000 (10 lakh) 15 years 7.5%, fee 1% | EMI 9,270.12 Interest 668,622.25 Fee 10,000 Total 1,678,622.25 |
| 2,500,000 (25 lakh) 20 years 8%, no fee | EMI 20,911.00 Interest 2,518,640.41 Total 5,018,640.41 |
- In the first example you pay 587.80 every month for 126 months.
- For a 10 lakh home loan you repay almost 16.8 lakh including interest and fees.
- A 25 lakh loan at 8% doubles in repayment over 20 years.
The amounts carry no currency symbol, so the calculator works the same way in rupees, dollars or any other currency.
How Tenure and Interest Rate Change the EMI
The same 2,500,000 loan at 7.5% over different tenures:
| Tenure | EMI and interest |
|---|---|
| 10 years | EMI 29,675.44 Interest 1,061,053.07 |
| 15 years | EMI 23,175.31 Interest 1,671,555.62 |
| 20 years | EMI 20,139.83 Interest 2,333,559.16 |
| 25 years | EMI 18,474.78 Interest 3,042,433.83 |
| 30 years | EMI 17,480.36 Interest 3,792,930.58 |
A longer tenure lowers the EMI but raises the interest sharply: going from 20 to 30 years saves 2,659.47 a month and costs 1,459,371.42 more in interest. The same loan over 20 years at different rates:
| Rate | EMI and interest |
|---|---|
| 7% | EMI 19,382.47 Interest 2,151,793.61 |
| 7.5% | EMI 20,139.83 Interest 2,333,559.16 |
| 8% | EMI 20,911.00 Interest 2,518,640.41 |
| 8.5% | EMI 21,695.58 Interest 2,706,939.40 |
| 9% | EMI 22,493.15 Interest 2,898,355.74 |
The Inputs
- Loan amount
- The principal: the amount you borrow from the bank or lender.
- Tenure
- The repayment period in years, months or both. 10 years and 6 months is 126 instalments.
- Annual rate (%)
- The yearly interest rate on the loan.
- Fee (%)
- The one-off processing fee as a percentage of the loan amount. Leave it empty if there is none.
When to Use the Home Loan EMI Calculator
- Budget planning. Know exactly how much to set aside for EMIs.
- Loan comparison. Compare EMIs from different banks.
- Prepayment decisions. See how a smaller balance or a shorter tenure reduces the interest.
- Property deals. Check affordability before buying.
- Financial education. Learn the effect of interest and tenure.
What the Calculator Assumes
- A fixed rate. The interest rate stays the same for the whole tenure. A floating rate loan changes its EMI or tenure when the rate moves.
- Monthly reducing balance. Interest is charged each month on the amount still owed.
- No prepayments. Every instalment is paid on time and in full, with nothing extra.
- Fee only. Taxes on the fee, insurance and other charges are not included.
How to Use the Home Loan EMI Calculator
- Enter the loan amount. Type the amount you want to borrow, such as 2,500,000. Commas are fine.
- Enter the tenure. Type the years, the months or both, such as 20 years and 0 months. At least one is needed.
- Enter the annual interest rate. Type the yearly rate as a percentage, such as 7.5.
- Enter the processing fee. Type the fee as a percentage of the loan, such as 0.5, or leave it empty.
- Read and copy the result. The EMI appears as you type, with the principal, the interest, the loan fees and the total payments. Press Copy to copy the EMI, or Clear or Esc to start again.
Example: 50,000 for 10 years and 6 months at 8% with a 0.4% fee. The EMI is 587.80, the interest is 24,063.06, the fee is 200 and the total is 74,263.06.
Who Can Use This Calculator?
Frequently Asked Questions (FAQs)
How do you calculate a home loan EMI?
Use EMI = P × R × (1 + R)^N ÷ ((1 + R)^N − 1), where P is the loan amount, R is the monthly rate (annual rate ÷ 12 ÷ 100) and N is the tenure in months.
What is the EMI on a 25 lakh home loan for 20 years?
At 7.5% a year the EMI on 2,500,000 over 20 years is 20,139.83 a month, with 2,333,559.16 of interest. At 8% it is 20,911 a month, with 2,518,640.41 of interest.
What does EMI stand for?
EMI stands for equated monthly instalment: the fixed amount paid to the lender every month until the loan is repaid. Each EMI is part principal and part interest.
Does a longer tenure reduce the EMI?
Yes, but it raises the total interest. On 2,500,000 at 7.5%, 20 years gives an EMI of 20,139.83 and 2,333,559.16 of interest, while 30 years gives 17,480.36 and 3,792,930.58 of interest.
How is the processing fee calculated?
It is the loan amount × the fee percentage ÷ 100, paid once. A 0.5% fee on 2,500,000 is 12,500. The calculator adds it to the total payments but not to the EMI.
Why is most of my early EMI interest?
Interest is charged on the balance still owed, which is largest at the start. In the 25 lakh example the first EMI of 20,139.83 has 15,625 of interest and only 4,514.83 of principal.
Can I use it for other loans?
Yes. The same formula applies to any loan repaid in equal monthly instalments at a fixed rate, such as a car loan or a personal loan.
Is the Home Loan EMI Calculator free?
Yes. It is completely free, needs no sign-up, and can be used as many times as you like.
Sources
- Wikipedia. Equated monthly installment.
- Wikipedia. Amortization calculator.
- Wikipedia. Amortization schedule.
- Wikipedia. Mortgage calculator.
- Wikipedia. Mortgage.
Try our Home Loan EMI Calculator and plan the loan for your dream home.