FINANCIAL PLANNING TOOL

Comprehensive Loan EMI Calculator

Calculate your monthly installment, simulate prepayment savings, view dynamic amortization charts, and plan home loan tax deductions.

Quick Presets:
Loan Parameters
₹ INR
₹50K Fifty Lakhs ₹2 Cr
%
5% Floating / Standard Bank Rate 20%
Years
1 Year 240 Months 30 Years
Prepayment & Extra Repayments Save Interest
Monthly Installment (EMI) Equated Monthly Payment
₹43,391
per month for 20 years (240 payments)
Principal Amount
₹50,00,000
Total Interest Payable
₹54,13,879
Processing Fees
₹25,000
Total Amount Payable
₹1,04,38,879
Loan Payoff Date
Aug 2046
Interest : Principal
1.08x
Principal Interest
Principal ₹50,00,000 (48.0%)
Total Interest ₹54,13,879 (52.0%)

Loan Amortization Schedule

Complete breakdown of yearly and monthly repayments with principal, interest, and outstanding balance.

Year / Period Opening Balance EMI Paid Principal Interest Extra Prepay Closing Balance Paid %
Tax Deductions on Home Loans in India

Under the Indian Income Tax Act (Old Tax Regime), you can claim substantial tax deductions on your home loan.

ITR Filing Guide
Section 24(b) Up to ₹2,00,000 / year

Interest Deduction

Deduction allowed on the total interest paid during the financial year on a loan taken for purchase or construction of a self-occupied property.

Your 1st Year Interest: ₹4,22,120
Eligible Sec 24(b) Deduction: ₹2,00,000
Section 80C Up to ₹1,50,000 / year

Principal Repayment

Deduction allowed on repayment of the principal amount of the loan, plus stamp duty & registration charges incurred during property purchase.

Your 1st Year Principal: ₹98,572
Eligible Sec 80C Deduction: ₹98,572
Section 80EEA Up to ₹1,50,000 / year

First-Time Home Buyers

Additional interest deduction for first-time home buyers of affordable housing (stamp value up to ₹45 Lakhs, sanctioned between Apr 2019 - Mar 2022).

Combined Max Tax Shield: Up to ₹5,00,000 / year

How is Loan EMI Calculated?

EMI = P × r × (1 + r)n(1 + r)n − 1
P = Principal Loan Amount (e.g., ₹50,00,000)
r = Monthly Interest Rate = Annual Rate ÷ (12 × 100) (e.g., 8.5% p.a. → 0.085/12 = 0.007083)
n = Loan Tenure in Months (e.g., 20 years → 240 months)

Every Equated Monthly Installment (EMI) consists of two components: Principal and Interest. In the initial years of a loan, a major portion of your EMI goes toward paying interest. As the outstanding loan balance reduces over time, the interest component decreases and a larger portion goes toward repaying the principal.

Frequently Asked Questions

What is an EMI and how does it work?

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.

What is the difference between Fixed and Floating interest rates?

A fixed rate remains constant throughout the loan tenure, keeping your EMI unchanged. A floating interest rate is tied to an external benchmark (such as RBI's repo rate or MCLR) and fluctuates periodically with market rate revisions.

How does prepayment or making extra monthly payments help?

Prepayments go 100% towards reducing your outstanding principal balance. Since interest is calculated every month on the reducing balance, even a modest extra monthly payment (e.g., ₹5,000) can save lakhs of rupees in interest and cut several years off your loan tenure.

Are there any charges for prepaying floating rate home loans?

No. As per Reserve Bank of India (RBI) guidelines, banks and NBFCs cannot levy any foreclosure fees or prepayment penalty charges on floating-rate home loans sanctioned to individual borrowers.

This calculator is provided for illustrative and financial planning purposes only. Exact EMI, amortizations, charges, and tax benefits may vary depending on individual bank terms, credit score, and applicable tax regimes.