Mortgage Payment Calculator
Home loan EMI with tax savings and schedule
Enter your home loan details to calculate EMI
Get monthly EMI, total interest, full amortization schedule, Section 24B tax savings and prepayment impact — all in one place.
A home loan is the largest financial commitment most Indians make, yet most people close the deal knowing only one number: the monthly EMI. What they do not know is how much of that EMI goes to interest versus principal in each year, what their outstanding balance will be after 5 or 10 years, how much tax they save under Section 24B, or what happens to the total cost if they make a small extra payment every month. This mortgage payment calculator India shows all of it at once.
Enter your loan amount, interest rate, tenure and start month. Then optionally enter an extra monthly payment and your income tax bracket. Results include a complete picture: monthly EMI, total interest as a percentage of the loan, balance outstanding at milestone years, Section 24B annual tax savings, prepayment impact on tenure and interest, a full amortization schedule and a yearly summary.
What This Home Loan EMI Calculator Shows That Others Do Not
Standard home loan calculators give you an EMI and a total interest figure. Both are useful but incomplete. A home loan runs for 20 to 30 years. Understanding what happens inside those years separates informed borrowers from people who discover unpleasant surprises at year 10 or year 15.
Section 24B tax saving, built into the calculator
No other free home loan calculator India tool calculates Section 24B deduction automatically. Select your income tax bracket and the calculator shows your annual tax saving on home loan interest (up to ₹2,00,000/year for self-occupied property) and the estimated total tax benefit across the loan tenure. On a ₹40L loan at 8.5% in the 30% tax bracket, this saves ₹60,000 per year, equivalent to a 0.6% reduction in effective interest rate.
Prepayment impact, shows exact savings
Enter any extra monthly payment amount and the calculator immediately shows how many years earlier the loan closes and the exact interest saved. On a ₹40L 20-year loan at 8.5%, adding just ₹5,000/month extra closes the loan in 14.8 years instead of 20, saving ₹12.99 lakh in total interest and freeing up EMI 62 months early. This home loan prepayment calculator feature is not available on any other free tool in India.
Balance at milestone years, not just the final number
The calculator shows your outstanding balance at the 5-year, 10-year and 15-year marks, not just the total figures at the end. Most borrowers want to know how much they still owe if they need to sell the property or refinance partway through. On a ₹40L 20-year loan at 8.5%, you still owe ₹35.25L after 5 years and ₹27.99L after 10 years. That is far more than most people expect.
Interest % of principal, the number that shocks most borrowers
On a 20-year home loan at 8.5%, total interest paid is 108% of the principal. You effectively pay for the house twice. On a 30-year loan, interest exceeds 175% of the principal. A health bar shows this percentage so you see at a glance what the true cost of a long tenure is. Reducing tenure by 5 years typically cuts total interest by 25 to 35%.
How the amortization schedule works: Monthly schedule shows the first 6 and last 6 payments with a summary row in between. Yearly summary tab shows the same data aggregated by year, useful for understanding how your principal-to-interest ratio shifts over time. In the early years of a home loan, 75 to 85% of every EMI is interest. By the final years, 75 to 85% is principal. A crossover point is visible in the chart.
The Home Loan EMI Calculator Formula
Every bank in India uses the standard reducing-balance EMI formula. Understanding it lets you verify any bank quote and understand why your early EMIs barely dent the principal.
EMI = P × R × (1 + R)N÷ [(1 + R)N− 1]- P— Principal loan amount (property value minus down payment)
- R— Monthly interest rate = Annual rate ÷ 12 ÷ 100
- N— Tenure in months = Years × 12
For ₹40L at 8.5% per year: R = 8.5 ÷ 12 ÷ 100 = 0.007083 per month, N = 20 × 12 = 240 months. Each month, interest is calculated on the remaining balance (reducing-balance method), not the original principal. Early EMIs are mostly interest for this reason.
Annual Tax Saving = min(Annual Interest Paid, ₹2,00,000) × Tax Bracket %- Deduction Limit— ₹2,00,000/year on interest for self-occupied residential property under Section 24(b) of the Income Tax Act
- Tax Bracket— 5%, 20% or 30% depending on your total taxable income
- Section 80C— Principal repayment up to ₹1,50,000/year also qualifies for deduction under Section 80C (not included in this calculator)
In the first year of a ₹40L loan at 8.5%, annual interest is approximately ₹3,40,000, but the deduction is capped at ₹2,00,000. For a borrower in the 30% bracket, this saves ₹60,000/year in tax. Effective interest rate drops from 8.5% to approximately 6.5% when accounting for this deduction alone.
How to Use This Mortgage Calculator, Step by Step
Step 1: Enter loan amount, rate and tenure
Loan amount is the amount you borrow: property purchase price minus your down payment. For a ₹60L flat with a 20% down payment, loan amount is ₹48L. Interest rate is whatever your bank has quoted. For 2025, SBI home loan rates start at 8.5% and most banks range from 8.5% to 10.5% depending on CIBIL score and loan amount. Tenure can be selected from the dropdown. Longer tenures reduce EMI but increase total interest significantly.
Step 2: Set the start month
The start month is used to calculate all payment dates, the end date and the milestone year balances with accurate calendar months. It defaults to the current month. If your loan has not yet started, set it to your expected first disbursement month. Amortization schedule shows exact month-year labels matching your bank's actual schedule.
Step 3: Enter extra payment and tax bracket (optional but valuable)
These two optional inputs are what separate this emi calculator for home loan from every other free tool. Extra monthly payment field shows precisely how much interest you save and how many years earlier the loan closes. Even ₹2,000/month extra on a ₹30L 20-year loan saves over ₹4 lakh and cuts 2 years from the tenure. Tax bracket input shows your actual Section 24B annual deduction so you understand the real after-tax cost of the loan.
Step 4: Review milestones, schedule and yearly summary
The milestone row shows your outstanding balance at 5-year, 10-year and 15-year marks, which is critical for property sellers, refinancers or anyone planning a future prepayment. Monthly schedule shows the first 6 and last 6 payments so you can verify your bank statements. Yearly summary aggregates principal paid, interest paid, total paid and closing balance by year, useful for tax filing and annual financial planning.
Real Example: Exact Calculator Output
Enter these exact inputs to verify the calculator matches the numbers below to the rupee.
Loan: ₹40,00,000 | Rate: 8.5% | Tenure: 20 years | Extra payment: ₹0- Monthly EMI:₹34,713
- Total Interest:₹43,31,103 (108.3% of principal)
- Total Payment:₹83,31,103
- Balance after 5 years:₹35,25,087
- Balance after 10 years:₹27,99,753
- Section 24B saving (30% bracket):₹60,000/year
- Effective annual tax-adjusted interest:approximately ₹2,80,000 instead of ₹3,40,000 in Year 1
After 5 years of paying ₹34,713/month (total paid: ₹20,82,780), you still owe ₹35,25,087, more than 88% of the original loan. Reducing-balance effect explains this: most early payments go to interest, not principal reduction. Principal repaid exceeds interest for the first time occurs around month 168 (year 14) on this loan.
Loan: ₹40,00,000 | Rate: 8.5% | Tenure: 20 years | Extra payment: ₹5,000/month- Monthly payment:₹34,713 + ₹5,000 = ₹39,713
- Loan closes in:178 months (14.8 years)
- Years saved:5.2 years
- Total interest with prepayment:₹30,31,888
- Interest saved:₹12,99,215
₹5,000/month extra costs ₹5,000 × 178 = ₹8,90,000 in total extra payments but saves ₹12,99,215 in interest, a net gain of ₹4,09,215 plus the psychological benefit of being debt-free 5+ years earlier. Break-even on extra prepayments is typically well under 2 years on most home loans.
Home Loan Amortization Schedule India, Reference Table
The table below shows how much of each ₹34,713 EMI goes to principal versus interest at key points in a ₹40L 20-year loan at 8.5%. This is the home loan amortization schedule India borrowers rarely see spelled out clearly.
| Point in Loan | Monthly Interest | Monthly Principal | Interest % of EMI | Outstanding Balance |
|---|---|---|---|---|
| Month 1 | ₹28,333 | ₹6,380 | 81.6% | ₹39,93,620 |
| Year 5 (Mo 60) | ₹25,038 | ₹9,675 | 72.1% | ₹35,25,087 |
| Year 10 (Mo 120) | ₹19,936 | ₹14,777 | 57.4% | ₹27,99,753 |
| Year 15 (Mo 180) | ₹12,145 | ₹22,568 | 35.0% | ₹16,91,949 |
| Year 20 (Mo 240) | ₹244 | ₹34,469 | 0.7% | ₹0 |
These figures are calculated using the standard reducing-balance EMI formula. Actual bank statements may differ slightly due to rounding in each payment cycle. Use the monthly schedule tab in the calculator for the exact figures matched to your start date.
Section 24B Home Loan Deduction, Everything You Need to Know
Section 24B is one of the most valuable tax deductions available to Indian home loan borrowers and is consistently underutilised because borrowers do not know how much they actually save. Section 24B deduction applies to interest paid on a home loan for a self-occupied residential property, with a maximum of ₹2,00,000 per financial year.
Property must be self-occupied (not rented out). Loan must be for purchase or construction, not renovation (renovation loans have a lower ₹30,000 cap). Construction must be completed within 5 years from the end of the financial year in which the loan was taken. For loans taken from April 1999 onwards, the maximum deduction is ₹2,00,000/year.
In the first year of a ₹40L loan at 8.5%, annual interest is approximately ₹3,40,000. Since the deduction is capped at ₹2,00,000, the tax saving for a 30% bracket taxpayer is ₹60,000, not ₹1,02,000. This cap is handled automatically by the calculator.
Additional benefit: Principal repayment up to ₹1,50,000/year also qualifies for Section 80C deduction, separate from Section 24B.
For a 30% bracket taxpayer on a ₹40L loan at 8.5%, the Section 24B deduction saves ₹60,000/year. Annual interest burden reduces from ₹3,40,000 to an effective ₹2,80,000 in Year 1, equivalent to a rate of approximately 7.0% on the outstanding balance. That is the actual cost of the money, not the quoted 8.5%.
For a 20% bracket taxpayer, the saving is ₹40,000/year and the effective rate drops to approximately 7.5%. For a 5% taxpayer the saving is ₹10,000 and the benefit is minimal. Understanding your effective rate helps compare home loan cost against other investment returns accurately.
Note: Section 24B is only available for self-occupied properties under the old tax regime. If you have opted for the new tax regime, this deduction is not available.
Frequently Asked Questions
