Home Loan EMI Calculator
Calculate your monthly EMI, total interest payable, and total payment for your home loan.
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Loan Details
Personalise your Home Loan EMI
Tell us about your finances, and we'll help you determine if this loan fits comfortably within your budget.
Enter your loan details above to see if this loan is affordable for you.
How to Calculate Home Loan EMI
The Equated Monthly Installment (EMI) for a home loan is calculated using the following formula:
EMI = [P × R × (1+R)^N]/[(1+R)^N-1]
Where:
- P = Principal loan amount
- R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
- N = Total number of monthly installments (Loan tenure in years × 12)
Example Calculation
For a home loan of ₹30,00,000 at 8.5% interest for 20 years:
- P = 30,00,000
- R = 8.5 ÷ 12 ÷ 100 = 0.00708
- N = 20 × 12 = 240 months
- EMI = ₹26,035 per month
Factors Affecting Home Loan EMI
- Loan amount (higher amount = higher EMI)
- Interest rate (higher rate = higher EMI)
- Loan tenure (longer tenure = lower EMI but more interest)
- Down payment (higher down payment = lower loan amount)
Understanding Home Loan Calculations
Figuring out how much home loan you can afford based on your salary doesn't have to be complicated. Let's break down everything you see on this page and how it all works together.
The Calculator: What It Does
At the top of the page, you'll find our Home Loan EMI Calculator. This tool helps you understand three key things:
- How much your monthly payment (EMI) will be
- How much total interest you'll pay over the life of the loan
- What your total payment amount will be (principal + interest)
You can adjust three main factors that affect your loan:
- Loan Amount: How much money you want to borrow
- Interest Rate: The percentage the bank charges you for the loan
- Loan Tenure: How many years you'll take to repay the loan
The Affordability Check: Is This Loan Right For You?
Below the calculator, you'll see the "Check Loan Affordability" section. This is where things get personal - it helps you determine if the loan you're considering is actually manageable for your financial situation.
You can input:
- Monthly Income: Your take-home salary after taxes
- Monthly Expenses: Regular costs like rent, utilities, groceries
- Other EMIs: Any other loan payments you're already making
- Employment Type: Government employees can typically handle higher EMI-to-income ratios (40-45%) than private sector employees (30-40%)
The affordability indicator shows you a risk level from "Very Safe" to "High Risk" based on how much of your income would go toward loan payments.
How Banks Calculate Your Loan Eligibility
When you apply for a home loan, banks look at your income in two main ways:
1. Income Multiplier Method
Banks typically offer 3-5 times your annual income as a loan amount.
Example: If you earn ₹10,00,000 per year, you might qualify for a loan of ₹30,00,000 to ₹50,00,000.
2. EMI-to-Income Ratio Method
Your total EMIs (including the new home loan) shouldn't exceed a certain percentage of your monthly income.
For government employees: Up to 45% of monthly income
For private sector employees: Up to 40% of monthly income
A Real-Life Example
Let's say Priya earns ₹80,000 per month (₹9,60,000 per year) and works in the private sector:
- Income Multiplier: ₹9,60,000 × 4 = ₹38,40,000 potential loan amount
- EMI Capacity: ₹80,000 × 0.4 = ₹32,000 maximum monthly EMI
- Existing Obligations: Priya already pays ₹8,000 for a car loan, so she has ₹24,000 available for a home loan EMI
- Working Backwards: With ₹24,000 EMI capacity, 8.5% interest, and 20-year tenure, she can borrow approximately ₹27,60,000
- Property Value: With a 20% down payment of ₹6,90,000, she can look at properties worth around ₹34,50,000
Smart Borrowing Tips
- The 20% Rule: Try to make a down payment of at least 20% of the property value
- The Buffer Principle: Borrow 10-15% less than your maximum eligibility to leave room for emergencies
- The Tenure Trade-off: Longer tenures mean lower EMIs but higher total interest. Find your sweet spot.
- The Future Factor: Consider upcoming life changes (children's education, career changes) when deciding your EMI commitment
About Home Loans
A home loan is a secured loan provided by financial institutions to help individuals purchase residential property. The property itself serves as collateral for the loan, which typically offers lower interest rates compared to unsecured loans.
Types of Home Loans
- Fixed-rate home loans
- Floating-rate home loans
- Balance transfer home loans
- Home improvement loans
- Land purchase loans
How to Use This Calculator
- Enter your desired loan amount
- Set the interest rate offered by your lender
- Choose your preferred loan tenure
- View your monthly EMI and total interest payable