Calculate your home loan EMI, and see your real cost after tax savings.

How home loan EMI is calculated

EMI (Equated Monthly Instalment) is the fixed amount you pay every month toward your home loan, covering both the principal and the interest. The formula is:

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

where:
  P = principal loan amount
  r = monthly interest rate (annual rate ÷ 12 ÷ 100)
  n = tenure in months

For a ₹50 lakh loan at 8.5% annual interest over 20 years, the calculation works out to an EMI of approximately ₹43,391 per month. Over 240 months, you'll pay ₹54.1 lakh in interest — more than the loan itself.

The tax benefits this calculator considers

Three Income Tax Act sections give Indian home loan borrowers significant deductions:

Section 24(b): Interest deduction

Up to ₹2,00,000 per year of home loan interest can be deducted from your taxable income for a self-occupied property. For a let-out property, there's no upper limit on the deduction (though set-off against other income is capped at ₹2 lakh).

Section 80C: Principal deduction

Up to ₹1,50,000 per year of principal repayment qualifies for deduction — but this shares the overall ₹1.5 lakh 80C limit with PPF, ELSS, EPF, life insurance, and other investments. Most salaried borrowers have other 80C investments, so the actual claim on home loan principal is often less than the full ₹1.5 lakh.

Section 80EEA: Additional deduction for first-time buyers

If your property's stamp duty value is ₹45 lakh or less and you're a first-time home buyer, an additional ₹1,50,000 per year deduction on interest is available — over and above the Section 24(b) limit. This benefit was extended several times and applies to loans sanctioned within specified windows; check the current eligibility.

Old vs new tax regime: which works better with a home loan?

The new tax regime (Section 115BAC) offers lower slab rates but disallows most deductions, including Section 24(b) and 80C. For a home loan borrower, the choice depends on your total deduction stack:

• Old regime usually wins if: you claim full ₹2 lakh interest deduction (Section 24b) + ₹1.5 lakh 80C + HRA/standard deduction. Combined, this often offsets the higher slab rates.
• New regime usually wins if: you have a smaller loan with limited interest deduction, or no other 80C investments, or you're early-career with relatively low income.

Run the numbers both ways. For most home loan borrowers in the 20% or 30% slab with a loan over ₹25 lakh, the old regime is more beneficial — but not always.

What this calculator does not include

For full transparency, the EMI shown here is the principal + interest only. Real home loan costs include several other items:

• Processing fee — usually 0.25% to 1% of the loan amount, paid upfront
• Stamp duty and registration — varies by state, typically 5-8% of property value
• GST on under-construction property — 1% for affordable housing, 5% for others
• Property insurance — often required by the lender
• Home loan insurance / loan protection insurance — sometimes pushed as mandatory but typically optional
• Property tax, society maintenance, repairs — ongoing costs of ownership

When you compare a home loan EMI to rent, include these other costs to get a fair picture. The EMI is just the headline number.