Home Loan Calculator
Calculate EMI, interest payments, and total cost for your home loan with prepayment options
Pre-payment Options
Add lump sum prepayments to see how they affect your loan tenure and interest burden
Basic Loan Results
Monthly EMI
₹34,713
Total Interest
₹4,331,120
Total Payment
₹8,331,120
Understanding Home Loans
What is a Home Loan?
A home loan is a long-term loan provided by banks and financial institutions to help you purchase, construct, or renovate a residential property. The property itself serves as collateral for the loan, and you repay the amount borrowed along with interest over a period of 10-30 years through monthly EMIs.
Home loans are one of the most significant financial commitments you'll make in your lifetime. They offer the opportunity to own your dream home while spreading the cost over many years, making homeownership accessible to middle-class families.
Types of Home Loans
🏠 Purchase Loan
For buying a ready-to-move-in property. Usually covers 80-90% of property value.
🏗️ Construction Loan
For building a house on your own plot. Disbursed in stages as construction progresses.
🔧 Renovation Loan
For renovating or improving existing property. Lower amounts compared to purchase loans.
🏢 Plot Loan
For buying a residential plot. Usually 60-70% of plot value with higher interest rates.
How Home Loan Calculator Works
Our home loan calculator uses the standard EMI formula to calculate your monthly payments:
Formula: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where: P = Loan Amount, r = Monthly Interest Rate, n = Total Number of Months
The calculator considers your loan amount, interest rate, loan tenure, and down payment to show you the monthly EMI, total interest payable, and total amount payable over the loan tenure.
Factors Affecting Home Loan
📊 Loan Amount
Higher loan amounts result in higher EMIs. Most banks finance 80-90% of property value.
📈 Interest Rate
Current rates range from 6.5-9% p.a. Rates depend on credit score, income, and lender.
⏰ Loan Tenure
Longer tenures (up to 30 years) reduce monthly EMI but increase total interest paid.
💳 Down Payment
Higher down payments reduce loan amounts and EMIs. Minimum 10-20% usually required.
Home Loan Application Process
📋 Documentation
Prepare income proof, bank statements, property documents, and identity proofs. Self-employed individuals need additional business documents.
🏦 Lender Selection
Compare interest rates, processing fees, and terms from multiple lenders. Consider both banks and housing finance companies.
✅ Approval & Disbursement
After approval, loan is disbursed directly to the seller/developer. Property registration and insurance are mandatory requirements.
Home Loan vs Renting
✅ Home Loan Advantages
- • Build equity over time
- • Tax benefits on interest
- • Freedom to customize
- • Long-term investment
- • No rental increases
🏠 Renting Advantages
- • Lower upfront costs
- • Flexibility to move
- • No maintenance costs
- • No property taxes
- • Investment flexibility
Tax Benefits on Home Loan
Interest Deduction
Up to ₹2 lakhs deductible under Section 24(b) for self-occupied property
Principal Repayment
Up to ₹1.5 lakhs deductible under Section 80C (with other investments)
Stamp Duty
Additional deduction up to ₹1.5 lakhs under Section 80C
Home Loan Tips
- •Check eligibility: Use online calculators to assess loan eligibility before applying
- •Compare lenders: Get quotes from multiple banks and housing finance companies
- •Negotiate rates: Use competing offers to negotiate better interest rates
- •Consider prepayment: Plan for partial prepayments to reduce interest burden
- •Insurance coverage: Opt for home loan insurance to protect your family