EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
P = Loan Amount | r = Monthly Rate (Annual% ÷ 1200) | n = Tenure (months)
How to Use
Enter the loan amount, annual interest rate offered by your bank, and tenure in years.
Switch to the Eligibility tab to see the maximum loan amount you qualify for based on your salary.
Use the Prepayment tab to see how a lump-sum payment saves years of tenure and lakhs of interest.
Frequently Asked Questions
Home Loan EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = total months. Banks use the reducing balance method, so interest is charged only on outstanding principal each month.
Most banks allow home loan EMI up to 40–50% of your net monthly income. With ₹60,000 net salary, you can afford an EMI of ₹24,000–₹30,000, which corresponds to roughly ₹22–28 lakh loan for 20 years at 8.5% p.a. Existing obligations reduce this limit.
Most banks reduce the loan tenure (keeping EMI same) on prepayment, which saves the most interest overall. Some banks let you choose. Reducing tenure is usually better — you clear the loan faster and pay significantly less total interest.
Home loan rates in India in 2026 typically range from 8.35% to 10%+ p.a. depending on the lender, CIBIL score, loan amount, and fixed vs floating rate. Government schemes like PMAY offer subsidized rates. Check your bank's official website for current rates.
As per RBI guidelines, banks cannot charge prepayment penalties on floating-rate home loans for individual borrowers. For fixed-rate loans, a 2–3% charge may apply. NBFCs may have different rules. Always confirm with your lender before making a prepayment.