Home Loan EMI Calculator
Calculate home loan EMI with PMAY subsidy for EWS/LIG/MIG categories. Includes Section 24 (Rs 2L) and 80C (Rs 1.5L) tax benefit. SBI, HDFC, ICICI rates. Year-wise amortization schedule.
Home Loan EMI Calculator
With PMAY subsidy & tax benefit · Updates instantly
SBI: 8.5% · HDFC: 8.75% · ICICI: 8.75% · Kotak: 8.7%
Results are estimates. Actual EMI depends on your bank's compounding method and processing fees.
| Year | EMI Paid | Principal Paid | Interest Paid | Interest % | Balance |
|---|
On a ₹50L home loan at 8.5% for 20 years, Section 24 tax deduction (up to ₹2L/year) saves ₹62,400 in tax annually at 30% bracket — reducing effective EMI cost by ₹5,200/month. Always factor this into your rent vs buy decision.
What is a Home Loan EMI Calculator?
A home loan EMI calculator helps you plan your biggest financial commitment before signing on the dotted line. EMI stands for Equated Monthly Instalment — the fixed monthly payment you make to your bank covering both principal repayment and interest. With home loan tenures running 15–30 years, even a small difference in rate or tenure translates to lakhs in total interest.
ThriftRupee's home loan EMI calculator is India-specific — default values reflect real Indian home loan amounts (₹30L–₹1Cr), current SBI and HDFC rates (8.5–8.75%), and includes PMAY subsidy calculation and Section 24 tax benefit estimation.
How to use this calculator
Enter your loan amount using the preset chips (₹20L to ₹1.5Cr) or type your exact figure. Input the interest rate your bank has quoted — always use the rate from your sanction letter, not advertised teaser rates. Set your repayment tenure. The PMAY subsidy toggle helps first-time buyers see the subsidised effective cost. The tax bracket selector shows your annual Section 24 + 80C benefit.
Home loan EMI formula
All Indian banks calculate home loan EMI using the reducing balance method:
P = Loan principal · r = Monthly rate (annual rate ÷ 12 ÷ 100) · n = Tenure in months
Example: ₹50L at 8.5% for 20 years → EMI = ₹43,391/month
PMAY subsidy — who qualifies?
Pradhan Mantri Awas Yojana offers interest subsidy for first-time home buyers: EWS/LIG category (household income up to ₹6L/year) gets 6.5% subsidy on loans up to ₹6L. MIG-I (₹6L–₹12L income) gets 4% on up to ₹9L. MIG-II (₹12L–₹18L income) gets 3% on up to ₹12L. The subsidy is credited upfront as a principal reduction, reducing your effective EMI from day one.
Tax benefits on home loans
Section 24: Deduction of up to ₹2 lakh per year on interest paid for a self-occupied property under the old tax regime. For a let-out property, the full interest is deductible with no upper limit.
Section 80C: Principal repayment up to ₹1.5 lakh per year is deductible, along with stamp duty and registration charges in the first year.
At 30% tax bracket, these combined deductions save up to ₹1.05L annually — reducing the effective home loan cost significantly.
ThriftRupee tips for home loan borrowers
Tip 1: Compare the spread, not just the headline rate. Most home loans are MCLR-linked or repo-linked. The rate you get = benchmark rate + spread. Banks change the benchmark but rarely reduce the spread. Negotiate the spread down — a 0.25% reduction saves ₹3–4L on a ₹50L loan.
Tip 2: Choose tenure based on affordability, not habit. Most people default to 20 years. If you can afford a 15-year EMI, the interest saving is enormous — ₹18L on a ₹50L loan. Use this calculator to find the shortest tenure your budget can support.
Tip 3: Prepay during the first 7 years. In the first 7 years of a 20-year home loan, 65–70% of your EMI is interest. Prepaying any lump sum during this window saves 3–4 times more than the same amount prepaid in year 15.