Home Loan EMI Calculator

Most home loan calculators take a loan amount and hand back an instalment. That is a real number about a loan you may not be offered. Lenders will not fund the whole price — 80% is the usual ceiling, more in some markets and less in others — and they cap the instalment separately against your income, whichever of the two is smaller. On top of that sit the purchase taxes and fees, which no mortgage covers and which catch out almost every first-time buyer. This works out the EMI, and then whether the purchase actually holds together: what the property allows, what your earnings allow, and how much cash has to be in the bank on the day.

How to use it

1. Enter the property price and what you are putting in yourself. The loan is the difference.
2. Set the rate and the tenure. A longer tenure lowers the instalment and raises the total interest sharply.
3. Check the two ceilings. The share a lender will fund and the share of income they allow are both settings, because they differ by country and by lender — the defaults are the common case, not a rule.
4. Add your monthly income and any instalments you already pay to find out which of the two limits binds first.
5. Read the cash figure. That is the down payment plus taxes and fees, and it is the number that decides whether you can complete.

Examples

• A 40 lakh flat with 8 lakh down at 8.5% over 20 years: 27,770 a month, and 10.8 lakh in cash on the day once 7% stamp duty is counted
• The same flat on a 50,000 monthly income: the property allows 32 lakh but the income supports about 28.8 lakh, so earnings are the binding limit
• A 300,000 house at 95% and 4.5% over 25 years works identically — only the ceilings change

Frequently asked questions

How much home loan can I get on my salary?

Eligibility works backwards from what you can service. Lenders take a share of your monthly income — commonly around half in India, closer to 43% in the United States, and an affordability test rather than a fixed ratio in the United Kingdom — subtract the instalments you already pay, and treat what is left as the biggest EMI you can carry. That EMI, at the rate and tenure on offer, sets the loan. Enter your income above and the page shows the figure, alongside what the property itself supports, because the smaller of the two is what you will actually be offered.

How much down payment do I need?

At least whatever the lender will not fund, and in practice more. If the ceiling is 80% then a fifth of the price is yours to find, but the honest figure is the cash number on this page, which adds the purchase taxes and fees the loan cannot cover. Putting in more than the minimum is usually worth it: it cuts the interest over the whole term, and in several markets it moves you past a threshold where mortgage insurance stops being required. Putting in less leaves no margin if the property is valued below the agreed price.

What costs does the home loan not cover?

The transfer tax, whatever your country calls it — stamp duty in India and the UK, transfer duty in Australia, closing costs in the US — plus registration or land registry fees, legal work, valuation, and the lender's own processing fee. Together these commonly run 5 to 8% of the price and occasionally more. They are payable in cash at completion, they are not part of the mortgage, and forgetting them is the single most common way a purchase falls over at the last moment. That is why this page shows the cash you need on the day rather than only the down payment.

Does this work outside India?

Yes. The instalment maths is the same in every market — amortisation does not vary by country — and the three things that do vary are settings you control rather than rules baked into the page. Set the share a lender will fund, the share of income they allow, and the purchase taxes for wherever you are buying, and switch the currency at the top. The defaults are a common case rather than a national standard, so if your lender has given you real figures, use those instead.

Should I choose a 20-year or 30-year tenure?

A longer tenure buys a lower instalment and costs a great deal more interest, and the trade is worse than most people expect because the extra years are the ones where almost every rupee goes to interest rather than principal. The useful way to decide is not which instalment you can just about manage, but which you could still manage if your income paused for a few months. Take the shorter tenure if it clears that test, and prepay when you can. Take the longer one if it does not, and treat the lower instalment as insurance rather than as a saving.

How much do I save by prepaying a home loan?

More than the size of the prepayment suggests, and far more the earlier it happens, because in the early years most of each instalment is interest and a lump sum comes straight off the principal that interest is charged on. In several markets, including India, floating-rate home loans to individuals carry no foreclosure charge, so prepaying costs nothing but the money itself — check your own agreement, since fixed-rate loans often do charge. Our EMI calculator models prepayment against the amortisation schedule if you want the exact figure.

What happens to my EMI if the interest rate changes?

On a floating-rate loan, usually the tenure moves rather than the instalment. Lenders tend to keep the EMI where it is and extend or shorten the term, which is why a rate rise can quietly add years to a loan without anything visible changing month to month. Ask your lender which they adjust, because it matters: an unchanged instalment is not the same as an unchanged loan. Rerun this page at a rate two or three points higher than today's to see what the same purchase looks like if rates move against you.