Home Loan Calculator
Plan your home loan with EMI and eligibility calculations
Down Payment: ₹10,00,000 | Loan Amount: ₹40,00,000
Monthly EMI
₹34,713
Principal
₹40,00,000
Total Interest
₹43,31,103
Tax Benefits: Claim deductions under Section 80C (up to ₹1.5 Lakh on principal) and Section 24(b) (up to ₹2 Lakh on interest for self-occupied property).
How Does a Home Loan EMI Work & How Can Prepayments Save Lakhs?
A home loan is typically the largest financial liability an Indian family takes on, with tenures stretching from 15 to 30 years. Because of the long duration, total interest paid over the tenure often exceeds the original borrowed amount.
By making small, systematic prepayments (such as paying 5% extra principal annually or adding 1 extra EMI each year), borrowers can shave 5 to 10 years off their mortgage and save lakhs of rupees in interest.
Home loans also offer substantial tax deductions under the Old Tax Regime: up to ₹2 Lakh on interest paid under Section 24(b) for a self-occupied property, and up to ₹1.5 Lakh on principal repayment under Section 80C.
Home Loan Rules, Limits & Tax Deductions
| Parameter | Details & Guidelines |
|---|---|
| Loan-to-Value (LTV) Cap | Up to 90% for loans ≤ ₹30L; 80% for ₹30L–₹75L; 75% for loans > ₹75L. |
| Section 24(b) Interest Deduction | Deduction up to ₹2,00,000/year on interest for self-occupied home. |
| Section 80C Principal Deduction | Deduction up to ₹1,50,000/year on principal repayment and stamp duty. |
| Prepayment Penalty | Zero prepayment or foreclosure penalty on floating-rate individual home loans (RBI mandate). |
| Joint Home Loan Benefits | Both co-borrowing spouses can claim separate ₹2L interest and ₹1.5L principal deductions. |
Home Loan Prepayment vs Investing in Equity SIP
Prepaying Home Loan
Delivers a guaranteed, risk-free return equal to your loan interest rate (8.5%–9.0%) and eliminates debt stress.
Investing in Equity SIP
Historically yields 12%–14% CAGR over 15+ years. If your post-tax return exceeds your home loan interest rate, investing creates more wealth.
Try SIP Calculator →Standard Loan EMI
Calculate basic amortization across personal, auto, or educational loans.
Try General EMI Calculator →