Quick answer
For a ₹50 lakh home loan at 8.5% for 20 years, the EMI is ₹43,391. Total interest is ₹54,13,879, more than the loan itself. Stretching the same loan to 30 years cuts the EMI to ₹38,446 but raises total interest to ₹88,40,443.
Key takeaways
- Home loan rates in India track the RBI repo rate for most new floating-rate loans.
- In the first few years, most of your EMI goes to interest. Early prepayments save the most.
- Old regime: deduct up to ₹2 lakh interest (Sec 24b) and ₹1.5 lakh principal (Sec 80C). The new regime gives neither for a self-occupied home.
Home loan EMI formula
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]- P = loan amount
- r = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = tenure in months
Home loan EMI table (2026)
| Loan amount | 10 yrs | 15 yrs | 20 yrs | 25 yrs | 30 yrs |
|---|---|---|---|---|---|
| ₹10 L | ₹12,399 | ₹9,847 | ₹8,678 | ₹8,052 | ₹7,689 |
| ₹20 L | ₹24,797 | ₹19,695 | ₹17,356 | ₹16,105 | ₹15,378 |
| ₹25 L | ₹30,996 | ₹24,618 | ₹21,696 | ₹20,131 | ₹19,223 |
| ₹30 L | ₹37,196 | ₹29,542 | ₹26,035 | ₹24,157 | ₹23,067 |
| ₹40 L | ₹49,594 | ₹39,390 | ₹34,713 | ₹32,209 | ₹30,757 |
| ₹50 L | ₹61,993 | ₹49,237 | ₹43,391 | ₹40,261 | ₹38,446 |
| ₹60 L | ₹74,391 | ₹59,084 | ₹52,069 | ₹48,314 | ₹46,135 |
| ₹75 L | ₹92,989 | ₹73,855 | ₹65,087 | ₹60,392 | ₹57,669 |
| ₹1 Cr | ₹1,23,986 | ₹98,474 | ₹86,782 | ₹80,523 | ₹76,891 |
Click a loan amount for its EMI at different rates and tenures.
How to lower your home loan cost
- Keep a credit score of 750+: lenders price loans by risk.
- Make a bigger down payment: a loan-to-value ratio under 80% often gets a better rate.
- Prepay early: even one extra EMI a year can cut a 20-year loan by about 3–4 years. Calculate your savings.
- Review your rate yearly: if your spread is higher than new-customer offers, ask your bank to reprice or switch lenders.
Frequently asked questions
Is EMI calculated on reducing balance?
Yes. Banks and NBFCs in India charge interest on the outstanding balance. Early EMIs are mostly interest, and later EMIs are mostly principal. The amortisation table above shows this split.
Does a longer tenure reduce EMI?
Yes, but you pay much more interest in total. A shorter tenure with a slightly higher EMI can save lakhs of rupees.
What is the EMI for a ₹30 lakh home loan?
At 8.5% a year: ₹26,035 for 20 years, or ₹23,067 for 30 years.
How much home loan can I get on my salary?
Lenders usually cap all EMIs at 50–60% of net monthly income. At 8.5% over 20 years, a ₹1 lakh take-home salary with no other loans supports a loan of about ₹57 lakh. Try the Home Loan Eligibility Calculator.
Is a home loan tax deductible under the new regime?
For a self-occupied house, no. Interest (Sec 24b) and principal (Sec 80C) deductions are available only in the old regime. For a let-out property, interest can be set against rental income under both regimes.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.