Mortgage Calculator

Calculate home loan EMI, total cost, amortization schedule & more

Enter your home financing details and press calculate to generate the cost distribution and amortization schedule.

• Understanding Mortgages & Home Loans

A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral. In India, it"?s most commonly referred to as a Home Loan. This calculator helps you determine your monthly EMI, total interest, and shows the amortization schedule"which is the exact breakdown of how each payment pays off the principal versus the interest.

Down Payment ‹ Amortization ?? Interest Heavy Early ? PMI/Insurance

Mortgage EMI Formula

The Standard Formula EMI = P A r A (1 + r) [(1 + r) 1] P = Loan Amount (Property Value Down Payment) | r = Monthly Interest Rate | n = Total Months

Worked Example

50 Lakh Home, 20% Down Payment

Property Price: 50,00,000

Down Payment (20%): 10,00,000

Loan Amount (Principal): 40,00,000

Interest Rate: 8.5% p.a. | Tenure: 20 Years

Monthly EMI: 34,713

Over 20 years, you pay back exactly 40 Lakhs in principal + 43.3 Lakhs in pure interest.

Frequently Asked Questions

Mortgages use an amortization schedule. In the first few years, your loan balance is at its highest, so the interest calculated on it is massive. Early EMIs are almost entirely interest, while EMIs towards the end of the loan go almost entirely toward the principal. Use our Amortization Table feature to see this dynamically.

A higher down payment reduces the total principal you need to borrow. Since interest is calculated on the principal, borrowing less heavily reduces your total interest paid, lowers your EMI, and often gets you a better interest rate from the bank because the loan is less risky for them. Most banks in India require at least 15"20% down payment.

PMI protects the lender in case you default. In the US, it's typically required if your down payment is less than 20%. In India, while PMI isn't standard, banks often mandate a life insurance policy (or loan protection policy) strictly to cover the home loan amount in case of the borrower's unfortunate demise.

A 30-year loan has a smaller monthly payment (EMI), making it easier budget-wise, but you will pay significantly more total interest. A 15-year loan has a higher EMI, but you pay it off faster and save massive amounts in interest. If you take a 30-year loan but pre-pay chunks of the principal when you get bonuses, you can get the best of both worlds.

What is a Mortgage Calculator?

A mortgage calculator helps home buyers estimate their monthly mortgage payments. Unlike a simple loan calculator, an advanced mortgage calculator can factor in the property tax, home insurance, and Private Mortgage Insurance (PMI) to give you a true PITI (Principal, Interest, Taxes, Insurance) payment.

Understanding the PITI Payment

How to Use This Calculator

  1. Home Price: Enter the total purchase price of the property.
  2. Down Payment: Enter the amount you are paying upfront (e.g., 20%).
  3. Interest Rate: Enter the fixed annual interest rate.
  4. Loan Term: Choose the duration, typically 15 or 30 years.

Example: $300,000 Home with 20% Down

Loan Amount: $240,000 | Rate: 6.5% | Term: 30 Years
Principal & Interest Payment: $1,516.96 per month.
(Total with taxes and insurance will be higher.)

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Frequently Asked Questions

What is PMI and when do I pay it?

Private Mortgage Insurance (PMI) protects the lender if you default. It is usually required if your down payment is less than 20% of the home's purchase price.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage has higher monthly payments but saves you tens of thousands of dollars in total interest. A 30-year mortgage offers lower, more affordable monthly payments but costs more over the life of the loan.

Does this calculator include property tax?

Yes, if you enter your estimated annual property tax and homeowners insurance, the calculator will include them in your total monthly PITI payment estimate.