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