Loan & Mortgage Calculator

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Calculate your monthly EMI (Equated Monthly Instalment), total interest payable, and overall cost of the loan.

Loan Amount (Principal)

₹

₹20L

Annual Interest Rate

% p.a.

8.5%

Loan Tenure

20 yrs

Processing Fee (optional)

Charged once upfront on principal

What is EMI?

EMI (Equated Monthly Instalment) is a fixed monthly payment made by a borrower to a lender on a set date. Each EMI consists of two parts: a principal component (repaying the borrowed amount) and an interest component (cost of borrowing). In the early months of a loan, the interest portion is higher; as the loan matures, the principal portion increases. This is called an amortizing loan structure.

EMI Formula

The standard EMI formula used by all banks is:

EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]

P = Principal loan amount
r = Monthly interest rate (Annual Rate ÷ 12 ÷ 100)
n = Total number of monthly instalments (Tenure in years × 12)

Home Loan Interest Rates in India (2026)

SBI Home Loan: 8.50% – 9.65% p.a.
HDFC Bank: 8.70% – 9.95% p.a.
ICICI Bank: 8.75% – 10.05% p.a.
LIC Housing Finance: 8.50% – 9.75% p.a.
Axis Bank: 8.75% – 9.10% p.a.

Tips to Reduce Your EMI

Make a larger down payment — reducing the principal directly reduces your EMI.
Opt for a longer tenure — a 30-year tenure gives a lower EMI than 20 years, though total interest paid will be higher.
Negotiate a lower rate — even 0.5% less can save lakhs over a 20-year home loan.
Make prepayments — partial prepayments reduce the outstanding principal and can significantly cut total interest.
Balance transfer — if another bank offers a lower rate, transferring your loan can reduce future EMIs.

FOIR — Fixed Obligation to Income Ratio

Banks in India use FOIR (also called Debt-to-Income or DBR — Debt Burden Ratio) to assess your loan eligibility. It represents the percentage of your monthly income that goes toward loan repayments. Most Indian banks cap FOIR at 40–50%, meaning if you earn ₹80,000/month, your total EMI obligations should not exceed ₹32,000–₹40,000. This calculator uses FOIR to estimate your maximum eligible loan amount in the Affordability section.