Work out your home loan EMI, the total interest over the full tenure, and a year by year repayment schedule. Built for Indian home loans and current rates.
What tax benefit do I get on a home loan?
Under the old regime, section 24(b) allows a deduction of up to ₹2,00,000 a year on the interest for a self-occupied property, and section 80C allows up to ₹1,50,000 on the principal repaid, inside the shared 80C limit. The new regime removes both for a self-occupied house. Check which regime you are in before you count on the saving.
Should I prepay my home loan?
Usually yes, and as early as possible. A ₹5,00,000 prepayment five years into the loan above cuts the tenure from 20 years to 17 and saves about ₹10,69,000 in interest. Ask the bank to shorten the tenure rather than lower the EMI - that is where the saving lives.
Why is my early EMI almost all interest?
Interest is charged on the outstanding balance, which is highest at the start. In year one of a ₹50,00,000 loan at 8.5%, about ₹4,22,000 of your ₹5,20,694 in EMIs is interest and only ₹99,000 reduces the principal. The mix flips slowly, and by the final years almost every rupee is principal.
Floating or fixed rate?
Almost all Indian home loans are floating and linked to the repo rate, so the EMI or tenure moves when the RBI moves. Fixed rate loans cost more up front and can carry a foreclosure charge, which floating rate loans to individuals cannot. Most borrowers take floating.
How much home loan can I get on my salary?
Lenders usually keep all your EMIs under 40% to 50% of net monthly income, and lend up to 75% to 90% of the property value depending on the loan size. On a ₹1,00,000 take-home, an EMI near ₹45,000 is the practical ceiling, which supports roughly ₹50,00,000 over 20 years at 8.5%.
Does a longer tenure make the loan cheaper?
It makes the EMI smaller and the loan far more expensive. The same ₹50,00,000 at 8.5% costs ₹54,13,879 in interest over 20 years and ₹88,40,443 over 30 years. Take the shortest tenure your monthly budget can carry comfortably.
Is the EMI here the same as what my bank quotes?
It will be within a few rupees. Banks sometimes charge interest from the disbursement date rather than the first of the month, and processing fees, legal charges, and property insurance sit outside the EMI entirely.