Home Loan EMI Calculator

Floating rate moves with a benchmark (for new loans, usually the RBI repo rate through EBLR). When the repo rate falls your rate falls, and when it rises, so does yours.

Fixed rate stays the same for a set period. It usually starts 1–2.5% higher than floating, and many "fixed" home loans are fixed only for the first 2–5 years before converting to floating.

Over a 20-year loan, rates usually go through several up and down cycles. Most borrowers end up paying less with floating, as long as their budget can absorb a 1–2% rise. Use the Rate change tab to test that.

Your floating rate = benchmark + spread. The spread is fixed in your loan agreement (unless your credit risk changes); the benchmark moves.

• EBLR / RLLR (External Benchmark / Repo-Linked Lending Rate): mandatory for new floating-rate retail loans from banks since 1 October 2019. Most banks use the RBI repo rate. Rate changes pass through quickly and resets happen at least once every 3 months. This is the most transparent option.
• MCLR (Marginal Cost of Funds based Lending Rate): used from April 2016 until EBLR took over. It's set by the bank from its own cost of funds, usually with a 6- or 12-month reset, so cuts reach you slowly.
• Base rate / BPLR: older benchmarks (pre-2016). If your loan is still on one, you are very likely overpaying.

On an MCLR or base-rate loan, ask your bank to switch you to EBLR. It usually costs a small fee and can cut your rate by 0.25–1% or more. Check the Balance transfer tab to see whether the fee pays off.

Source: RBI: External Benchmark Based Lending (4 Sep 2019)

By default, most banks keep your EMI the same and extend the tenure. It feels painless, but it's the most expensive option because you pay interest for many more months.

RBI's 2023 rules on resetting floating rates require lenders to:

• tell you clearly when your EMI or tenure changes,
• offer you a choice to increase the EMI, extend the tenure, or both, or to prepay,
• let you switch to a fixed rate at reset (with disclosed charges),
• make sure tenure extension doesn't cause negative amortisation (where your EMI doesn't even cover the interest, so the loan grows).

Choosing to raise the EMI instead of extending the tenure usually saves lakhs of rupees in interest. The Rate change tab shows both side by side.

Source: RBI: Reset of floating interest rate on EMI-based personal loans (18 Aug 2023)

When you part-pay, the bank asks whether to reduce your tenure (same EMI, loan ends sooner) or your EMI (same end date, lower monthly payment).

• Reduce tenure saves far more interest. Choose it if your current EMI is comfortable.
• Reduce EMI frees up monthly cash flow. Choose it if money is tight or you want to invest the difference.

Prepaying early in the loan saves the most, because that's when most of each EMI is interest.

RBI does not allow lenders to charge prepayment or foreclosure penalties on floating-rate loans taken by individuals for non-business purposes. For loans sanctioned or renewed from 1 January 2026, its 2025 Directions also bar these charges on most floating-rate business loans to individuals and small businesses.

Source: RBI: Pre-payment Charges on Loans Directions, 2025 (2 Jul 2025)

• Interest deduction: under the old tax regime, interest up to ₹2 lakh a year on a self-occupied home has been deductible (Section 24(b) of the Income-tax Act, 1961).
• Principal deduction: under the old regime, principal repayment up to ₹1.5 lakh a year has counted towards the Section 80C limit, shared with other 80C items.
• The new tax regime doesn't allow these deductions for a self-occupied home.
• The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbered these sections. Check the current rules or ask a tax advisor before you claim. The My Loans tracker shows your interest and principal for each financial year to help.
• Loan-to-value (RBI caps): up to 90% of the property value for loans up to ₹30 lakh, 80% for ₹30–75 lakh, and 75% above ₹75 lakh. Stamp duty and registration are generally not financed.
• Charges to compare: processing fee (often 0.25–1%), legal and valuation fees, and conversion fees for switching benchmarks.

Your EMI stays the same, but its make-up changes every month. Early on, most of it is interest, because interest is charged on a large balance. Later, most of it repays principal.

On a typical ₹50 lakh, 20-year home loan at 8.5%, about 81% of what you pay in the first year goes to interest. The insights show this for your numbers, along with the month when principal first overtakes interest.

• One extra EMI a year: on a typical ₹50 lakh, 20-year home loan at 8.5%, it closes the loan 3 yrs 3 mos early and saves about ₹10.29 L in interest.
• Raise your EMI by 5% each year as your income grows: on the same loan that saves about ₹19.52 L and finishes 7 yrs 9 mos early.
• Keep your credit score high (750+). It decides the spread your lender adds on top of the benchmark rate.
• Re-check your rate every year or two. If new customers get a better rate, ask your lender for a reset or move to a lower spread.

The EMI is ₹43,391 a month for 240 months. You would pay ₹54,13,879 in interest, ₹1,04,13,879 in total. Change the amount, rate or tenure above to see your own figures.

Reducing the tenure saves more interest. On this loan, prepaying ₹5,00,000 after 12 EMIs saves ₹16,03,691 if you keep the EMI and shorten the tenure, but only ₹5,09,408 if you keep the tenure and lower the EMI.

On a repo-linked (EBLR) floating loan your rate rises by the same amount at the next reset, which happens at least every 3 months. On this loan, a 0.25% rise after one year would either extend the tenure by 11 mos at the same EMI, or raise the EMI by ₹768 to keep the same end date. Lenders must let you choose.

A 0.5% fee on this home loan means you receive ₹49,75,000 but repay the same EMIs, so the true annual rate is 8.57% instead of 8.5%. Use the true rate to compare offers.

RBI does not allow prepayment or foreclosure charges on floating-rate loans taken by individuals for personal (non-business) purposes. For loans sanctioned from 1 January 2026, most banks and larger NBFCs also cannot charge them on floating-rate business loans to individuals and small businesses.