Home Loan Calculator
Plan your dream home with our advanced Mortgage EMI calculator.
Monthly EMI
₹ 34,713
Buying a home is often the single largest financial transaction in an individual's life. While the joy of owning a home is unparalleled, the financial burden of a 20-year loan can be daunting. Our Home Loan EMI Calculator helps you demystify the numbers, giving you a crystal-clear picture of your monthly obligations.
Beyond just calculating the EMI, understanding the Interest vs Principal breakdown is crucial. In the initial years, a shocking 70-80% of your EMI goes purely towards interest, with very little principal repayment.
🏠 The "One Extra EMI" Hack
Most people pay their EMIs for 20 years without deviation. Smart borrowers do this:
Prepay just one extra EMI amount every year.
Impact: You can slash your loan tenure by nearly 4 to 5 years and save lakhs in interest payments.
Home Loan Tax Benefits (Old Regime)
If you stick to the Old Tax Regime, a home loan is one of the most powerful tax-saving tools available. Here are the sections you can claim:
| Section | Component | Max Deduction |
|---|---|---|
| Sec 24(b) | Interest Paid | ₹2 Lakhs |
| Sec 80C | Principal Repayment | ₹1.5 Lakhs |
| Sec 80EEA | Addl. Interest (First Time Buyers) | ₹1.5 Lakhs |
Note: Under the New Tax Regime (default), these deductions are NOT available (except for rented-out properties).
Fixed vs Floating Rate: Which to choose?
Almost all financial advisors recommend Floating Rate loans (Repo Rate Linked) for home buyers.
- Cheaper: Floating rates are generally 1-2% lower than fixed rates.
- No Penalty: As per RBI rules, there is Zero Prepayment Penalty on floating rate loans. This flexibility is crucial if you plan to pay off your loan early.
- Transparency: Rates move automatically with the RBI Repo Rate, ensuring you benefit when rates fall.
Frequently Asked Questions
What is a good CIBIL score for a Home Loan?
A score of 750+ is considered excellent. It gives you the power to negotiate the lowest interest rate spread with the bank.
Should I reduce EMI or Tenure when prepaying?
Always reduce the <strong>Tenure</strong>. Reducing the EMI gives you short-term cash flow relief but saves very little interest. Reducing tenure drastically cuts your total interest cost.
Is property insurance mandatory?
No, RBI does not mandate it. However, banks strongly push for it. While it's good to have insurance, you are not obliged to buy the expensive policy the bank sells. You can buy a cheaper term insurance or property insurance from the open market.