Home Loan
EMI Calculator
| Year | Principal Paid (₹) | Interest Paid (₹) | Balance Remaining (₹) |
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Understanding Your EMI Math in 2026
If you look closely at your amortization schedule (by clicking the button above), you will notice a critical reality of banking: during the first 5 to 7 years of your home loan, nearly 70% to 80% of your EMI goes purely toward paying the bank's interest. Very little goes toward reducing your actual principal debt.
Because floating-rate home loans in India have zero prepayment penalties, try to prepay just 5% of your total principal amount every year (using your annual bonus or matured investments). Doing this consistently can reduce a standard 20-year loan down to just 12 years, wiping out massive amounts of total interest!
Also, remember that you can claim massive tax deductions on your EMI payments. You can claim up to ₹1.5 Lakhs against Principal repayment under Section 80C, and up to ₹2 Lakhs against Interest under Section 24(b). Read our Real Estate Tax Benefits Guide to learn how to structure this.
The RBI Repo Rate & Your Affordability
The interest rate slider in the calculator above dictates your purchasing power. In 2026, the stabilization of the RBI repo rate has made home loans highly affordable, generally hovering between 8.3% and 9.5% depending on your CIBIL score.
The FOIR Limit
Banks enforce a Fixed Obligation to Income Ratio. Your total EMIs must not exceed 50% of your net monthly salary. Ensure your calculated EMI fits this rule.
The Down Payment
The RBI mandates banks can only finance 80% to 90% of the property value. You must source the remaining 10-20% yourself.
Frequently Asked Questions
Assuming a standard 20% down payment (₹9.4 Lakhs), your required loan amount for a ₹47 Lakh property would be ₹37.6 Lakhs. At an 8.5% interest rate for a tenure of 20 years, your estimated EMI would be ₹32,629 per month.