Work out your home loan EMI or repayment, then add a monthly prepayment or a one-off lump sum to see how much interest and time you save. Works in rupees, pounds, Australian dollars and other currencies.
How to use the home loan calculator
- Check the currency (it follows your device's region), then enter the loan amount, the interest rate and the tenure in years or months.
- Read your EMI or monthly repayment, the total interest and the month the loan ends.
- Under Prepayments, add an amount to pay extra every month and/or a one-off lump sum with the month you'll pay it.
- Compare the loan with and without prepayments, and open the yearly amortisation table to see the balance fall.
EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is the loan amount, r the interest rate per month and n the number of monthly instalments. Each EMI first pays the month's interest on what you still owe, and the rest repays the loan. A prepayment goes straight to the balance, so every later EMI carries less interest and more repayment, and the loan ends early.
Worked example: ₹50 lakh for 20 years at 8.5%
The EMI is ₹43,391. Over 240 months you pay ₹1,04,13,879: the ₹50,00,000 loan plus ₹54,13,879 of interest, more than the loan itself. Prepaying ₹5,000 a month on top of the EMI clears the loan in 15 years 7 months instead of 20 years and saves ₹13,89,250 in interest. A single ₹5,00,000 prepayment in month 12 saves ₹16,03,691 and 4 years; the same amount in month 120 saves ₹5,71,382, because there are fewer years of interest left to save.
UK and Australian examples
A £200,000 repayment mortgage at 4.5% over 25 years costs £1,111.66 a month. Overpaying £100 a month cuts 3 years 6 months off the term and saves £21,142 in interest. In Australia, $600,000 at 6% over 30 years is $3,597.30 a month, or $1,659.50 a fortnight on a true fortnightly schedule.
In the US, the mortgage calculator adds property tax, insurance and PMI, and covers UK, Canadian and Australian mortgages too. To see how much a bank may lend on your salary, use the home loan eligibility calculator; for car and personal loans, the EMI calculator and loan calculator.
Frequently asked questions
How is a home loan EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly interest rate (the yearly rate ÷ 12 ÷ 100) and n the number of months. ₹50 lakh at 8.5% for 20 years gives r = 0.708% and n = 240, so the EMI is ₹43,391 and the interest over the loan is ₹54,13,879.
Is it better to prepay or to invest the money?
Prepaying saves interest at your loan rate, with no risk. Investing makes sense only if you expect a higher return after tax than the loan rate, and you accept the risk. In India, home loan interest can also lower your tax in the old regime, which reduces the benefit of prepaying. Many people keep an emergency fund first and prepay from bonuses.
Should I reduce my EMI or my tenure after a prepayment?
Reducing the tenure saves more interest, because you keep paying the same EMI and the loan ends sooner. This calculator shows that option: a ₹5,00,000 prepayment in month 12 on the example loan saves ₹16,03,691 and 4 years. Lowering the EMI instead eases your monthly budget but saves less.
Are there charges for prepaying a home loan?
In India, RBI rules don't allow banks and housing finance companies to charge individuals for prepaying or closing a floating-rate home loan; fixed-rate loans may carry a charge, which must be in your loan documents. In the UK, fixed-rate mortgages usually limit how much you can overpay each year before an early repayment charge. In Australia, variable loans normally allow extra repayments, while fixed loans often cap them. Check your own loan terms.
Does paying fortnightly help?
Paying half your monthly repayment every fortnight means 26 half-payments, the same as 13 monthly repayments a year, so the loan ends sooner. On $600,000 at 6% over 30 years, $1,798.65 a fortnight instead of $3,597.30 a month clears the loan 5 years 6 months early and saves about $148,872 in interest. Choose Fortnightly and enter the difference as an extra repayment to see it for your loan.