How this home loan calculation works
- Loan amount = property price − down payment.
- Down payment % = down payment ÷ property price × 100, and LTV = loan amount ÷ property price × 100. The two always add up to 100%.
- EMI uses the standard reducing-balance formula: EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1], where P is the loan amount, r the monthly rate and n the number of months.
- Total upfront cash = down payment + stamp duty + registration + other costs you enter.
- Total cost of buying = upfront cash + every EMI over the full tenure.
Example: buying an ₹80 lakh home
Suppose you buy an ₹80 lakh home with a 20% down payment, borrow the rest at 8.5% for 20 years, and your purchase costs come to ₹6 lakh. These cost figures are illustrative only; your state's rates will differ.
| Property price | ₹80,00,000 |
|---|---|
| Down payment (20%) | ₹16,00,000 |
| Loan amount (LTV 80%) | ₹64,00,000 |
| Monthly EMI (8.5%, 20 years) | ₹55,541 |
| Total interest | ₹69,29,765 |
| Stamp duty + registration + other (example) | ₹6,00,000 |
| Total upfront cash | ₹22,00,000 |
| Total cost of buying with the loan | ₹1,55,29,765 |
Two things stand out. The cash needed on day one is ₹22 lakh, not ₹16 lakh, once purchase costs are included. And over 20 years, interest of about ₹69 lakh nearly matches the price of the home itself.
Understanding loan-to-value limits
Banks and housing finance companies in India lend only up to a set share of a property's value. RBI's guidelines generally cap LTV at 90% for loans up to ₹30 lakh, 80% for loans above ₹30 lakh and up to ₹75 lakh, and 75% for loans above ₹75 lakh. The calculator flags your LTV if it is above the usual limit for your loan size. Lenders can be stricter and may also limit the loan based on your income and existing EMIs.
Factors that change your result
Down payment
Each extra rupee of down payment is a rupee you do not borrow, so you avoid paying interest on it for the full tenure. In the example above, moving from 20% to 25% down cuts the loan by ₹4 lakh.
Interest rate and tenure
These work exactly as they do for any loan: higher rates raise both EMI and total interest, while longer tenures lower the EMI but raise total interest. Most Indian home loans are floating-rate, so your rate can change over the years.
Purchase costs
Stamp duty, registration and incidental costs are paid upfront and usually not financed. They can add a meaningful percentage to the property price. Get the current figures from your state's official sources or the builder's cost sheet before you finalise a budget.
Tips before you apply
- Budget for the full upfront amount, not just the down payment, and keep an emergency fund separately.
- Get a written cost sheet from the seller listing every charge, including parking, club, GST and maintenance deposits.
- Compare lenders on rate, fees and reset terms, not just the advertised starting rate.
- Stress-test your EMI at a rate 1–2 percentage points higher to make sure it stays affordable if rates rise.
Already know your loan amount? The Home Loan EMI Calculator focuses on EMI, interest and repayment schedule, with quick presets for common loan sizes.