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Next toolsAssumptions and methodology
Transparent calculation notes for Mortgage Calculator.
Formula used
The calculator estimates loan amount after down payment, then applies standard EMI math and upfront property charges.
Methodology
- Calculate down payment, stamp duty, and registration from property value.
- Compute the loan amount and monthly EMI.
- Estimate total interest, total payment, and ownership cost.
Core assumptions
- Interest rate, tenure, and property charges stay constant.
- Loan follows reducing balance EMI repayment.
- Down payment percentage is applied to property value.
Not included
- Maintenance, insurance, brokerage, tax benefits, rate resets, and lender fees are excluded.
- Actual charges vary by state, city, and property type.
About Mortgage Calculator
Guide1What is a Mortgage?
A mortgage is a loan taken to purchase or construct a residential property, where the property itself serves as collateral. In India, home loans (the common term for mortgages) are offered by banks, housing finance companies, and NBFCs at competitive interest rates.
Home loans in India typically have tenures of 15-30 years. Banks currently quote about 7.25–8.5% a year for borrowers with good credit (SBI 7.25–8.45%, September 2026). Most Indian home loans are on a floating rate basis, meaning the EMI can change when benchmark rates (such as the repo rate) are revised.
2How a Mortgage Works
- Down Payment: You pay at least 10–25% of the property value upfront, depending on the loan size, and the rest is financed by the loan. RBI caps a home loan at 90% of the value for loans up to ₹30 lakh, 80% up to ₹75 lakh and 75% above
- EMI Payments: You repay the loan in monthly installments comprising principal and interest
- Amortization: In the early years, most of the EMI goes toward interest; over time, the principal component increases
- Security: The property is mortgaged to the lender (usually by depositing the title documents) until the loan is fully repaid
3Mortgage EMI Formula
The EMI for a mortgage is calculated as:
EMI = P × r × (1 + r)^n / [(1 + r)^n - 1]
- P = Loan principal (property value minus down payment)
- r = Monthly interest rate
- n = Total number of monthly installments
For a ₹50 lakh loan at 8.5% for 20 years, the EMI would be approximately ₹43,391 with total interest payment of approximately ₹54.1 lakh over the loan tenure.
4How to Use This Mortgage Calculator
- Step 1: Enter the property value and down payment percentage (10–25% at least, depending on the loan size; the calculator shows the RBI minimum for your price)
- Step 2: Input the loan interest rate and tenure
- Step 3: View the loan amount and loan-to-value, the monthly EMI, total interest, and complete amortization schedule
- Step 4: To see what prepayments save, use the Home Loan Prepayment Calculator
5Tax Benefits on Home Loans in India
For a self-occupied home these benefits apply only under the old tax regime. From 1 April 2026 the Income-tax Act, 2025 applies:
- Interest: Home-loan interest is deductible under section 22 (formerly 24(b)), up to ₹2 lakh a year for a self-occupied home
- Principal: Repayment counts toward the ₹1.5 lakh limit under section 123 (formerly 80C)
- Under construction: Interest paid before completion is still claimed in 5 equal parts
- Section 80EEA: Applied only to loans sanctioned by 31 March 2022
- New regime: Under the default new regime a self-occupied home gets no interest deduction