Mortgage Calculator

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 with interest rates ranging from 8-10% per annum. 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.

• Down Payment: You pay 10-20% of the property value upfront; the rest is financed by the loan
• 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 hypothecated to the lender until the loan is fully repaid

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.

• Step 1: Enter the property value and down payment percentage
• Step 2: Input the loan interest rate and tenure
• Step 3: View the monthly EMI, total interest, and complete amortization schedule
• Step 4: Optionally add prepayments to see the impact on tenure and interest savings

• Section 24(b): Interest paid on home loan — deduction up to ₹2 lakh per year for self-occupied property
• Section 80C: Principal repayment — deduction up to ₹1.5 lakh per year
• Section 80EEA: Additional ₹1.5 lakh interest deduction for affordable housing (for loans sanctioned up to March 2022)
• Under Construction: Pre-EMI interest can be claimed in 5 equal installments after possession