How is house loan EMI calculated?

EMI equals P×r×(1+r)^n divided by ((1+r)^n−1), where P is principal, r is the monthly rate, and n is the number of monthly payments.

Does prepayment reduce EMI or tenure?

It depends on the lender instruction. This calculator keeps the scheduled EMI and applies extra money to principal, which reduces tenure and interest.

Does this calculator use current bank rates?

No. Enter the rate quoted by the lender; rates and eligibility vary by borrower and product.

House Loan EMI Calculator

Calculate monthly housing-loan EMI, total interest, fees, rate-shock payments, and the exact interest and tenure saved by extra monthly or one-time prepayments.

Written and checked by TheToolNet Editorial Team · Last reviewed: September 27, 2026 · Editorial method

Neutral planning tool

No bank lead form, sponsored rate, or account is required. Enter the annual rate actually quoted to you.

Calculate house loan EMI and prepayment savings

House loan EMI formula

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)

P is the principal, r is the annual rate divided by 12 and 100, and n is tenure in months. This page uses a monthly reducing balance: each payment covers that month's interest first, then reduces principal.

Why this calculator goes beyond a basic EMI answer

Monthly EMI alone can hide the lifetime cost. The result separates principal, interest, fees, payoff time, and a ±1 percentage-point rate shock. It also calculates extra payments month by month instead of simply subtracting a lump sum from total interest.

Floating-rate loans can change

The RBI explains that rate resets may lead to a higher EMI, longer tenure, a combination of both, a switch to fixed rate, or prepayment options under the lender's policy. Recalculate when your rate changes and compare the lender's revised schedule. Source: RBI floating-rate EMI FAQ.

Plan the loan, not just the payment

Use the home loan affordability calculator to include non-EMI housing costs, the eligibility estimator for an income-based ceiling, or the Excel EMI formula builder.

Frequently asked questions

Does a lower EMI always mean a cheaper loan?

No. Extending tenure normally lowers the monthly payment but can substantially increase total interest.

How are extra payments handled?

The scheduled EMI stays unchanged and each extra amount reduces principal. This models tenure reduction; ask your lender whether it will instead recalculate EMI.

Are registration, insurance, or taxes included?

No. Add lender fees in the fee field, and budget property taxes, insurance, stamp duty, registration, maintenance, and legal costs separately.