Mortgage Calculator
Calculate your home loan EMI, total interest, and view a complete amortization schedule.
Principal vs Interest
Year-wise Breakdown
Amortization Schedule
| Period | EMI | Principal | Interest | Balance |
|---|
What is a Mortgage?
A mortgage is a loan specifically used to purchase real estate. The property itself serves as collateral for the loan. In India, home loans are offered by banks and housing finance companies at competitive interest rates, typically ranging from 8% to 12% per annum. The borrower repays the loan through EMIs (Equated Monthly Installments) over a period that can extend up to 30 years.
Understanding your mortgage payments before committing to a home purchase is crucial. Our mortgage calculator helps you see exactly how much you'll pay each month, the total interest over the loan term, and how your payments are split between principal and interest.
How is Mortgage EMI Calculated?
Mortgage EMI uses the same reducing balance formula as other loans:
Where P = Loan Amount (Home Price minus Down Payment), R = Monthly Interest Rate, N = Total number of monthly installments.
Example: For a home worth ₹50,00,000 with 20% down payment (₹10,00,000 loan of ₹40,00,000) at 8.5% for 20 years: Monthly EMI = ₹34,713, Total Interest = ₹43,31,200.
Factors Affecting Your Mortgage
- Property Value & Down Payment: A larger down payment means a smaller loan and lower EMI.
- Interest Rate: Even 0.25% difference matters significantly over 20-30 years.
- Loan Tenure: Longer tenure means lower EMI but much higher total interest.
- Credit Score: A score above 750 typically gets you the best rates.
- Type of Rate: Fixed rates offer stability; floating rates may save money long-term.
Types of Home Loans
| Type | Rate Range | Best For |
|---|---|---|
| Fixed Rate | 9% - 12% | Borrowers wanting predictable EMIs |
| Floating Rate | 8% - 10.5% | Those expecting rates to fall |
| Hybrid (Mixed) | 8.5% - 11% | Fixed for initial years, then floating |
| Home Construction | 8.5% - 11% | Building on owned land |
| Balance Transfer | 8% - 9.5% | Switching to a lower rate lender |
Tips for First-Time Home Buyers
- Save for a 20%+ down payment. This eliminates mortgage insurance requirements and gets you better rates.
- Check your credit score at least 6 months before applying. Fix any issues to get the best rate.
- Compare offers from at least 3-4 lenders. Rates can vary by 0.5-1% between banks.
- Factor in additional costs like stamp duty (5-7%), registration charges (1%), and maintenance.
- Keep EMI under 40% of income. This ensures comfortable repayment without financial stress.
- Consider tax benefits under Section 80C (principal up to ₹1.5L) and Section 24 (interest up to ₹2L).
- Don't max out your budget. Leave room for emergencies and future expenses.
Calculate Your Mortgage
Enter your home price and down payment above to see your exact monthly EMI and amortization schedule.
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