How much will your home loan really cost?
A home loan is usually the largest and longest loan you'll ever take, so small differences in rate or tenure add up to lakhs. This calculator starts from the property price and down payment, since banks typically lend 75–90% of the property's value depending on the loan size, and you pay the rest yourself.
Worked example
EMI = P × i × (1 + i)^n ÷ [(1 + i)^n − 1]Tax benefits on a home loan
Under the old tax regime, for a self-occupied home you can deduct up to ₹2 lakh of interest a year and include principal repayment in the ₹1.5 lakh investment deduction. In this example, the year-one saving would be about ₹99,657. The Income-tax Act, 2025 (in force from April 2026) renumbered these sections but kept the benefits.
Under the new regime, there is no deduction for a self-occupied home loan. If you've let out the property, interest remains deductible against rental income. Compare both regimes with your full numbers on the income tax calculator.
Floating rates and the repo rate
Most home loans today are floating-rate loans linked to an external benchmark, usually the RBI repo rate. When the RBI changes the repo rate, your rate moves too, typically within three months. Banks usually change the tenure rather than the EMI, so a rate hike can quietly add years to your loan. Check your statement after every rate change.
- No prepayment penalty: RBI rules bar penalties on floating-rate home loans taken by individuals.
- Balance transfer: if another bank offers a lower rate, moving the loan can save lakhs. Check with the balance transfer calculator.
- Extra costs: stamp duty and registration (often 5–8% of the price), processing fees and interiors are not covered by the loan.
Frequently asked questions
How much home loan can I get?
Banks usually allow total EMIs of up to 50–60% of your net monthly income. Estimate it on the loan eligibility calculator.
Is the tax benefit available under the new regime?
Not for a self-occupied home. Interest on a let-out property can still be set off against rental income.
Should I choose a 20 or 30-year tenure?
A longer tenure lowers the EMI but greatly increases interest. Many borrowers take 25–30 years for flexibility and prepay aggressively when they can.
Official references: RBI – Notifications on floating-rate loans · Income Tax Department