A home loan EMI is the fixed monthly amount that repays both principal and interest over the loan tenure. This calculator uses the standard reducing-balance formula. Example: a ₹25 lakh loan at 8.5% for 20 years has an EMI of about ₹21,696. Over 240 months you pay about ₹27.07 lakh in interest, so the total repaid is about ₹52.07 lakh.
Home Loan EMI Calculator
Your estimate
- Total payment
- ₹52,06,939
- Loan amount
- ₹25,00,000
- Yearly outgo (12 EMIs)
- ₹2,60,347
- Number of EMIs
- 240
- Interest as % of loan
- 108.28%
- Interest paid in year 1can be claimed under Sec 24(b) for a self-occupied home (old regime, limits apply)
- ₹2,10,591
- Principal₹25,00,00048%
- Total interest₹27,06,93952%
Year-wise repayment schedule
| Year | Principal paid | Interest paid | Balance at year end |
|---|---|---|---|
| 1 | ₹49,756 | ₹2,10,591 | ₹24,50,244 |
| 2 | ₹54,154 | ₹2,06,193 | ₹23,96,091 |
| 3 | ₹58,940 | ₹2,01,407 | ₹23,37,150 |
| 4 | ₹64,150 | ₹1,96,197 | ₹22,73,000 |
| 5 | ₹69,820 | ₹1,90,527 | ₹22,03,180 |
| 6 | ₹75,992 | ₹1,84,355 | ₹21,27,188 |
| 7 | ₹82,709 | ₹1,77,638 | ₹20,44,479 |
| 8 | ₹90,020 | ₹1,70,327 | ₹19,54,459 |
| 9 | ₹97,977 | ₹1,62,370 | ₹18,56,482 |
| 10 | ₹1,06,637 | ₹1,53,710 | ₹17,49,846 |
| 11 | ₹1,16,063 | ₹1,44,284 | ₹16,33,783 |
| 12 | ₹1,26,321 | ₹1,34,026 | ₹15,07,462 |
| 13 | ₹1,37,487 | ₹1,22,860 | ₹13,69,974 |
| 14 | ₹1,49,640 | ₹1,10,707 | ₹12,20,335 |
| 15 | ₹1,62,866 | ₹97,480 | ₹10,57,468 |
| 16 | ₹1,77,262 | ₹83,085 | ₹8,80,206 |
| 17 | ₹1,92,931 | ₹67,416 | ₹6,87,275 |
| 18 | ₹2,09,984 | ₹50,363 | ₹4,77,291 |
| 19 | ₹2,28,545 | ₹31,802 | ₹2,48,746 |
| 20 | ₹2,48,746 | ₹11,601 | ₹0 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What does this home loan EMI calculator do?
When you borrow for a house, the first question is simple: how much will leave my account every month? This calculator answers it in one step. Enter the loan amount, the interest rate and the tenure. It shows your monthly EMI, the total interest you will pay, the total repayment and a year-wise schedule of principal, interest and outstanding balance.
It is useful whether you are comparing an LIC Housing Finance offer with a bank, planning a balance transfer or deciding between a 15-year and a 20-year loan. We are an independent site. The tool does not fetch live rates, so enter the rate you have actually been offered.
How the EMI is worked out
Home loans in India use the reducing balance method. Each month the lender charges interest on the loan still outstanding, and the rest of your EMI pays down principal. The fixed EMI that clears the loan exactly on time is:
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
- P = loan amount
- r = monthly rate = annual rate ÷ 12 ÷ 100
- n = number of monthly instalments = years × 12
The calculator then runs the loan month by month to build the schedule. Adding up all EMIs gives the total repayment. Subtracting the loan amount from that gives the total interest.
Worked example
Say you take a ₹25 lakh loan at 8.5% for 20 years:
| Item | Amount |
|---|---|
| Monthly EMI | ₹21,696 |
| Number of EMIs | 240 |
| Total interest | ₹27,06,939 |
| Total repayment | ₹52,06,939 |
| Interest paid in year 1 | ₹2,10,591 |
Over the full term, the interest is about 108% of the amount borrowed. That is normal for a 20-year loan, but it shows why rate and tenure matter so much.
What a 1% lower rate does. The same loan at 7.5% has an EMI of about ₹20,140 and total interest of about ₹23,33,559. That saves about ₹1,556 a month and about ₹3.73 lakh overall.
What a shorter tenure does. A ₹50 lakh loan at 8.5% costs about ₹43,391 a month over 20 years, with total interest of about ₹54,13,879. Over 15 years the EMI is about ₹49,237, but interest drops to about ₹38,62,656. You pay roughly ₹5,846 more a month and save about ₹15.5 lakh.
Tip: each time you get a salary hike, increase your EMI or make a part-prepayment. Even one extra EMI a year can cut several years off a 20-year loan.
EMI for every ₹1 lakh borrowed
A quick way to size a loan is to know the EMI per ₹1 lakh. At 8.5%, the calculator gives:
| Tenure | EMI per ₹1 lakh | Interest per ₹1 lakh over the loan |
|---|---|---|
| 10 years | ₹1,240 | ₹48,783 |
| 15 years | ₹985 | ₹77,253 |
| 20 years | ₹868 | ₹1,08,278 |
| 25 years | ₹805 | ₹1,41,568 |
| 30 years | ₹769 | ₹1,76,809 |
Multiply by the lakhs you plan to borrow for a fast estimate. Going from 20 to 30 years cuts the EMI by only about ₹99 per lakh, but adds about ₹68,500 of interest per lakh. Long tenures buy a small monthly saving at a very high total cost.
How to read the results
- Monthly EMI: the fixed amount debited each month. Budget for it to stay the same unless the floating rate changes.
- Total interest: the full cost of borrowing. Compare this number, not just the EMI, when you choose a tenure.
- Total payment: principal plus interest over the whole tenure.
- Yearly outgo: 12 EMIs, useful for annual budgeting.
- Interest as % of loan: a quick way to see how expensive a tenure is.
- Year-wise schedule: open the table under the results. In early years the interest column is large. By the last few years almost the entire EMI goes to principal.
- Donut chart: principal vs interest at a glance.
Tips and common mistakes
- Floating rates change. Most home loans are linked to a benchmark such as the repo rate. If the rate rises, lenders usually extend the tenure rather than raise the EMI, so the total interest goes up quietly. Recalculate whenever your rate changes.
- Keep the EMI affordable. Many lenders cap total EMIs at 40–50% of net income. Staying well below that leaves room for emergencies.
- Count all the costs. Processing fees, legal and valuation charges, stamp duty and property insurance are not part of the EMI. Keep a separate budget for them.
- Protect the loan. A home loan is a large liability for your family. A term plan with cover at least equal to the loan amount means your family can clear it if something happens to you. Check the cost with our term plan calculator.
- Don’t break long-term savings to prepay. Surrendering an insurance policy early to prepay a loan often loses money. Compare the options with the surrender value calculator first.
Related calculators
- Build a down-payment fund with the SIP calculator.
- Park an emergency buffer and see what it earns with the FD calculator.
Frequently asked questions
How is the EMI on an LIC home loan calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the yearly interest rate divided by 12 and 100, and n is the number of monthly instalments. The same formula is used by all banks and housing finance companies for fixed-EMI loans.
What is the EMI for a ₹25 lakh home loan for 20 years?
At 8.5% a year, the EMI is about ₹21,696 and total interest is about ₹27.07 lakh. At 7.5% the EMI falls to about ₹20,140 and interest to about ₹23.34 lakh. Enter the rate offered to you for an exact figure.
What is the EMI for a ₹50 lakh home loan?
At 8.5%, a ₹50 lakh loan costs about ₹43,391 a month over 20 years or about ₹49,237 over 15 years. The shorter tenure raises the EMI by about ₹5,846 but saves about ₹15.5 lakh in interest.
Is this the LIC Housing Finance calculator?
No. This is an independent calculator. LIC home loans are offered by LIC Housing Finance Ltd, a separate company promoted by LIC. The EMI formula is standard, so the result matches any lender's EMI for the same amount, rate and tenure. Processing fees and insurance are not included.
Does a longer tenure reduce the total cost?
No. A longer tenure lowers the EMI but raises the total interest, because the balance stays outstanding for longer. Choose the shortest tenure whose EMI fits comfortably in your budget, ideally below 40% of take-home pay.
Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is highest at the start. On a ₹25 lakh loan at 8.5% for 20 years, about ₹2.11 lakh of the first year's ₹2.60 lakh in EMIs is interest. The principal share grows every year.
Can I claim tax benefits on home loan EMI?
Under the old tax regime, principal repayment qualifies under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) (up to ₹1.5 lakh with other items) and interest on a self-occupied home under Section 24(b) up to ₹2 lakh a year. Conditions apply, and the new regime does not allow these deductions for a self-occupied home.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.