How to Calculate Home Loan EMI: Formula, Examples & EMI Table (2026)

Buying a home is the biggest purchase most families ever make, and the home loan EMI decides how comfortable the next 20 years will feel. Yet most borrowers simply accept the number the bank quotes. In this guide you will learn how to calculate home loan EMI yourself using the EMI formula, see ready-made EMI tables for ₹20 lakh to ₹1 crore at 2026 interest rates, understand how every EMI is split between principal and interest, and discover practical ways to reduce your home loan EMI and total interest.

What Is EMI in a Home Loan?

EMI stands for Equated Monthly Instalment – the fixed amount you pay your bank every month until the home loan is fully repaid. "Equated" means every instalment is the same amount (as long as the interest rate does not change), even though what happens inside each payment changes over time.

Each EMI has two parts:

• Interest – the bank's charge for lending you money, calculated on the loan amount still outstanding.
• Principal – the part that actually reduces your loan.

Indian banks calculate home loan interest on a reducing balance method: interest is charged only on the balance left after each payment. That is why the interest part is large at the start and becomes smaller every month, while the principal part keeps growing. We will see exactly how this works in the amortization section below.

The Home Loan EMI Calculation Formula

Every bank, NBFC and EMI calculator uses the same standard EMI calculation formula:

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

• P = principal, the loan amount you borrow
• r = monthly interest rate = annual rate ÷ 12 ÷ 100
• n = tenure in months = years × 12

The formula spreads the loan and all future interest into equal monthly payments so that the balance reaches exactly zero with the last EMI.

EMI Calculation Example: ₹30 Lakh Home Loan Step by Step

Let us calculate the home loan EMI for 30 lakh at 8% per year for 20 years – a very common loan in 2026.

1. Loan amount (P) = ₹30,00,000
2. Monthly rate (r) = 8 ÷ 12 ÷ 100 = 0.006667
3. Number of EMIs (n) = 20 × 12 = 240
4. (1 + r)ⁿ = (1.006667)²⁴⁰ ≈ 4.9268
5. EMI = 30,00,000 × 0.006667 × 4.9268 ÷ (4.9268 − 1) ≈ ₹25,093

Over 240 months you will pay ₹25,093 × 240 = ₹60,22,368 in total. Of this, ₹30,00,000 is the original loan and ₹30,22,368 is interest – slightly more than the amount you borrowed. That single fact is why the interest rate and tenure matter so much.

EMI Formula in Excel and Google Sheets

You do not need to do the powers by hand. Both Excel and Google Sheets have a built-in PMT function that applies the EMI formula:

=PMT(8%/12, 240, -3000000)

This returns ₹25,093.20. The three inputs are the monthly rate, the number of months and the loan amount (entered as a negative number so the answer is positive). To find how much of a particular EMI is interest, use =IPMT(8%/12, month_no, 240, -3000000), and for the principal part use =PPMT(…) with the same inputs. Our EMI calculator shows this full table for you automatically.

EMI Per Lakh: Quick Reference Table

A handy shortcut is the EMI per lakh – the monthly instalment for every ₹1,00,000 you borrow. Multiply it by your loan amount in lakhs to estimate your EMI instantly. For example, at 8% for 20 years the EMI per lakh is ₹836, so a ₹45 lakh loan costs about 45 × 836 = ₹37,620 a month.

Home Loan EMI Table: ₹20 Lakh to ₹1 Crore at 8%

Here are the EMIs for popular loan amounts at 8% a year, including the home loan EMI for 20 lakh, 50 lakh home loan EMI and 1 crore home loan EMI:

Your actual rate may be higher or lower depending on your lender and credit score – plug your own numbers into the EMI calculator for an exact figure.

Principal and Interest Breakup: Your Amortization Schedule

A home loan amortization schedule shows, month by month, how much of each EMI goes to interest and how much to principal, and the balance left afterwards. For the ₹30 lakh loan at 8% for 20 years:

• In the first month, interest is 30,00,000 × 0.006667 = ₹20,000, so only ₹5,093 of your ₹25,093 EMI reduces the loan.
• In the first year, you pay about ₹2,37,708 in interest and only ₹63,410 in principal. After 12 EMIs you still owe ₹29,36,590.
• Around the halfway point the split starts to even out, and in the final years almost the whole EMI goes to principal.

This front-loading of interest is exactly why prepaying in the early years saves so much money.

What Affects Your Home Loan EMI?

1. Loan amount

EMI rises in direct proportion to the loan. Doubling the loan doubles the EMI. A bigger down payment is the simplest way to lower both EMI and interest.

2. Interest rate

Even small rate changes matter over 20 years. On a ₹50 lakh loan for 20 years, the EMI is ₹43,391 at 8.5%, ₹42,603 at 8.25% and ₹41,822 at 8% – a difference of more than ₹1,500 a month and about ₹3.8 lakh over the full term between 8.5% and 8%.

3. Home loan tenure

A longer home loan tenure lowers the EMI but sharply increases the total interest:

In the 30 year vs 20 year home loan choice, the 30-year loan saves about ₹5,100 a month but costs roughly ₹31.7 lakh more in interest. A good middle path is to take the longer tenure for safety and prepay whenever you can.

Home Loan Interest Rates in 2026 and the Repo Rate

After the Reserve Bank of India cut the repo rate by a total of 1.25 percentage points during 2025 to 5.25%, home loan interest rates in 2026 have come down. In September 2026, advertised starting rates are around 7.00%–7.25% at several public sector banks, about 7.25% at SBI, and roughly 7.55%–7.75% at large private banks such as ICICI Bank and HDFC Bank. The rate you actually get depends on your credit score, income, loan amount and the loan-to-value ratio.

Most new home loans are floating-rate loans linked to the repo rate (an external benchmark), and banks must reset these rates at least once every three months. So when the repo rate falls, your EMI or tenure falls too – and when it rises, they rise. When a rate changes, banks usually keep the EMI the same and change the remaining tenure unless you ask them to change the EMI instead.

Floating vs Fixed Interest Rate

A floating interest rate moves with the benchmark, so your EMI or tenure can change during the loan. A fixed interest rate keeps the EMI the same for a set period, but it is usually higher than the floating rate at the start and many "fixed" home loans become floating after a few years. For most Indian borrowers with a 15–30 year horizon, floating-rate loans have worked out cheaper, and they come with a big advantage: RBI rules do not allow banks to charge foreclosure or prepayment penalties on floating-rate home loans taken by individuals.

Flat Interest Rate vs Reducing Balance: Don't Get Misled

Some lenders quote a flat interest rate, where interest is charged on the full original loan for the entire tenure. It looks cheaper than it is. Compare a ₹10 lakh loan for 5 years at 10%:

• Flat rate: EMI ₹25,000, total interest ₹5,00,000.
• Reducing balance method: EMI ₹21,247, total interest ₹2,74,823.

Over 5 years, a 10% flat rate costs about as much as a 17.3% reducing-balance rate. Home loans from banks and housing finance companies use the reducing balance method – always confirm this before you sign.

How Much Home Loan Can I Get on My Salary?

Lenders check your EMI to income ratio (often called FOIR – fixed obligations to income ratio). Most banks allow total EMIs of about 40%–50% of your net monthly income, including existing loans. If you take home ₹1,00,000 a month and have no other loans, a 50% limit allows an EMI of ₹50,000. At 8% for 20 years, that supports a home loan eligibility of about ₹59.8 lakh. Lenders also consider your age, job stability, credit score (750+ gets the best rates) and the property value – most finance 75%–90% of it, so you need the rest as a down payment. To see your in-hand pay after tax and PF, try our salary calculator.

7 Ways to Reduce Your Home Loan EMI and Interest

1. Make a bigger down payment. Every lakh you do not borrow saves the EMI per lakh for the full tenure.
2. Improve your credit score before applying. A score above 750 helps you get the lowest advertised rate.
3. Compare lenders and negotiate. A 0.25% lower rate on ₹50 lakh saves about ₹780 a month.
4. Make part-prepayments. Home loan prepayment goes straight to principal. On the ₹30 lakh loan at 8% for 20 years, paying an extra ₹2 lakh after the 36th EMI and keeping the EMI unchanged cuts 28 EMIs and saves about ₹5.08 lakh in interest.
5. Increase your EMI when your salary rises. Even a 5%–10% yearly increase can finish the loan years earlier.
6. Refinance with a balance transfer if another lender offers a meaningfully lower rate after processing fees.
7. Ask your bank to review your rate. Older loans on MCLR or base rate can often be moved to the repo-linked rate for a small fee.

When you prepay, choosing to reduce the tenure rather than the EMI usually saves the most interest.

Home Loan Tax Benefit

Under the old tax regime, a home loan gives two valuable deductions: the principal part of your EMIs counts towards the ₹1.5 lakh yearly deduction popularly known as Section 80C, and interest on a self-occupied home is deductible up to ₹2 lakh a year under the provision known as Section 24(b). Under the new tax regime, which is the default and taxes income up to ₹12 lakh at nil, these deductions are not available for a self-occupied home. From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act and renumbered sections, so check the current section references on your tax forms. Compare both regimes with our income tax calculator to see which saves you more.

How to Use Our Home Loan EMI Calculator

1. Open the EMI calculator and choose Home Loan.
2. Enter the loan amount, interest rate and tenure, or move the sliders.
3. See your monthly EMI, total interest and total payment instantly, with a chart of principal vs interest.
4. Scroll down for the full year-by-year amortization schedule.

Buying abroad or want property tax, insurance and extra payments included? Use our mortgage calculator, which also lets you download the schedule as a CSV file.

Frequently Asked Questions

Disclaimer: Figures in this article are calculated with the standard reducing-balance EMI formula and rounded to the nearest rupee. Interest rates were checked in September 2026 and change often. This article is for general information and is not financial or tax advice – confirm the final terms with your lender before you borrow.