Home Loan EMI Calculator India 2026

EMI is calculated using the reducing-balance method: EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is the principal, R is the monthly interest rate, and N is the tenure in months. Early in the loan, most of each EMI goes toward interest; later payments shift toward principal — which is why prepaying early in the tenure saves more total interest than prepaying later.

Under the old tax regime: Section 24(b) allows a deduction of up to ₹2,00,000/year on interest for a self-occupied property (unlimited for a let-out property); Section 80C allows up to ₹1,50,000/year on principal repayment. First-time buyers may also qualify for Section 80EE or 80EEA depending on property value and loan amount — check current eligibility caps, as these change with each Finance Act. None of these deductions apply under the new tax regime.

The original PMAY Credit Linked Subsidy Scheme (with its tiered 6.67%/4%/3% rates) was discontinued in 2021-22 and is no longer available. Since Budget 2025, PMAY-U 2.0's Interest Subsidy Scheme offers a flat 4% interest subsidy on the first ₹8,00,000 of an eligible loan (max ₹1,80,000 total) for EWS (income ≤₹3L), LIG (₹3-6L), or MIG (₹6-9L) first-time buyers, on loans sanctioned and disbursed on or after 1 September 2024. Confirm eligibility and required documents on pmaymis.gov.in before applying — your lender must apply for the subsidy on your behalf before disbursal.

Floating rates move with the RBI repo rate — most new floating loans are repo-linked (EBLR), so both rate cuts and hikes pass through relatively quickly. Fixed rates hold steady (often only for an initial period, not the full tenure) but usually start higher than the floating rate. There's no universally correct choice — it depends on your rate outlook and how much payment-amount uncertainty you can tolerate. This isn't financial advice; compare current rate cards from multiple lenders before deciding.

A lump-sum prepayment reduces the outstanding principal, which cuts the interest that accrues on it for the rest of the tenure — your EMI typically stays the same while the tenure shortens. RBI rules prohibit prepayment penalties on floating-rate home loans; fixed-rate loans may still carry a prepayment charge, so check your loan agreement. Prepaying earlier in the tenure saves more interest than prepaying later, because more of the outstanding balance is still accruing interest.