How is monthly EMI calculated in India?

EMI is calculated using the formula: P x R x (1+R)^N / [(1+R)^N - 1], where P is Principal, R is monthly interest rate (Annual Rate / 12 / 100), and N is loan tenure in months.

Does paying extra principal reduce loan EMI or tenure?

Prepaying principal reduces your outstanding loan balance, allowing you to choose between lowering monthly EMI or shortening overall loan tenure to save interest.

What is the difference between flat interest rate and reducing balance EMI?

Under flat rate, interest is charged on the full original loan amount throughout the tenure. Under reducing balance, interest is recalculated monthly on the remaining outstanding principal, resulting in significantly lower overall interest.

How is Home Loan EMI mathematically calculated in India?

Home Loan EMI is computed using the reducing balance formula: EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P = Principal loan amount, r = Monthly interest rate (Annual rate / 12 / 100), and n = Total number of monthly installments (Years × 12). Total Interest Payable = (EMI × n) - Principal.

What are the exact tax deduction limits under Section 24(b) and Section 80C on Home Loans?

Under Section 24(b) of the Income Tax Act (Old Tax Regime), you can claim a deduction of up to ₹2,00,000 per financial year for interest paid on a loan taken for purchase or construction of a self-occupied property. Additionally, principal loan repayment qualifies for deduction under Section 80C up to a maximum limit of ₹1,50,000.

Is home loan interest under Section 24(b) deductible in the New Tax Regime?

Under the New Tax Regime (Section 115BAC), interest on home loans for self-occupied properties is NOT deductible. For let-out (rented) properties, interest paid can be deducted against the rental income, but any resulting net loss under the head "Income from House Property" cannot be set off against your salary or business income.

How is pre-construction home loan interest claimed under Section 24(b)?

Interest paid during the construction or pre-possession period cannot be claimed in the year it is incurred. Instead, the total accumulated pre-construction interest is aggregated and allowed as a deduction in 5 equal annual installments commencing from the financial year in which the construction is completed and possession is handed over (subject to the overall ₹2 Lakh annual ceiling).

Can husband and wife both claim Section 24(b) and Section 80C deductions on a joint home loan?

Yes! If both husband and wife are joint owners of the property and co-borrowers paying the home loan EMIs, each co-owner can independently claim up to ₹2,00,000 for interest under Section 24(b) (totaling ₹4,00,000) and up to ₹1,50,000 for principal repayment under Section 80C (totaling ₹3,00,000), provided their combined claims do not exceed the actual interest and principal paid.

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EMI Calculator 2026

Calculate your loan EMI, interest, and repayment schedule

Loan Amount

₹

₹1.0 L₹500.0 L

Quick Loan Presets:

Interest Rate (% p.a.)

5%20%

Loan Tenure (Years)

1 Yrs30 Yrs

EMI Calculator Summary

Loan EMI

₹66,915

Total Interest Payable Payable

₹80.60 L

Total Payment (Principal + Interest)

₹1.61 Cr

one crore sixty lakh fifty nine thousand six hundred and forty nine rupees only

Interest Exceeds Principal

You will pay more in interest than the actual loan amount borrowed.

EMI Payment / Year

Year: 2026

Principal Paid: ₹41,018

Interest Paid: ₹1,59,728

Total Payment: ₹2,00,746

Your Repayment/Breakup Details (Monthly)

Your debt repayment schedule in regular instalments over a period of time.

Year	Principal Amount	Total Interest	Total Amount	Balance
2026▼	₹41,018	₹1,59,728	₹2,00,746	₹79,58,982
Oct	₹13,582	₹53,333	₹66,915	₹79,86,418
Nov	₹13,672	₹53,243	₹66,915	₹79,72,746
Dec	₹13,764	₹53,152	₹66,915	₹79,58,982
2027▶	₹1,72,498	₹6,30,485	₹8,02,982	₹77,86,484
2028▶	₹1,86,815	₹6,16,167	₹8,02,982	₹75,99,669
2029▶	₹2,02,321	₹6,00,662	₹8,02,982	₹73,97,349
2030▶	₹2,19,113	₹5,83,869	₹8,02,982	₹71,78,236
2031▶	₹2,37,299	₹5,65,683	₹8,02,982	₹69,40,936
2032▶	₹2,56,995	₹5,45,987	₹8,02,982	₹66,83,941
2033▶	₹2,78,326	₹5,24,657	₹8,02,982	₹64,05,616
2034▶	₹3,01,426	₹5,01,556	₹8,02,982	₹61,04,189
2035▶	₹3,26,445	₹4,76,538	₹8,02,982	₹57,77,745
2036▶	₹3,53,539	₹4,49,443	₹8,02,982	₹54,24,205
2037▶	₹3,82,883	₹4,20,099	₹8,02,982	₹50,41,322
2038▶	₹4,14,662	₹3,88,320	₹8,02,982	₹46,26,660
2039▶	₹4,49,079	₹3,53,904	₹8,02,982	₹41,77,582
2040▶	₹4,86,352	₹3,16,630	₹8,02,982	₹36,91,229
2041▶	₹5,26,719	₹2,76,263	₹8,02,982	₹31,64,510
2042▶	₹5,70,437	₹2,32,546	₹8,02,982	₹25,94,074
2043▶	₹6,17,783	₹1,85,200	₹8,02,982	₹19,76,291
2044▶	₹6,69,058	₹1,33,924	₹8,02,982	₹13,07,233
2045▶	₹7,24,590	₹78,393	₹8,02,982	₹5,82,643
2046▶	₹5,82,643	₹19,593	₹6,02,237	₹0

Formula used by EMI Calculator

R ( 0.00667 ) = Interest( 8 % )/12/100

EMI = [P * R * (1+R)ⁿ] / [((1+R)ⁿ)-1]

EMI ( ₹66,915 ) = [₹80,00,000 * 0.00667 * (1+0.00667)^240] / [((1+0.00667)^240)-1]

Monthly EMI
=PMT(rate ( 0.0067 ), nper ( 240 ), pv ( ₹80,00,000 )) = ₹66,915

Interest Paid for first month
=IPMT(pv ( ₹80,00,000 ), pmt ( ₹66,915 ), rate ( 0.0067 ), per ( 0 )) = ₹53,333

Principal Paid for first month
=PPMT(rate ( 0.0067 ), per ( 0 ), nper ( 240 ), pv ( ₹80,00,000 )) = ₹13,582

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Your Repayment/Breakup Details (Monthly)

Your debt repayment schedule in regular instalments over a period of time.

Year	Principal Amount	Total Interest	Total Amount	Balance
2026▼	₹41,018	₹1,59,728	₹2,00,746	₹79,58,982
Oct	₹13,582	₹53,333	₹66,915	₹79,86,418
Nov	₹13,672	₹53,243	₹66,915	₹79,72,746
Dec	₹13,764	₹53,152	₹66,915	₹79,58,982
2027▶	₹1,72,498	₹6,30,485	₹8,02,982	₹77,86,484
2028▶	₹1,86,815	₹6,16,167	₹8,02,982	₹75,99,669
2029▶	₹2,02,321	₹6,00,662	₹8,02,982	₹73,97,349
2030▶	₹2,19,113	₹5,83,869	₹8,02,982	₹71,78,236
2031▶	₹2,37,299	₹5,65,683	₹8,02,982	₹69,40,936
2032▶	₹2,56,995	₹5,45,987	₹8,02,982	₹66,83,941
2033▶	₹2,78,326	₹5,24,657	₹8,02,982	₹64,05,616
2034▶	₹3,01,426	₹5,01,556	₹8,02,982	₹61,04,189
2035▶	₹3,26,445	₹4,76,538	₹8,02,982	₹57,77,745
2036▶	₹3,53,539	₹4,49,443	₹8,02,982	₹54,24,205
2037▶	₹3,82,883	₹4,20,099	₹8,02,982	₹50,41,322
2038▶	₹4,14,662	₹3,88,320	₹8,02,982	₹46,26,660
2039▶	₹4,49,079	₹3,53,904	₹8,02,982	₹41,77,582
2040▶	₹4,86,352	₹3,16,630	₹8,02,982	₹36,91,229
2041▶	₹5,26,719	₹2,76,263	₹8,02,982	₹31,64,510
2042▶	₹5,70,437	₹2,32,546	₹8,02,982	₹25,94,074
2043▶	₹6,17,783	₹1,85,200	₹8,02,982	₹19,76,291
2044▶	₹6,69,058	₹1,33,924	₹8,02,982	₹13,07,233
2045▶	₹7,24,590	₹78,393	₹8,02,982	₹5,82,643
2046▶	₹5,82,643	₹19,593	₹6,02,237	₹0

Formula used by EMI Calculator

R ( 0.00667 ) = Interest( 8 % )/12/100

EMI = [P * R * (1+R)ⁿ] / [((1+R)ⁿ)-1]

EMI ( ₹66,915 ) = [₹80,00,000 * 0.00667 * (1+0.00667)^240] / [((1+0.00667)^240)-1]

Monthly EMI
=PMT(rate ( 0.0067 ), nper ( 240 ), pv ( ₹80,00,000 )) = ₹66,915

Interest Paid for first month
=IPMT(pv ( ₹80,00,000 ), pmt ( ₹66,915 ), rate ( 0.0067 ), per ( 0 )) = ₹53,333

Principal Paid for first month
=PPMT(rate ( 0.0067 ), per ( 0 ), nper ( 240 ), pv ( ₹80,00,000 )) = ₹13,582

EMI Calculator 2026

EMI Calculator Summary

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EMI Calculator 2026

EMI Calculator Summary

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Your Repayment/Breakup Details (Monthly)

Formula used by EMI Calculator

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