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How much of your EMI is interest?

See where your EMI really goes

  • Interest and principal, year by year
  • The year principal takes over
  • What a small prepayment cuts
Your monthly EMI
₹43,391
debt-free in 2046 · you repay ₹1.04 Cr
  • You borrow₹50 L48%
  • Interest to the bank₹54.14 L52%

How your loan shrinks

Loan left

Loan leftCut from loanInterest to bank

Paid each year

Your inputs

₹
₹1 L₹5 Cr
%
5%16%
yrs
1y30y
₹
₹0₹1 L

Part-prepay each month and watch the loan end sooner.

Your taxOptional: old regime counts 24(b) and 80C on the loan
Tax regime
Your tax slab
₹
₹0₹1.5 L

Up to ₹2L of interest a year (Section 24(b)) and the principal you repay, within what is left of ₹1.5L (80C), come off your tax.

Switch on to see what future amounts will buy at today's prices.

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What this means

  • You repay ₹1.04 Cr for a ₹50 L loan.
    Why?

    The bank earns ₹54.14 L in interest: 108% of what you borrow.

  • Only ₹19 of every ₹100 in year 1 cuts your loan.
    Why?

    Interest is charged on what you still owe, which is highest at the start. So early EMIs mostly pay interest.

  • Half the loan is repaid only by 2040, year 14 of 20.
    Why?

    Most people expect halfway at the halfway mark. Because early EMIs are mostly interest, it comes much later.

  • ₹4,000 extra a month saves ₹11.77 L and ends 3 yrs 9 mo sooner.
    Why?

    Every extra rupee goes straight to the loan, so there is less left for interest to be charged on.

  • Your last EMI will feel like ₹13,530 does today, after 6% inflation.
    Why?

    The EMI stays the same while prices and, usually, your pay rise. That is why a long loan feels lighter in its later years.

  • New regime: no tax break on the loan, so it costs its full 8.5%.
    Why?

    Under the new regime, interest on a self-occupied home and principal repaid can't be deducted. Switch to Old to see the old-regime saving.

More details

Tax breaks on your loan, year 1

  • Section 24(b) interest, ₹2L a year cap₹0 deducted · saves ₹0
  • Section 80C principal, ₹1.5L cap with your other 80C₹0 deducted · saves ₹0

New regime: no deduction, so the loan costs its full 8.5%. Switch to Old to see the saving.

Next stepPay off the ₹50 L loan soonerCompare step-up EMIs, extra EMIs, lumpsums and refinancing.

How it's calculated

EMI on a reducing-balance loan, with monthly rate r and n months:

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

Each month, interest is charged on the remaining balance. The rest of the EMI, plus any extra you pay, reduces the principal.

Tax figures follow Budget 2025 rules, for FY 2025-26 onward.

Common questions

Should I prepay or invest?
Prepaying gives a guaranteed return equal to your loan rate. If you expect to earn more after tax elsewhere, investing may win, but prepayment lowers risk.
Do banks charge for prepayment?
RBI rules bar prepayment penalties on floating-rate home loans for individual borrowers. Fixed-rate loans may carry charges, so check your agreement.
How much home-loan tax can I save?
Under the old regime, up to ₹2 lakh of interest a year (Section 24(b)) plus the principal you repay within what is left of ₹1.5 lakh (Section 80C). At the 30% slab that is up to ₹60,000 plus ₹45,000 a year. The new regime allows neither on a self-occupied home.
Why does the calculator ask what I already use under 80C?
The ₹1.5 lakh limit is shared with EPF, PPF, ELSS, life-insurance premiums and tuition fees. Your loan principal only gets what is left, and for many salaried people EPF alone uses most of it.
Does the ₹2 lakh limit apply to joint loans?
It applies to each person. Co-owners who are also co-borrowers each claim up to ₹2 lakh of interest and ₹1.5 lakh under 80C, in proportion to their share of the loan. Enter only your own share here.
What if the home is let out or still being built?
For a let-out home the interest has no cap, but setting a loss against your other income stops at ₹2 lakh a year. Interest paid before you get possession is claimed in 5 equal parts from the year the home is finished, inside the same cap. If a self-occupied home isn't finished within 5 years of the loan, the cap falls to ₹30,000. This calculator models a finished, self-occupied home.
Can I claim stamp duty, and what if I sell early?
Stamp duty and registration count under 80C in the year you pay them, which this calculator does not add. Selling the home within 5 years of getting possession adds the 80C you claimed back to your income.
What about the extra 80EE and 80EEA deductions?
They ended for loans sanctioned after 31 March 2022, so they are not modelled.
How exact is the tax saving?
It is a close estimate: the deduction times your slab rate. Cess (4%) would add a little, and a large deduction can pull you into a lower slab. The Income-tax Act 2025 (from 1 April 2026) renumbers these sections, but the limits stay as above.

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