Mortgage Calculator with Amortization Schedule
Calculate monthly EMI, total interest, and see year-by-year principal breakdown
How This Mortgage Calculator Works
This calculator uses the standard EMI (Equated Monthly Installment) formula used by all major banks worldwide. It breaks down each payment into principal (the actual loan amount) and interest (the bank's profit), showing you exactly how your loan reduces over time.
The EMI Formula
EMI = P × r × (1+r)^n / [(1+r)^n - 1]
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly payments (years × 12)
Understanding Amortization
In the early years of your loan, most of your EMI goes toward interest, not principal. For example, on a 20-year loan at 8.5%, you might pay 70% interest in year 1 but only 30% interest in year 20. This is why prepaying in the first 5-7 years saves the most money.
Example Calculation
For a ₹50,00,000 loan at 8.5% interest for 20 years:
- Monthly EMI: ₹43,391
- Total Interest: ₹54,13,840
- Total Payment: ₹1,04,13,840
- Interest is 108% of the principal! (This is why tenure matters)
Tips to Save on Home Loan Interest
- Shorter Tenure: 15 years instead of 20 can save you 30-40% in total interest
- Prepayment: Paying even 1 extra EMI per year can reduce tenure by 3-4 years
- Balance Transfer: Switch to a lower rate if available (save 0.5-1% annually)
- Higher Down Payment: Reduces loan amount and may get you better rates
What is a good home loan interest rate in 2026?
In India, good home loan rates are 8.35-8.75% (SBI, HDFC, ICICI). In the US, conventional mortgages are around 6.5-7.5%. Rates depend on your credit score, down payment, and loan tenure. Always compare at least 3-4 banks before deciding.
Should I choose a shorter or longer loan tenure?
Shorter tenure (10-15 years) means higher EMIs but significantly less total interest. Longer tenure (20-30 years) gives lower EMIs but you pay 2-3x the principal in interest. Choose based on your monthly cash flow and age.
What is Loan-to-Value (LTV) ratio?
LTV is the percentage of property value you're borrowing. For example, if property is ₹60 lakh and loan is ₹50 lakh, LTV is 83%. Banks prefer LTV below 80% - higher LTV may require mortgage insurance or get higher interest rates.
How does prepayment affect my loan?
Prepayment directly reduces your principal, which reduces future interest. You can either keep the EMI same (tenure reduces) or reduce EMI (tenure stays same). First option saves more money. Most banks allow 25% prepayment per year without penalty.
Fixed vs Floating interest rate - which is better?
Floating rates are currently preferred as they're typically 0.25-0.5% lower than fixed rates. If rates fall, your EMI decreases. Fixed rates provide certainty but cost more. For long-term loans (20+ years), floating is usually better.