How is an India home loan EMI calculated?

The EMI uses the standard amortising formula EMI = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where P is the loan, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. Most Indian home loans are floating and linked to the bank's Repo Linked Lending Rate (RLLR), so the rate can change with RBI policy.

What is FOIR and why does it matter?

FOIR (Fixed Obligation to Income Ratio) is your total monthly loan repayments divided by gross income. Indian lenders usually cap it around 50%, meaning all your EMIs together should not exceed half your income. A high FOIR is the most common reason a home loan is reduced or rejected.

How much can I borrow against a property in India?

RBI loan-to-value (LTV) norms cap home loans at about 90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. So you generally need a down payment of at least 10–25% of the price, plus stamp duty and registration on top.

Is the PMAY subsidy included?

Not directly. The Pradhan Mantri Awas Yojana credit-linked subsidy can give eligible first-time buyers interest support up to roughly ₹2.67 lakh, paid into the loan account to reduce the principal. Model the basic EMI here, then subtract any subsidy you qualify for separately.

Does this calculator store my data?

No. Everything is computed locally in your browser and nothing is uploaded, so you can model your home loan privately.

India Mortgage Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

This India home loan calculator models a housing loan the way an Indian bank does: a fixed amortising EMI on an RLLR-linked rate, then checked against the two rules that decide how much you can actually borrow — the FOIR affordability limit (around 50% of income) and RBI’s loan-to-value caps.

How it works

The EMI (Equated Monthly Instalment) uses the standard amortising-loan formula:

EMI = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1)

where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Most Indian home loans are floating and reset with the bank’s Repo Linked Lending Rate (RLLR), so a higher RBI repo rate raises your EMI.

The tool then checks affordability with FOIR = total monthly EMIs ÷ gross income, which lenders typically keep at or below 50%, and flags the LTV (loan ÷ price) against RBI’s tiered caps of roughly 90% / 80% / 75% by loan size.

Example

A ₹50,00,000 flat with a ₹10,00,000 down payment gives a ₹40,00,000 loan. At 9% over 20 years the EMI is about ₹35,989/month, with total interest near ₹46.4 lakh over the full tenure. On a ₹1,20,000 gross monthly income that is a FOIR of about 30%, comfortably within the 50% guideline, and an LTV of 80%, within the cap for a loan of this size.

Notes

Floating rates move with RBI policy, so your EMI is not fixed for the whole tenure. Stamp duty and registration (typically 4–9% of price, state-specific) sit on top of the price — model those with an India stamp duty tool. Eligible first-time buyers may reduce the principal with a PMAY subsidy. This is an estimate, not a sanction letter.