Home Loan Calculator
Calculate your home loan EMI, total interest, and repayment schedule. Supports all loan amounts, tenures and interest rates.
Monthly EMI
$0.00
How to Use the Home Loan Calculator
Enter the property value and set the LTV% (loan-to-value) โ the calculator auto-computes the loan amount (e.g., 80% LTV on a $400K home = $320K loan). Enter the interest rate and tenure to see your EMI, total interest, and the impact of a 1% rate change.
Home Loan EMI Formula
EMI = P ร r ร (1+r)โฟ / ((1+r)โฟ โ 1) Loan amount (P) = Property Value ร LTV% รท 100. r = annual rate รท 12 รท 100. n = years ร 12.
Frequently Asked Questions
- Home loan EMI = P ร r ร (1+r)โฟ / ((1+r)โฟ โ 1), where P = loan amount, r = monthly interest rate (annual rate รท 12 รท 100), n = tenure in months. For a $300,000 loan at 7% for 30 years, the monthly EMI is approximately $1,996.
- Most lenders follow the 28/36 rule: your monthly mortgage payment should not exceed 28% of gross monthly income, and total debt should not exceed 36%. For a $6,000/month income, max mortgage payment = $1,680. This translates to roughly 3โ5ร your annual salary as the loan amount.
- LTV (Loan-to-Value) ratio = Loan amount รท Property value ร 100. A lower LTV means less risk for lenders. Most lenders require LTV below 80% to avoid PMI (Private Mortgage Insurance). Example: $240,000 loan on $300,000 property = 80% LTV.
- Lenders calculate eligibility based on: (1) income โ typically allow EMI up to 40โ50% of net income; (2) credit score โ 700+ preferred; (3) existing debts; (4) employment stability. Use our calculator to find the EMI and check if it fits within 40% of your monthly income.
- Typical required documents: identity proof (passport, driver's license), income proof (pay stubs, W-2s, tax returns), bank statements (2โ3 months), property documents (purchase agreement, title), and employment verification. Self-employed borrowers need 2 years of business tax returns.
- A fixed rate stays the same throughout the loan tenure โ predictable payments but usually higher than initial floating rates. A floating (adjustable) rate changes with market benchmarks (like SOFR) โ starts lower but can increase. Fixed is safer for long-term loans in a low-rate environment.
- Strategies to pay off faster: (1) Make biweekly payments instead of monthly (26 half-payments = 13 full payments/year); (2) Make extra principal payments; (3) Round up your payment; (4) Apply any windfalls (bonuses, tax refunds) to principal. This can cut years off your loan and save tens of thousands in interest.
- In the US, you can deduct mortgage interest on loans up to $750,000 (itemizing required). You may also deduct property taxes up to $10,000 (SALT cap). Points paid at closing are also deductible. Consult a tax professional for your specific situation.
- The processing fee (or origination fee) is charged by lenders for processing the loan application โ typically 0.5โ1% of the loan amount. Other closing costs include appraisal fees, title insurance, and escrow fees, totaling 2โ5% of the purchase price.
- Monthly interest = Outstanding balance ร (Annual rate รท 12 รท 100). In the first month of a $300,000 loan at 7%: interest = $300,000 ร (0.07 รท 12) = $1,750. Total interest over the full loan = (Monthly EMI ร months) โ principal.