Home loan calculator with RBI LTV limits, prepayments and tax benefit
This home loan calculator starts with the property price. It applies the RBI loan-to-value limits to show the largest loan a bank or housing finance company may give and the down payment you need, then works out the EMI, total interest and a schedule grouped by Indian tax year (April to March).
It also covers what comes after the sanction letter: what a part-prepayment saves, whether to cut the EMI or the tenure, what a floating-rate hike does, whether the EMI fits your pay, and the tax benefit each year under both regimes. Everything runs in your browser; results are estimates, not financial or tax advice.
How to use the Home Loan Calculator
- Enter the Property value and Down payment, or press Use minimum to borrow the most the LTV rules allow.
- Type the Interest rate, Tenure and First EMI date from your offer.
- Add a one-time or yearly part-prepayment and choose Reduce tenure or Reduce EMI.
- To test a rate change, enter the New interest rate, the EMI it starts from and what your lender does.
- Fill in take-home pay and the Tax benefit details, then read the schedule or press Download CSV.
Home Loan Calculator features
RBI loan-to-value built in
The maximum loan follows the 90%, 80% and 75% bands set by loan size, and a down payment that is too small is flagged.
Prepayment planner
One-time and yearly part-payments, with interest and months saved, and the charge on fixed-rate loans.
Floating-rate scenario
Change the rate from any EMI and see a longer tenure or a higher EMI.
Tax saved each year
Interest and principal per tax year turned into tax saved under both regimes, with the same slab engine as the income tax calculator.
How much can you borrow? RBI loan-to-value limits
RBI caps an individual housing loan at a share of the property value, and the cap depends on the loan amount. Lenders then check income, age and credit score, so this is a ceiling, not a promise.
- A ₹35 lakh home can be financed up to ₹30 lakh (85.7%): a 90% loan would cross ₹30 lakh and fall into the 80% band.
- Stamp duty and registration are left out of the value used for LTV (except for homes up to ₹10 lakh), so budget for them on top of the down payment.
| Loan amount | Maximum LTV | Example |
|---|---|---|
| Up to ₹30 lakh | 90% | ₹25 lakh home → ₹22.5 lakh |
| ₹30 lakh to ₹75 lakh | 80% | ₹62.5 lakh home → ₹50 lakh |
| Above ₹75 lakh | 75% | ₹1.2 crore home → ₹90 lakh |
Worked example: ₹50 lakh at 8.5% for 20 years
A ₹62.5 lakh flat with ₹12.5 lakh down leaves a ₹50 lakh loan, exactly the 80% cap. The EMI is ₹43,391 and total interest ₹54,13,879.
Prepay ₹5 lakh after the 24th EMI and keep the EMI: the loan ends after 195 EMIs, 3 years 9 months sooner, saving ₹14,57,301. Cutting the EMI instead (to ₹38,864) saves ₹4,77,894 — about a third as much.
If the rate rises to 9.5% from the 37th EMI and the EMI stays, the loan runs 279 EMIs and interest climbs to ₹71,05,741. Raising the EMI to ₹46,265 keeps the end date and holds interest at ₹60,00,207. RBI’s 2023 reset rules require lenders to offer that choice.
Home loan tax benefits for tax year 2026-27
- Interest, self-occupied home: up to ₹2 lakh a year under section 22 of the Income-tax Act, 2025 (24(b) of the 1961 Act), old regime only; ₹30,000 if the loan was for repairs or construction took longer than five years.
- Principal: within the ₹1.5 lakh limit of section 123 (formerly 80C), shared with EPF, PPF and ELSS. Old regime only.
- 80EEA (now section 131): up to ₹1.5 lakh more interest for a first home with a stamp-duty value up to ₹45 lakh, but only on loans sanctioned 1 April 2019 – 31 March 2022; no new loans qualify. Tick the box to add it — the example rises to ₹1,40,250.
- Let-out home: rent less 30%, minus all the interest. In the old regime a loss cuts other income by up to ₹2 lakh (section 109) and the rest is carried forward eight years; in the new regime interest only brings rent down to zero.
- Example: a ₹24 lakh salary with ₹50,000 of other 80C items and ₹25,000 of other deductions saves ₹93,450 in 2026-27 under the old regime and nothing under the new. Let out at ₹3 lakh a year: ₹1,58,970 (old, ₹11,182 carried forward) or ₹61,620 (new).
Rules used (as of October 2026)
RBI Master Circular on Housing Finance and Housing Finance Companies Directions, 2025 (LTV bands); RBI (Pre-payment Charges on Loans) Directions, 2025, for loans sanctioned or renewed from 1 January 2026; Income-tax Act, 2025, sections 22, 109, 110, 123, 131 and 202 with 2026-27 slabs from the income tax calculator engine, applied to every year. Section numbers follow the CBDT utility mapping the 1961 Act to the 2025 Act (records dated 5 May 2026); 80EEA conditions from the Income Tax Department’s section text. Pre-construction interest is not modelled.
Home Loan Calculator FAQ
How much home loan can I get on a ₹50 lakh property?
Up to ₹40 lakh under the RBI limits, because a loan above ₹30 lakh may be at most 80% of the value. The sanction also depends on your income, existing EMIs, age and credit history.
Should I reduce the EMI or the tenure after a prepayment?
Reducing the tenure saves far more interest. In the home loan calculator example, ₹5 lakh after two years saves ₹14.6 lakh with a shorter tenure but ₹4.8 lakh with a lower EMI.
Are there charges for prepaying a home loan?
Not on floating-rate home loans to individuals sanctioned or renewed from 1 January 2026 — part or full, from your own money or a balance transfer. Fixed-rate loans can carry a charge set by the lender and disclosed in the sanction letter.
Can I claim home loan interest in the new tax regime?
Not for a self-occupied home. For a let-out home the interest is deducted from rent, but only down to zero; the loss cannot reduce salary or be carried forward.
What EMI can I comfortably afford?
A common guide is to keep all EMIs below 35–40% of take-home pay. Lenders may allow more, but a lower share leaves room for savings and rate rises.
What happens to my EMI when the repo rate changes?
Floating loans linked to an external benchmark reset at intervals set in your agreement. Lenders usually keep the EMI and change the tenure; the rate-change box shows both options.