Mortgage Calculator
Plan your home purchase with accurate mortgage calculations including taxes and insurance.
Fifty Lakh Rupees
Twenty Percent
Eight Percent
Twenty years
Two Thousand Rupees
One Thousand Rupees
Monthly Payment
₹37,713
Payment Breakdown
Optional: want an expert to review your numbers? Leave your email and we'll reach out. Downloads above are free — no email needed.
First Year Schedule
Mortgage Deep Dive
Understanding your full monthly payment (PITI)
Most mortgage calculators show only principal and interest, which understates what you'll actually pay each month. This calculator models the full PITI payment — Principal, Interest, Taxes, and Insurance — because that's the number your bank account feels. Property tax and homeowner's insurance don't build equity, but skipping them in your planning is how buyers end up house-poor.
The principal-and-interest portion follows the standard amortization formula: EMI = L × [i(1+i)n] / [(1+i)n − 1], where L is the loan amount (home price minus down payment), i the monthly interest rate, and n the total number of payments. Taxes and insurance are added on top as flat monthly amounts.
A worked example
A ₹50 lakh home with 20% down leaves a ₹40 lakh loan. At 8.5% over 20 years, principal and interest come to about ₹34,700/month. Add ₹2,000 property tax and ₹1,000 insurance, and your true monthly outgo is ₹37,700 — nearly 9% higher than the loan-only figure. Over the full tenure you'll pay roughly ₹43 lakh in interest alone: more than the amount you borrowed.
In the first year, around ₹28,000 of each payment is interest and only ₹6,700 reduces your balance. By year 15 the ratio flips. This is why prepayments early in the tenure save dramatically more interest than the same prepayment made late.
Down payment: the most powerful lever
Every extra percentage point of down payment does triple duty: it shrinks the loan, shrinks the monthly payment, and shrinks total interest. Moving from 10% to 25% down on the example above cuts the monthly PITI by about ₹6,500 and total interest by over ₹7 lakh. In the US, crossing 20% down typically also eliminates private mortgage insurance (PMI), an extra 0.5–1% of the loan per year that buys you nothing.
The counterargument: cash locked in a house can't be invested. If your loan rate is 8.5% and you expect 12% from equity, a smaller down payment plus investing the difference can win mathematically — with more risk. Our payoff-vs-invest calculator quantifies exactly that trade-off.
Tenure: 15 versus 20 versus 30 years
Longer tenures lower the monthly payment but raise total interest steeply, because interest accrues on a slowly shrinking balance for more years. On a ₹40 lakh loan at 8.5%: 15 years costs about ₹31 lakh in interest, 20 years about ₹43 lakh, and 30 years about ₹70 lakh. The 30-year EMI is only ~21% cheaper per month than the 15-year, yet more than doubles the interest bill. A common middle path is taking the longer tenure for payment flexibility and prepaying aggressively when income allows — most Indian home loans permit free partial prepayment on floating rates.
Use the tenure slider to find your own break point: the shortest tenure whose PITI stays under roughly 35–40% of your take-home income. Beyond that ratio, lenders get nervous and so should you.
Prepayment: the quiet third option
Between "take the 15-year and strain" and "take the 30-year and pay double the interest" sits a strategy lenders don't advertise: take the 30-year term for its lower obligation, then prepay at your own pace. Every extra payment goes entirely to principal, and because interest is charged on the remaining balance, early prepayments punch far above their weight — one extra EMI per year on a 30-year loan typically shortens it by 4–5 years. The 30-year obligation remains your safety net: in a tight month, you fall back to the lower required payment with no penalty, a flexibility the 15-year borrower doesn't have. Our debt payoff calculator models exactly how much any prepayment pattern saves on your specific loan.
Costs this calculator doesn't include
- One-time purchase costs: stamp duty and registration (5–8% of price in most Indian states), brokerage, and loan processing fees. Our home buying planner itemizes these.
- Maintenance and society charges: budget 1–2% of the home's value per year, plus monthly association fees for apartments.
- Rate resets: floating-rate loans reprice with the repo rate. A 0.5% rate rise on the example loan adds about ₹1,300/month.
- Tax benefits: Indian borrowers can deduct up to ₹2 lakh of interest (Section 24b) and ₹1.5 lakh of principal (80C) per year under the old regime, which effectively lowers the loan's real cost.
Renting versus buying: run the other number too
A mortgage payment isn't automatically "better than rent" — the interest, taxes, insurance, and maintenance portions are unrecoverable costs just like rent, while only the principal portion builds wealth. If the same money invested elsewhere would grow faster than your home appreciates, renting can leave you wealthier. Our rent vs buy calculators (global and India-specific with tax benefits) settle this with your actual numbers rather than a rule of thumb.
Mortgage Basics
A mortgage payment is made up of four key components, often referred to as PITI. Understanding how each behaves over the life of the loan is the difference between reading your statement and actually understanding it.
Principal
The portion of your payment that reduces the loan balance. Early in the loan this is the smaller slice — on a 30-year loan, the first year of payments typically cuts the balance by barely 1-1.5%. Its share grows every month as the balance shrinks.
Interest
The cost of borrowing, calculated each month on the remaining balance. Because the balance starts large, interest dominates early payments — on a 30-year loan at 6.5%, over 70% of the first year of payments is interest alone.
Taxes & Insurance
Property taxes and homeowner's insurance are often collected by the lender in escrow and paid on your behalf. They typically add 15-25% on top of the principal-and-interest payment and rise over time even after the loan itself is fixed.
Your payment stays fixed, but its composition shifts every month: as principal payments shrink the balance, next month's interest charge falls, freeing more of the same payment to attack principal. The crossover point where principal exceeds interest arrives around year 18-19 on a 30-year loan at 6.5%, but around year 5 on a 15-year loan — one reason shorter terms build equity so much faster. The first-year amortization table in this calculator shows this dynamic month by month.
Frequently Asked Questions
Common questions and helpful answers about this calculator.