Home Loan Calculator
Stop celebrating your "affordable EMI." This calculator shows you the brutal truth: how much banks really make from your loan, what you're losing in opportunity costs, and exactly how to fight back.
The Reality Check Calculator
That's How Much the Bank Makes From You
Total interest you'll pay over 20 years. This is pure profit for the bank.
For a ₹50L loan. That's 0x your loan amount.
Every. Single. Month. For 20 years.
What you actually borrowed
Interest as % of loan
The REAL Cost (What Nobody Tells You)
| Loan Amount | ₹0 |
| + Interest (over 20 years) | ₹0 |
| + Processing & Registration | ₹0 |
| + Insurance (over 20 years) | ₹0 |
| + Maintenance (over 20 years) | ₹0 |
| ACTUAL Cost of "Owning" This Home | ₹0 |
The Opportunity Cost Reality
If you invested your EMI (₹0/month) in a diversified portfolio at 12% returns instead...
You'd have this much after 20 years.
That's ₹0 MORE than your home value (assuming 5% appreciation).
Principal vs Interest Over Time
First Year Breakdown (The Shocking Part)
Prepayment: Your Weapon Against Banks
Why Prepayment is a Game-Changer
Every ₹1 you prepay saves you ₹2-3 in interest. Prepayment is the single most powerful tool to reduce your loan burden. Here's how to do it right.
Current Scenario
| Monthly EMI | ₹0 |
| Remaining Tenure | 0 years |
| Total Interest | ₹0 |
New Scenario
| Monthly EMI | ₹0 |
| Remaining Tenure | 0 years |
| Total Interest | ₹0 |
You Just Saved
In interest by prepaying ₹0
That's a 0% return on your prepayment. Better than most investments!
Smart Prepayment Tips
- Prepay Early: The earlier you prepay, the more you save. Interest is front-loaded.
- Annual Prepayments: Even ₹50,000-₹1L yearly can cut years off your loan.
- Use Windfalls: Bonus, tax refund, gift money? Prepay your loan immediately.
- Choose Tenure Reduction: Usually saves more interest than EMI reduction.
- No Prepayment Penalty: RBI mandates no penalty for home loan prepayment. Use it!
Rent vs Buy: The Math They Don't Want You to See
The Uncomfortable Truth
In most Indian metros, renting + investing the difference makes MORE financial sense than buying. Here's the proof.
Renting + Investing
| Total Rent Paid (20y) | ₹0 |
| Down Payment Invested | ₹0 |
| Monthly Surplus Invested | ₹0/mo |
| Investment Value | ₹0 |
| Minus Total Rent Paid | -₹0 |
| Net Worth (Renting) | ₹0 |
Buying with Loan
| Property Price | ₹0 |
| Down Payment | ₹0 |
| Total EMI Paid (20y) | ₹0 |
| Maintenance & Other Costs | ₹0 |
| Total Invested | ₹0 |
| Property Value Today | ₹0 |
| Net Worth (Buying) | ₹0 |
The Verdict
Important Considerations
Reasons to Buy:
- Forced savings discipline
- Emotional security of ownership
- Freedom to modify/renovate
- No landlord hassles
- Hedge against rent increases
Reasons to Rent:
- Flexibility to relocate
- No maintenance headaches
- No property price risk
- Better liquidity
- Can invest more aggressively
Year-by-Year Breakdown: Where Your Money Goes
This table shows exactly how much of your EMI goes to principal vs interest each year. Notice how you're paying mostly interest for the first decade?
| Year | Opening Balance | EMI Paid | Principal | Interest | Closing Balance |
|---|---|---|---|---|---|
| Calculate your loan first to see the amortization schedule | |||||
Pro Tip: Prepay in the First 5-7 Years
The amortization schedule proves why prepayment works best early on. In the first years, most of your EMI goes to interest. Every rupee you prepay directly attacks the principal, saving you years of interest payments.