How to Use the Home Loan / Mortgage Calculator
Enter the property value and your down payment amount - the calculator automatically derives the loan amount. Then set the interest rate, tenure, and optionally include annual property tax and insurance to see your complete monthly housing cost.
Use the Fixed / Floating toggle to switch between rate types. Fixed rates are typically 0.5%-1% higher but give EMI certainty. Floating rates move with RBI repo rate changes and are more common for long-tenure home loans.
LTV Ratio - RBI Guidelines
The Loan-to-Value (LTV) ratio is the percentage of property value financed by the bank. RBI mandates maximum LTV limits based on loan amount:
Loan up to ₹30 lakh → Max LTV 90% (Min 10% down)
Loan ₹30L - ₹75 lakh → Max LTV 80% (Min 20% down)
Loan above ₹75 lakh → Max LTV 75% (Min 25% down)
LTV = Loan Amount ÷ Property Value × 100
A lower LTV typically means better interest rates and faster loan approval. Our calculator shows your LTV in real time and flags if it exceeds RBI limits for your loan amount.
Mortgage EMI Formula
The EMI is calculated the same way as any reducing-balance loan:
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
P = Loan Amount (Property Value - Down Payment)
R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
N = Tenure in months (Years × 12)
Home Loan Interest Rates in India (2025)
Current home loan rates range from 8.40% to 9.75% across major Indian lenders. SBI home loans start at 8.50% (floating), HDFC Bank from 8.70%, ICICI Bank from 8.75%, and Axis Bank from 8.75%. Rates depend on your CIBIL score, loan amount, employment type, and property location. A score above 750 typically fetches the best rates.
Stamp Duty & Registration - Additional Costs
Apart from the down payment and EMI, budget for stamp duty (3%-8% of property value depending on state) and registration charges (0.5%-1%). In Maharashtra, stamp duty is 5-6%; in Karnataka, it is 5%; in Delhi, it is 4-6% for women buyers. These one-time charges are not included in the EMI but form a significant part of your home buying cost.
Frequently Asked Questions
What is the difference between a mortgage and a home loan?
In India, the terms are used interchangeably in common usage. Technically, a "mortgage" is the legal charge created on the property as collateral when you take a home loan. The home loan is the borrowing; the mortgage is the security. In Western contexts, "mortgage" refers to the entire product. Our calculator covers both.
What is a good LTV ratio for a home loan?
An LTV of 75%-80% is considered comfortable — it means you've paid 20%-25% down. This typically qualifies you for better interest rates and reduces the bank's risk. Higher LTV (90%) means lower upfront cost but higher EMI and more total interest paid over the tenure.
Fixed rate vs floating rate — which should I choose?
For tenures of 15 years or more, most borrowers in India prefer floating rates as they benefit from rate cuts over time. Fixed rates are better for short-to-medium tenures (5-10 years) where you want EMI predictability. Some banks offer "dual rate" products — fixed for the first 3-5 years, then floating.
Can I claim tax benefit on home loan EMI?
Yes. Under the old tax regime: Section 80C allows deduction of up to ₹1.5L on principal repayment; Section 24(b) allows deduction of up to ₹2L on interest paid for self-occupied property. For let-out property, the full interest is deductible. Under the new tax regime (FY 2023-24 onwards), these deductions are not available except for rental properties.
How is property tax calculated in India?
Property tax is levied by the local municipal corporation and varies significantly by city. It is typically calculated on the Annual Rental Value (ARV) or the Unit Area Value (UAV) of the property. In cities like Mumbai, Delhi, and Bengaluru, annual property tax typically ranges from 0.1% to 0.5% of the property's market value. Use the optional field in our calculator to include your property's specific tax amount.
