ZovaTool

Home Loan Calculator

Loan Inputs

Result Summary

Monthly Payment
₹38,213
Total Principal
₹40,00,000
Total Interest
₹43,31,103
Upfront Fees
₹20,000
Down Payment
₹10,00,000
Total Cost of Loan
₹93,51,103
Effective APR
8.57%
Periods
240 / 240
Amount Financed
₹40,00,000

How to use the Home Loan Calculator

  1. Enter the property price as Principal and your annual interest rate.
  2. Set tenure in months — most home loans run 180–360 months (15–30 years).
  3. Add a down payment (fixed amount or % of price) — usually 10–20%.
  4. Add yearly property tax, home insurance and PMI to see true monthly outflow.
  5. Choose Reducing Balance (standard for mortgages) and Monthly frequency.
  6. Add processing/origination fees so APR reflects the real cost.
  7. Open Schedule for the full amortization, period or yearly.
  8. Use Extra Payments to see how prepaying principal cuts years off the loan.
  9. Use Refinance / Compare to evaluate switching to a lower-rate lender.
  10. Use Tax Benefit to estimate rebate on interest paid (e.g. 80C/24b in India, mortgage interest deduction in US).
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Home loans: APR, PMI and prepayment strategy

A mortgage is usually the largest loan of your life — a 0.5% rate difference on a 25-year loan can mean lakhs in extra interest. Always compare APR, not just nominal rates, because processing fees and PMI quietly inflate the real cost.

PMI (Private Mortgage Insurance) typically applies when your down payment is below 20%. It protects the lender, not you, and usually drops off once you build 20% equity — request its removal proactively.

Bi-weekly payments make one extra monthly payment per year and can shave 4–6 years off a 30-year mortgage. Even a small recurring prepayment toward principal has an outsized effect because early payments are mostly interest.

Tax benefits on home loan interest (and in some jurisdictions, principal) can materially reduce your effective rate. Run the Tax Benefit tab with your marginal rate to see the net cost.