{"id":346,"date":"2015-06-10T08:41:39","date_gmt":"2015-06-10T06:41:39","guid":{"rendered":"http:\/\/wpcalc.com\/?p=346"},"modified":"2026-09-30T19:44:46","modified_gmt":"2026-09-30T16:44:46","slug":"housing-loan-interest-rate","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/housing-loan-interest-rate\/","title":{"rendered":"Housing Loan Interest Rate Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Home Loan Interest and Payment Calculator<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"346\" data-favorite-title=\"Housing Loan Interest Rate\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/housing-loan-interest-rate\/\" data-favorite-excerpt=\"Estimate how much housing loan your income can support. Enter your monthly income, other income, expenditure, loan term and interest rate to see your eligible EMI, loan amount and total interest.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/housing-loan-interest-rate\/\" method=\"POST\" class=\"calculator\" id=\"calculator-346\" data-post=\"346\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field\" id=\"input-1\"><label for=\"field-1\">Monthly Income<\/label><input type=\"text\" name=\"monthly_income\" id=\"field-1\" aria-describedby=\"calc-unit-1 calc-info-1\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"50000\"\/><div class=\"unit\" id=\"calc-unit-1\">Rs.<\/div><small id=\"calc-info-1\">Enter your monthly income<\/small><\/div><div class=\"field\" id=\"input-2\"><label for=\"field-2\">Other Income<\/label><input type=\"text\" name=\"other_income\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"5000\"\/><div class=\"unit\" id=\"calc-unit-2\">Rs.<\/div><small id=\"calc-info-2\">Enter your other monthly income<\/small><\/div><div class=\"field\" id=\"input-3\"><label for=\"field-3\">Monthly Expenditure<\/label><input type=\"text\" name=\"monthly_expenditure\" id=\"field-3\" aria-describedby=\"calc-unit-3 calc-info-3\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"20000\"\/><div class=\"unit\" id=\"calc-unit-3\">Rs.<\/div><small id=\"calc-info-3\">Enter your monthly expenditure<\/small><\/div><div class=\"field\" id=\"input-4\"><label for=\"field-4\">Term of Loan<\/label><div class=\"grid grid-cols-1\"><select id=\"field-4\" name=\"term_of_loan\"><option value=\"1\">1 years<\/option><option value=\"2\">2 years<\/option><option value=\"3\">3 years<\/option><option value=\"4\">4 years<\/option><option value=\"5\">5 years<\/option><option value=\"6\">6 years<\/option><option value=\"7\">7 years<\/option><option value=\"8\">8 years<\/option><option value=\"9\">9 years<\/option><option value=\"10\">10 years<\/option><option value=\"11\">11 years<\/option><option value=\"12\">12 years<\/option><option value=\"13\">13 years<\/option><option value=\"14\">14 years<\/option><option value=\"15\">15 years<\/option><option value=\"16\">16 years<\/option><option value=\"17\">17 years<\/option><option value=\"18\">18 years<\/option><option value=\"19\">19 years<\/option><option value=\"20\">20 years<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-5\"><label for=\"field-5\">Annual Interest Rate<\/label><input type=\"text\" name=\"annual_interest_rate\" id=\"field-5\" aria-describedby=\"calc-unit-5 calc-info-5\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"30\" value=\"8\"\/><div class=\"unit\" id=\"calc-unit-5\">%<\/div><small id=\"calc-info-5\">Enter the annual interest rate<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"346\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Home Loan Value<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"Rs.\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-2\"><span class=\"field-title\"><span>Total Interest<\/span><\/span><span class=\"field-value\" id=\"result-2\" data-unit=\"Rs.\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-3\"><span class=\"field-title\"><span>Monthly Payment<\/span><\/span><span class=\"field-value\" id=\"result-3\" data-unit=\"Rs.\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"346\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Housing Loan Interest Rate Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ \\text{Eligible EMI} = (\\text{Monthly Income} + \\text{Other Income}) - \\text{Monthly Expenditure} \\\\ r = \\frac{\\text{Annual Interest Rate}}{12 \\times 100} \\\\ n = \\text{Term of Loan} \\times 12 \\\\ \\text{Loan Amount} = \\frac{\\text{Eligible EMI} \\times \\left(1 - (1 + r)^{-n}\\right)}{r} \\\\ \\text{Total Interest} = (\\text{Eligible EMI} \\times n) - \\text{Loan Amount} \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(\\text{Monthly Income}\\) \u2014 primary income per month (Rs.)<\/li>\n<li>\\(\\text{Other Income}\\) \u2014 additional income per month, such as rent or freelance earnings (Rs.)<\/li>\n<li>\\(\\text{Monthly Expenditure}\\) \u2014 total monthly living expenses (Rs.)<\/li>\n<li>\\(r\\) \u2014 monthly interest rate, expressed as a decimal<\/li>\n<li>\\(n\\) \u2014 total number of monthly payments<\/li>\n<\/ul>\n<p>The calculator works backwards from affordability: your surplus income becomes the EMI you can pay, and the loan amount is the present value of that EMI stream at the given interest rate. If the annual rate is 0%, the loan amount is simply \\(\\text{Eligible EMI} \\times n\\).<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Housing Loan Interest Rate \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> a household has a monthly income of Rs. 50,000, other income of Rs. 5,000 and monthly expenditure of Rs. 20,000. They want a 15-year housing loan at an annual interest rate of 8%.<\/p>\n<p>\\[ \\text{Eligible EMI} = 50{,}000 + 5{,}000 - 20{,}000 = 35{,}000 \\text{ Rs.} \\]<\/p>\n<p>\\[ r = \\frac{8}{12 \\times 100} = 0.006667, \\quad n = 15 \\times 12 = 180 \\text{ months} \\]<\/p>\n<p>\\[ \\text{Loan Amount} = \\frac{35{,}000 \\times \\left(1 - 1.006667^{-180}\\right)}{0.006667} \\approx 3{,}662{,}400 \\text{ Rs.} \\]<\/p>\n<p>\\[ \\text{Total Interest} = 35{,}000 \\times 180 - 3{,}662{,}400 \\approx 2{,}637{,}600 \\text{ Rs.} \\]<\/p>\n<p><strong>Result:<\/strong> the household can support a loan of about Rs. 3,662,400 with a monthly payment of Rs. 35,000. Over 15 years they would repay Rs. 6,300,000 in total, of which roughly Rs. 2,637,600 is interest.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to Use the Calculator<\/h2>\n<ol>\n<li>Enter your <strong>Monthly Income<\/strong> in rupees \u2014 your regular salary or business income.<\/li>\n<li>Enter any <strong>Other Income<\/strong> you receive each month, such as rent or freelance payments. Enter 0 if you have none.<\/li>\n<li>Enter your <strong>Monthly Expenditure<\/strong> \u2014 your total living expenses, including existing EMIs and commitments.<\/li>\n<li>Select the <strong>Term of Loan<\/strong> from 1 to 20 years. Longer terms allow a bigger loan but increase total interest.<\/li>\n<li>Enter the <strong>Annual Interest Rate<\/strong> offered by your lender as a percentage, e.g. 8 for 8%.<\/li>\n<li>Read the results: <strong>Home Loan Value<\/strong> is the loan amount your surplus income can support, <strong>Total Interest<\/strong> is what you would pay over the term, and <strong>Monthly Payment<\/strong> is the EMI (your eligible surplus).<\/li>\n<\/ol>\n<h2>How the Calculator Works<\/h2>\n<p>Rather than asking \"what is the EMI for a given loan amount?\", this calculator answers the more practical question: <em>how much can I borrow given what I can actually afford to pay each month?<\/em> It starts from your budget \u2014 total income minus expenditure \u2014 and treats that surplus as your maximum EMI.<\/p>\n<p>The loan amount is then computed as the present value of a series of identical monthly payments, discounted at the monthly interest rate. This is the standard annuity formula used by banks for amortising home loans, and it is the same mathematics behind our <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-calculator\/\">Mortgage Calculator<\/a> and <a href=\"https:\/\/wpcalc.com\/en\/finance\/loan-calculator\/\">Loan Calculator<\/a>, just applied in reverse.<\/p>\n<p>The <strong>Total Interest<\/strong> figure deserves attention. In the default example, interest of about Rs. 2.64 million is 72% of the amount borrowed \u2014 a typical outcome for long-term home loans. A longer term or a higher rate inflates this share quickly, which is why comparing rates and prepaying early matter so much. If you already have a specific loan offer and want to check the payment schedule instead, the <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-payment\/\">Mortgage Payment<\/a> calculator is the right tool.<\/p>\n<h2>The Effect of the Interest Rate<\/h2>\n<p>Even a small change in the rate significantly changes how much you can borrow for the same EMI. The table below shows the loan value and total interest for the default example (EMI of Rs. 35,000 over 15 years), calculated with this tool:<\/p>\n<table>\n<thead>\n<tr>\n<th>Annual Interest Rate<\/th>\n<th>Home Loan Value (Rs.)<\/th>\n<th>Total Interest (Rs.)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>7%<\/td>\n<td>\u2248 3,893,900<\/td>\n<td>\u2248 2,406,100<\/td>\n<\/tr>\n<tr>\n<td>8%<\/td>\n<td>\u2248 3,662,400<\/td>\n<td>\u2248 2,637,600<\/td>\n<\/tr>\n<tr>\n<td>9%<\/td>\n<td>\u2248 3,450,800<\/td>\n<td>\u2248 2,849,200<\/td>\n<\/tr>\n<tr>\n<td>10%<\/td>\n<td>\u2248 3,257,000<\/td>\n<td>\u2248 3,043,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A one-percentage-point drop from 9% to 8% increases borrowing capacity by roughly Rs. 211,600 \u2014 money that can translate into a noticeably better property budget.<\/p>\n<h2>Assumptions and Limitations<\/h2>\n<ul>\n<li><strong>The full surplus goes to the EMI.<\/strong> The calculator assumes every rupee left after expenditure is available for the loan. In practice, keep a buffer for emergencies, savings and rising living costs \u2014 most financial advisers suggest an EMI no higher than 40\u201350% of total income.<\/li>\n<li><strong>Lenders apply their own rules.<\/strong> Banks typically use a Fixed Obligation to Income Ratio (FOIR) and may count only part of your other income, so the actual sanctioned amount can be lower than the calculated value. See the <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-home-loan-prequalification\/\">Mortgage Home Loan Prequalification<\/a> calculator for a lender-style estimate.<\/li>\n<li><strong>Down payment is excluded.<\/strong> The result is the loan component only; the property price can be higher if you contribute a down payment, typically 10\u201325% of the value.<\/li>\n<li><strong>The rate is assumed fixed for the whole term.<\/strong> Floating-rate loans and rate resets will change both the EMI and the total interest over time.<\/li>\n<li><strong>Other costs are not included.<\/strong> Processing fees, stamp duty, insurance and taxes are additional and are not part of this calculation.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Estimate how much housing loan your income can support. Enter your monthly income, other income, expenditure, loan term and interest rate to see your eligible EMI, loan amount and total interest.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-346","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=346"}],"version-history":[{"count":3,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/346\/revisions"}],"predecessor-version":[{"id":66112,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/346\/revisions\/66112"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}