What is the difference between a mortgage and a regular home loan?

In many contexts, especially in countries like India, the terms 'mortgage' and 'home loan' are used interchangeably. A mortgage is technically a loan where real estate is used as collateral. Since a home loan is taken to purchase a house, and the house itself serves as the collateral, it is a type of mortgage.

How can I reduce my total interest payment?

The best way to reduce the total interest paid on your mortgage is to choose a shorter loan tenure. A 15-year loan will have higher monthly payments than a 30-year loan, but you will pay significantly less interest over the life of the loan. Another strategy is to make prepayments towards your principal whenever you have extra funds, which also reduces the loan term and total interest.

Does this calculator include taxes and insurance?

No, this calculator only calculates the principal and interest (P&I) components of your monthly payment. It does not include other potential costs associated with homeownership like property taxes, homeowner's insurance, or maintenance fees, which are often bundled into the monthly payment by lenders in some countries (though less common in India).

Mortgage Calculator

Estimate your monthly mortgage payments and understand the total cost of your home loan.

Loan Details

Home Loan Amount₹50,00,000

Interest Rate (% p.a.)7.50%

Loan Tenure (Years)30 Years

Monthly Payment

₹34,961

Principal Amount₹50,00,000

Total Interest₹75,85,861

Total Payment₹1,25,85,861

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About the Mortgage Calculator

Empowering you to make informed home-buying decisions.

What is a Mortgage?

A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral for the loan. For most people, buying a home is the single largest financial commitment they will make. This calculator is designed to demystify the cost of a mortgage by breaking it down into a predictable monthly payment (often called an Equated Monthly Instalment or EMI), helping you to understand your financial commitment before you sign on the dotted line.

How to Use This Calculator

This interactive calculator helps you instantly estimate your mortgage payments. Simply use the intuitive sliders to adjust the 'Home Loan Amount' you wish to borrow, the annual 'Interest Rate' offered by your lender, and the 'Loan Tenure' in years over which you'll repay the loan. The monthly payment, the total cost, and the pie chart will all update automatically as you adjust the sliders, allowing you to experiment with different scenarios in real-time. You can also click the "Recalculate" button to refresh the results at any time.

Principal vs. Interest

Your monthly mortgage payment consists of two key parts: Principal and Interest.

Principal: This is the actual amount of money you borrowed to buy the home. Each payment you make reduces this amount.
Interest: This is the cost of borrowing the money, paid to the lender. It's calculated on the outstanding loan balance.

In the early years of your loan, a larger portion of your payment goes towards paying off the interest. As you continue to make payments and the loan principal decreases, the interest portion also reduces, and a larger part of your EMI goes towards reducing the principal. The pie chart visually represents the total principal versus the total interest you'll pay over the life of the loan. It's often surprising to see that for long-term loans, the total interest paid can be a substantial amount, sometimes as much as or even more than the original loan amount itself. This highlights the importance of choosing the shortest possible loan tenure you can comfortably afford.