How this calculator works
This calculator uses the standard reducing-balance EMI formula, the same one banks and NBFCs use for most secured term loans in India:
EMI = P × r × (1+r)n / ((1+r)n − 1), where P is your loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments (tenure in years × 12).
Total payment over the loan term is EMI × n. Total interest is total payment minus the principal.
"Mortgage loan" vs "home loan" — an important distinction
In the US and UK, "mortgage" almost always means a loan to purchase a house. In India, the terminology works differently. A home loan is what you take to buy or construct a property — the property being purchased is itself the collateral. A mortgage loan, in common Indian banking usage, usually means a Loan Against Property (LAP): you pledge a property you already own as collateral to raise funds for any purpose — business expansion, a child's education, medical expenses, debt consolidation, or anything else.
This calculator is built for that second sense — Loan Against Property. If you're financing the purchase of a home, use the Home Loan EMI Calculator instead; the EMI math is identical, but the typical rates, tenures, and use case differ.
If a mortgage loan against a business property is part of a larger transaction — company incorporation, GST, or filings — Shunya's CA team can help.
Talk to a CA →Is a mortgage the same as a home loan in India?
Not usually. In common Indian usage, "mortgage loan" most often refers to a Loan Against Property (LAP) — you pledge a property you already own as collateral to borrow funds for any purpose. A home loan, by contrast, is specifically for purchasing or constructing a house, with the property being purchased itself as security. This calculator is built for the Loan Against Property sense of "mortgage." If you're financing a home purchase, use the Home Loan EMI Calculator instead.
What can be used as collateral for a mortgage loan?
Typically residential or commercial property you already own, free of major disputes and with clear title. Lenders assess the property's market value and typically lend a percentage of that value, not the full amount.
Is the interest rate lower than a personal loan?
Usually yes. Because a mortgage loan / Loan Against Property is secured by property, lenders generally price it lower than an unsecured personal loan. The exact rate still depends on the lender, your credit profile, and the property itself — enter your lender's quoted rate above.
How is the EMI on a mortgage loan calculated?
Using the standard reducing-balance EMI formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments (tenure in years × 12). This is the same formula banks use for most secured and unsecured term loans in India.
Can I prepay a mortgage loan to reduce interest?
Yes — prepaying reduces your outstanding principal early, which cuts the total interest you'd otherwise pay over the remaining tenure. This calculator shows a standard fixed-EMI schedule and doesn't model prepayment scenarios; check with your lender on prepayment charges, which vary by loan type and lender.
This tool is for quick estimation only and is not a substitute for professional financial or tax advice. Interest rates are user-entered assumptions, not rates offered by Shunya or any specific lender. For your specific situation, consult your lender and a practicing CA.
Sorting out compliance around a business loan or property transaction?
Shunya's CA team handles company registration, GST, and filings — fully online.
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