How much interest will you pay on a home loan?
On a long home loan you repay the bank far more than you borrowed. At 8.15%, a Rs 50 lakh loan over 20 years costs about Rs 51.5 lakh in interest, which is 103% of the amount borrowed. Over 30 years the same loan costs about Rs 84 lakh in interest. The table below shows the total interest for common loan sizes and tenures at the rate you enter.
Total interest by loan size and tenure
| Loan | 10 years | 15 years | 20 years | 25 years | 30 years |
|---|
Each cell: total interest, and as a share of the loan amount.
Constant-rate illustration. A floating-rate loan changes with the benchmark; see what a constant-rate calculator misses.
How to read it
- Interest rises faster than tenure. Going from 20 to 30 years lowers the EMI a little and raises the total interest a lot.
- Interest is front-loaded: in the early years most of each EMI is interest.
- A part-payment early in the loan saves far more than the same amount later. See the prepayment calculator.
Questions
How much interest do I pay on a Rs 50 lakh home loan over 20 years?
At 8.15%, about Rs 51.5 lakh, roughly the same as the amount borrowed. At 9% it is about Rs 58 lakh. Use the table above for other rates and tenures.
Why is total interest so high on a long loan?
Because interest is charged on the outstanding balance for every month. A longer tenure keeps the balance high for longer, so interest accumulates.
Does this include a floating-rate change?
No. It assumes one rate for the whole loan. On a floating-rate loan the rate resets and the real total can be higher or lower.