# Down payment calculator: how much to put down on a home and what it does to your EMI and total interest

> The down payment decides how much you borrow, which sets the EMI and the interest you pay over 20 years. This guide shows the numbers for 10% to 40% down, the rules lenders follow, and the other costs on top, so you can choose an amount you can live with.

Published 2026-10-09 by Toolcloak. 3 minute read. Original: https://toolcloak.pages.dev/articles/down-payment-calculator-how-much-to-put-down-on-a-home-and-what-it-does-to-your-emi-and-total-interest
Related free tool: [Down Payment Calculator (Home & Car)](https://toolcloak.pages.dev/tools/down-payment-calculator)

The **down payment** is the part of the price you pay from your own money on day one. The rest comes from the loan. A bigger down payment means a smaller loan, a lower EMI and much less interest, but it also uses up cash that you may need for emergencies, furnishing or other goals. The decision is a balance, and the calculator shows both sides.

> **In short**
> - **Loan = price × (1 − down payment%).** On a ₹50 lakh home with 20% down, you pay **₹10,00,000** now and borrow **₹40,00,000**.
> - At 8.75% for 20 years the EMI is about **₹35,348**, total interest **₹44.84 lakh** and total cost **₹94.84 lakh**.
> - Lenders cap the **loan-to-value (LTV)** ratio, so there is a minimum down payment. Check your lender's current rule.
> - Registration, stamp duty, brokerage and furnishing come **on top** of the down payment.

## How the numbers are worked out

**Example: ₹50 lakh home, 20% down, 8.75% for 20 years**

1. **Work out the down payment.** ₹50 lakh × 20% = **₹10,00,000**.
2. **Find the loan.** ₹50 lakh − ₹10,00,000 = **₹40,00,000**.
3. **Calculate the EMI.** Loan ₹40,00,000 at 8.75% for 240 months gives **₹35,348** a month.
4. **Add up the totals.** EMI × 240 = ₹84.84 lakh. Interest = **₹44.84 lakh**. Total cost with the down payment = **₹94.84 lakh**.

*The tool returns the down payment, loan amount, monthly EMI, total interest and total cost.*

Try it: [Down Payment Calculator (Home & Car)](https://toolcloak.pages.dev/tools/down-payment-calculator). Enter the price, the down payment percentage, the interest rate and the tenure to see the loan, EMI and total interest.

## What each down payment does

| Down payment | Paid now | Loan amount | Monthly EMI | Total interest |
| --- | --- | --- | --- | --- |
| 10% | ₹5,00,000 | ₹45,00,000 | ₹39,767 | ₹50.44 lakh |
| 15% | ₹7,50,000 | ₹42,50,000 | ₹37,558 | ₹47.64 lakh |
| 20% | ₹10,00,000 | ₹40,00,000 | ₹35,348 | ₹44.84 lakh |
| 30% | ₹15,00,000 | ₹35,00,000 | ₹30,930 | ₹39.23 lakh |
| 40% | ₹20,00,000 | ₹30,00,000 | ₹26,511 | ₹33.63 lakh |

*All rows use a ₹50 lakh price, 8.75% interest and 20 years. A bigger down payment cuts the EMI and the total interest in direct proportion to the loan.*

**Total interest by down payment (₹ lakh)**

|  | Value |
| --- | --- |
| 10% | ₹50.4 L |
| 20% | ₹44.8 L |
| 30% | ₹39.2 L |
| 40% | ₹33.6 L |

*Moving from 20% to 30% down saves about ₹5.60 lakh of interest and lowers the EMI by about ₹4,419 a month.*

## Lender rules set the minimum

Lenders cannot finance the whole price. The Reserve Bank of India's loan-to-value limits for home loans have been tiered by loan size: up to 90% for loans of ₹30 lakh or less, up to 80% above that and up to ₹75 lakh, and up to 75% for larger loans. In plain terms that is a minimum down payment of roughly 10%, 20% or 25%. Check the current rule with your lender, because limits can change.

**Minimum down payment by loan size (rough, check with your lender)**

|  | Value | Note |
| --- | --- | --- |
| Loan up to ₹30 lakh | 10% | Up to 90% financed |
| ₹30 lakh to ₹75 lakh | 20% | Up to 80% financed |
| Above ₹75 lakh | 25% | Up to 75% financed |

*Banks may ask for more depending on your income, credit score and the property. These are upper limits on what they can lend, not promises.*

> **The down payment is not the only cash you need:** Stamp duty, registration, legal checks, brokerage, society transfer fees, loan processing fees and moving or furnishing costs are separate. They can add several percent of the price, so keep a cash buffer beyond the down payment.

## Putting more down or investing the difference

Paying an extra ₹10 lakh down reduces your loan interest by ₹5.60 lakh over 20 years at 8.75%. Investing the same ₹10 lakh at an assumed 10% a year would grow to about ₹67.3 lakh in 20 years, but that is not guaranteed and is taxed, while the interest you avoid is a certain saving. A loan rate close to or above your realistic investment return favours a larger down payment. A much lower loan rate favours keeping cash invested, as long as you keep an emergency fund.

**Extra ₹10 lakh: down payment or invest?**

| Put it into the down payment | Keep it invested |
| --- | --- |
| Saves ₹5.60 lakh | Grows to about ₹67.3 lakh |
| EMI falls by about ₹4,419 a month | Assumes 10% a year, not guaranteed |
| A sure saving at the loan rate | Stays available in emergencies |
| Cash is locked in the property | Returns are taxed and can fall |

*Neither is always better. A certain saving is worth more than an uncertain gain of the same size.*

## Choosing your own number

1. **Find the minimum** your lender requires for the loan size you need.
2. **Keep an emergency fund** of at least six months of expenses outside the down payment.
3. **Add the one-time costs** such as stamp duty and registration to the cash you need.
4. **Check the EMI** against your income. Many lenders look at EMIs of up to about 40% to 50% of take-home pay.
5. **Try three down payments** in the calculator and compare the EMI and total interest.

## Frequently asked questions

### How much down payment should I make on a home loan?

At least the minimum your lender requires, often 10% to 25% depending on the loan size. A larger down payment lowers the EMI and the total interest. Keep enough cash for emergencies and one-time costs.

### How do I calculate the loan amount from the down payment?

Multiply the price by the down payment percentage, then subtract from the price. For a 50 lakh home with 20% down, the down payment is 10 lakh and the loan is 40 lakh.

### How does the down payment affect my EMI?

The EMI is proportional to the loan amount at a fixed rate and tenure. Cutting the loan by 25%, for example by raising the down payment from 20% to 40%, cuts the EMI by 25% too.

### Does the down payment include stamp duty and registration?

No. Those are separate charges paid on top of the down payment, and the loan usually does not cover them.

### Is it better to pay a bigger down payment or invest the money?

It depends on the loan rate, your expected returns, taxes and how much cash you need to keep. A bigger down payment is a certain saving at the loan rate. Investment returns are not guaranteed.

### Can I use the calculator for a car or other loan?

Yes. Enter the price, the down payment percentage, the loan rate and the tenure. The [Down Payment Calculator](https://toolcloak.pages.dev/tools/down-payment-calculator) works for any loan with equal monthly instalments.