Interest-free home loan calculator
Enter your home loan and an expected SIP return. See the SIP that could grow to all the interest you'll pay.
- Same years as your loan
- Your own return assumption
- Free, no sign-up
Plan the loan and the SIP together
Home loan deductions, the SIP's tax and your regime all affect how this works for you.
Questions people often ask
Is the SIP's growth taxed?
Gains on equity mutual funds held over a year are taxed at 12.5% above ₹1.25 lakh a year. This calculator shows the pre-tax figure.
Should the SIP be in equity?
A long horizon suits equity, but returns vary. The expected return here is your assumption, not a promise.
Earning back your interest
A SIP alongside the loan.
- Total interest = all EMIs − the loan.
- The SIP runs for the same years.
- If returns hold, it grows to that interest.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Mutual funds: investor education Securities and Exchange Board of India
Common questions
What is an interest-free home loan?
Not a real loan type. It's a plan: alongside your loan, run a SIP that could grow to the total interest you pay, so you earn it back over the same years.
How much SIP do I need?
For a ₹50 lakh, 20-year loan at 8.5%, about ₹7,071 a month, if the SIP earns 10% a year. That's about 16% of the EMI.
Is the loan really free?
No. You still pay every rupee of interest. The SIP's growth, if returns hold, offsets it.
What return should I assume?
That's your choice; returns aren't guaranteed. Try a cautious rate to see how much more SIP you'd need.
How is it worked out?
Total interest = EMI × months − loan. The SIP is the monthly amount, invested at the start of each month, that grows to that total at your expected return.
Is it better than prepaying?
It depends on whether investments beat your loan rate after tax. Our prepay-or-invest calculator compares the two.
