About the Under-construction EMI Calculator
What is the Under-construction EMI Calculator?
For an under-construction flat, banks release the loan in stages as construction progresses. Until possession, you pay only interest on the amount disbursed so far – the pre-EMI. The full EMI starts after the final disbursement.
This calculator assumes equal disbursements over the construction period and shows the total pre-EMI interest, the average monthly pre-EMI and the full EMI after possession.
How to use the Under-construction EMI Calculator
- Sanctioned Home Loan (₹) (sample: 60,00,000)
- Interest Rate (% per year) (sample: 8.5)
- Construction Period (months) (sample: 30)
- Loan Tenure after Possession (years) (sample: 20)
- Press Calculate Pre-EMI (results also refresh as you type). The result card shows the Total Pre-EMI Interest During Construction, along with Average pre-EMI per month, Last pre-EMI before possession, Full EMI after possession and Tax note.
Formula used
Pre-EMI in month m = Loan × m ÷ Construction months × Rate ÷ 12
- Full EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) on the full loan
Pre-EMI does not reduce the principal, so the full loan remains outstanding at possession.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Sanctioned Home Loan (₹) | 60,00,000 |
| Interest Rate (% per year) | 8.5 |
| Construction Period (months) | 30 |
| Loan Tenure after Possession (years) | 20 |
| Result | Value |
|---|---|
| Total Pre-EMI Interest During Construction | ₹6,58,750 |
| Average pre-EMI per month | ₹21,958 |
| Last pre-EMI before possession | ₹42,500 |
| Full EMI after possession | ₹52,069 |
| Tax note | Pre-construction interest is deductible in 5 equal instalments from the year of completion (within the ₹2 lakh limit, old regime) |
Tips for using the Under-construction EMI Calculator
- If you can, choose full EMI from the first disbursement: it starts reducing the principal immediately.
- Pre-construction interest is deductible in five equal parts from the year of completion, within the ₹2 lakh limit (old regime).
- Construction-linked plans are safer than paying most of the price upfront.