Loan Calculator

About the Loan Calculator

The Loan Calculator estimates your monthly payment, total interest and total amount payable from the loan amount, annual interest rate and tenure in years. Use it to compare offers from different lenders and to see how a longer or shorter tenure changes the cost of borrowing.

How to use the Loan Calculator

1. Enter the loan amount in rupees.
2. Enter the annual interest rate and the tenure in years.
3. Click Calculate to see the monthly payment and the total interest.

Frequently asked questions

How does tenure affect the total interest?

A longer tenure lowers the monthly payment but increases the total interest you pay over the life of the loan.

Can I use it for home, car and personal loans?

Yes. It works for any loan with a fixed interest rate and equal monthly payments.

How the Loan Calculator works

Use this calculator before you take a personal loan, vehicle loan, education loan or consumer-durable loan. You enter the loan amount, the annual interest rate and the tenure in years, and it returns the monthly EMI, the total interest and the total amount you will repay.

It uses the standard reducing-balance formula: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. The total payment is EMI × n and the total interest is the total payment minus the principal.

Worked examples

Suppose you borrow ₹3,00,000 at 12% per year. For a 2-year tenure the EMI is about ₹14,122.04 and the total interest is ₹38,929.00. If you stretch the same loan to 4 years, the EMI drops to about ₹7,900.15, but the total interest rises to ₹79,207.23.

The lower EMI feels easier, but it costs you ₹40,278.23 more in interest. Running both scenarios takes only a few seconds with this tool.

Tips and common mistakes

• Choose the shortest tenure whose EMI still fits comfortably in your monthly budget. A common rule of thumb is to keep total EMIs within roughly 40% of your take-home income.
• Compare lenders on the total cost, not only on the interest rate. Processing fees and prepayment charges can change the picture.
• Check whether the quoted rate is fixed or floating, and whether it is a flat rate or a reducing-balance rate.
• Keep a buffer for emergencies. A loan that fits only on paper can become stressful if your income changes.

More questions about the Loan Calculator

How is this different from the EMI calculator?

Both use the same formula. The loan calculator shows the loan amount, EMI, total interest and total payment together, which is convenient when you want a quick overall picture of a loan offer.

Can I enter a tenure in months?

Enter the tenure in years. For 18 months, type 1.5. For 30 months, type 2.5.

What happens if the interest rate is 0%?

Some promotional offers carry 0% interest. In that case the EMI is simply the loan amount divided by the number of months.

Is the result exact?

It is an estimate. Banks may round EMIs, change the rate, or add charges, so confirm the final figures in your loan agreement.

Related tools

• EMI Calculator – focus on the monthly instalment
• Simple Interest Calculator – interest on a fixed principal
• Compound Interest Calculator – growth with compounding
• Salary / CTC Calculator – estimate your monthly in-hand pay before applying

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