Loan Calculator

Calculate monthly payments, total interest, and amortization schedule for any loan.

Loan Details

Country / Currency

Loan Amount

₹

Annual Interest Rate

Loan Term

Yrs

Start Date

Results

Enter loan details and click Calculate

Loan Calculator — Plan Your EMI Before You Borrow

A loan calculator helps you determine your Equated Monthly Instalment (EMI) before you sign any agreement. By entering the principal amount, annual interest rate, and loan tenure, you instantly see how much you'll pay each month, how much total interest you'll owe, and the full cost of borrowing. This empowers you to compare offers from multiple lenders and choose the one that fits your budget.

In India, personal loans range from 10%–24% per annum, home loans from 8%–9.5%, and car loans from 8.5%–12%. Even a 0.5% difference in rate on a ₹10,00,000 loan over 5 years saves you approximately ₹14,000. Using this loan calculator before approaching any bank — SBI, HDFC Bank, ICICI Bank, or Bajaj Finance — lets you negotiate from a position of knowledge.

What is a Loan?

A loan is a financial arrangement where a lender provides a specific sum of money (principal) to a borrower, who agrees to repay it with interest over a defined period. Loans are the most common form of formal borrowing and are available from banks, NBFCs, credit unions, and digital lenders for a wide range of purposes.

Loans are classified as secured (backed by collateral like property or vehicle — lower interest rates) or unsecured (no collateral required — higher interest rates due to greater lender risk).
The EMI (Equated Monthly Installment) is the fixed monthly payment calculated using the reducing-balance method: EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ − 1], where P is principal, r is monthly rate, and n is tenure in months.
Loan tenure and interest rate are inversely related to monthly EMI — longer tenure lowers EMI but dramatically increases total interest paid over the life of the loan.
Your CIBIL score (300–900) is the primary factor determining loan approval and interest rate — a score above 750 qualifies you for the lowest available rates from leading banks.

How to Use This Calculator

Enter the Loan Amount — the principal you wish to borrow (e.g., ₹5,00,000).
Enter the Annual Interest Rate as quoted by your lender (e.g., 10%).
Set the Loan Tenure in years and/or months (e.g., 3 years = 36 months).
Optionally select a Start Date to see an exact repayment schedule.
Click Calculate — your EMI, total interest, and amortization table appear instantly.
Adjust any value to compare scenarios — lower tenure vs lower EMI, different interest rates, etc.

EMI Formula

EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]

P = Principal loan amount
r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
n = Loan tenure in months
Example: ₹5,00,000 at 10% p.a. for 3 years (36 months)
r = 10 ÷ 12 ÷ 100 = 0.00833
EMI = 5,00,000 × 0.00833 × (1.00833)³⁶ / [(1.00833)³⁶ − 1]
EMI = ₹16,133/month
Total Payment = ₹5,80,788 | Total Interest = ₹80,788

Key Terms

EMI (Equated Monthly Instalment): A fixed payment made to the lender every month that includes both principal repayment and interest. The proportion of principal vs interest changes every month — early EMIs are mostly interest.
Principal: The original sum borrowed. Your EMIs gradually reduce the outstanding principal — this is called amortization.
Interest Rate (p.a.): The annual percentage rate charged on the outstanding principal. Always confirm whether the rate is flat or reducing-balance — most EMI loans use reducing-balance, which is cheaper than flat rate.
Loan Tenure: The total repayment period. Longer tenures lower your EMI but dramatically increase total interest. A ₹5,00,000 loan at 10% costs ₹80,788 in interest over 3 years but ₹1,37,446 over 5 years.
Processing Fee: A one-time upfront charge of 0.5%–2% of the loan amount deducted by the bank. On a ₹5,00,000 loan this is ₹2,500–₹10,000. It effectively raises your true cost of borrowing.
Prepayment: Paying extra above your EMI to reduce principal faster. Most Indian banks allow prepayment on floating-rate loans without penalty as per RBI guidelines. Prepaying ₹20,000 in month 12 of the above example saves ~₹8,000 in interest.

Tips

Always compare the total interest payable, not just the EMI. A lower EMI from a longer tenure is not always a better deal.
Check whether the rate is fixed or floating. Floating rates linked to EBLR (External Benchmark Lending Rate) can change quarterly, affecting your EMI or tenure.
Factor in processing fees, GST (18% on fees), and insurance premiums when comparing loan offers — these add to your effective cost.
If your CIBIL score is above 750, you qualify for the lowest available rates. Improving your score before applying can save thousands in interest.
Use the prepayment strategy: Even one extra EMI per year significantly cuts your total interest and closes the loan months earlier.
For tax purposes, home loan interest up to ₹2,00,000 per year is deductible under Section 24(b), while principal repayment up to ₹1,50,000 qualifies under Section 80C.

Frequently Asked Questions

EMI stands for Equated Monthly Instalment — a fixed amount paid every month until the loan is fully repaid. It is calculated using the formula: EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ−1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of months. For example, ₹5,00,000 at 10% for 36 months gives an EMI of ₹16,133.

Yes. A longer tenure lowers your monthly EMI but increases the total interest you pay. On ₹5,00,000 at 10%, a 3-year tenure means ₹80,788 in interest, while a 5-year tenure means ₹1,37,446. Only choose a longer tenure if a lower EMI is genuinely necessary for your monthly cash flow.

In a flat rate loan, interest is calculated on the original principal throughout the tenure. In a reducing-balance loan (the standard for most bank EMI loans), interest is calculated only on the outstanding principal, which decreases with each payment. A flat rate of 10% is equivalent to approximately 18–19% on a reducing-balance basis — always verify which method your lender uses.

Yes, for floating-rate loans from banks and NBFCs regulated by the RBI, there is no prepayment penalty as per RBI circular guidelines. For fixed-rate loans, lenders may charge a prepayment penalty of 2%–4% of the outstanding amount. Always check your loan agreement's prepayment clause before making bulk payments.

Processing fees are a one-time upfront cost that effectively increases the total cost of your loan. If you borrow ₹5,00,000 and pay a 1% processing fee of ₹5,000, you receive only ₹4,95,000 but pay EMIs on the full ₹5,00,000. This raises your effective interest rate. When comparing loan offers, always ask for the APR (Annual Percentage Rate), which includes all fees.

A CIBIL score of 750 or above is generally considered excellent and qualifies you for the lowest available interest rates. Scores between 700–749 may get you approved but at higher rates. Below 650, most banks will reject your application or charge significantly higher rates. You can improve your score by paying all EMIs and credit card bills on time, keeping credit utilization below 30%, and avoiding multiple loan applications simultaneously.