Loan Calculator
The Loan Calculator shows your monthly payment, total interest and total cost for any loan. It works for home loans, car loans, personal loans and more.
Loan Calculator
The total amount you plan to borrow.
The annual interest rate.
How long you will repay the loan.
What the result means
The monthly payment is the fixed amount you pay each month. Total interest is the extra cost of borrowing. Total payment is everything you will pay back, including the principal.
How to use this calculator
- 1Enter the loan amount you want to borrow.
- 2Enter the annual interest rate.
- 3Enter the loan tenure in years.
- 4Press Calculate to see your monthly payment and full loan summary.
The formula
The calculation uses a standard, verifiable formula. Here it is in its simplest form.
What each variable means
| Symbol | Name | Description |
|---|---|---|
| P | Principal | The loan amount you borrow. |
| r | Monthly rate | Annual interest rate divided by 12 and 100. |
| n | Months | Loan tenure in months. |
Step-by-step example
Example: ₹10,00,000 loan at 9% for 15 years
- 1Monthly rate = 9% / 12 = 0.75% = 0.0075
- 2Months = 15 × 12 = 180
- 3Monthly payment = 10,00,000 × 0.0075 × (1.0075)¹⁸⁰ / ((1.0075)¹⁸⁰ − 1)
- 4Monthly payment ≈ ₹10,142
- 5Total payment = ₹10,142 × 180 = ₹18,25,560
- 6Total interest = ₹18,25,560 − ₹10,00,000 = ₹8,25,560
Result
Monthly payment ≈ ₹10,142
What changes the result
- Higher loan amounts increase monthly payments proportionally.
- Higher interest rates increase both monthly payments and total interest.
- Longer tenures reduce monthly payments but increase total interest.
- Shorter tenures increase monthly payments but reduce total interest.
Edge cases to be aware of
Unusual situations handled correctly
- Zero interest loans: monthly payment equals principal divided by months.
- Very long tenures can result in total interest exceeding the principal.
- Interest-only loans are not supported by this calculator.
Common mistakes
Avoid these errors
- Using annual rate instead of monthly rate in the formula.
- Entering tenure in months when the input expects years.
- Forgetting processing fees and other charges.
Assumptions
- Fixed interest rate for the entire tenure.
- Equal monthly payments throughout.
- No prepayment or restructuring.
Limitations
- Does not include processing fees, insurance or taxes.
- Floating-rate loans will have changing payments.
- This is an estimate, not a loan quote.
Key terms to know
Loan principal+
Monthly payment+
Interest rate+
Total interest+
Total repayment+
Installment loan+
Amortization+
Fixed vs variable rate+
Real-world scenarios
Comparing two tenures
A ₹10,00,000 loan at 9%: one borrower picks 5 years, another picks 15 years.
What it means: The 5-year loan has a much higher monthly payment but far lower total interest. The 15-year loan is cheaper each month but can cost several lakhs more overall. There is no universal 'right' answer — it depends on cash flow.
Rate difference of 1%
Two lenders offer the same ₹10,00,000 loan over 10 years at 8% and 9%.
What it means: The 1% difference changes the monthly payment modestly but can add up to a meaningful amount of total interest over the full term. This is why comparing APRs and total cost matters, not just the headline monthly figure.
Borrowing the minimum
You need ₹5,00,000 but only borrow ₹4,00,000 by adjusting your budget.
What it means: Borrowing less reduces both the monthly payment and total interest. Even a smaller reduction in the loan amount can meaningfully lower the overall cost of borrowing.
Extra principal payments
You add a one-time lump sum to the principal after the first year.
What it means: Extra principal payments reduce the balance faster, which shortens the term and cuts total interest. Since interest is calculated on the remaining balance, early extra payments have the largest effect.
Related concepts
Loan vs EMI
A loan calculator focuses on the total cost and monthly payment for any loan. The EMI calculator shows the same idea with a detailed principal-versus-interest breakdown and a balance-over-time chart.
Cost of borrowing vs growth
The percentage you pay on a loan is the mirror of the percentage you can earn on an investment. Comparing them helps you decide whether to borrow or save.
Simple interest on short loans
For very short terms, simple and compound interest behave almost identically. For long loans, the compounding that happens inside each monthly payment matters.
Saving before borrowing
Using a growth calculator to build a down payment reduces the amount borrowed and the lifetime interest cost.
What this estimate includes
| Cost item | Included | Description |
|---|---|---|
| Principal repayments | Included | The part of each payment that reduces what you originally borrowed. |
| Interest on the balance | Included | The cost of borrowing, based on the remaining balance each month. |
| Processing or origination fees | Not included | One-time charges lenders often add to the principal or deduct from the disbursed amount. |
| Insurance | Not included | Optional loan protection cover that lenders sometimes require. |
| Prepayment penalties | Not included | Fees for paying off part or all of the loan ahead of schedule. |
| Late payment fees | Not included | Additional charges when an installment is missed or delayed. |
Frequently asked questions
What is the difference between a loan calculator and an EMI calculator?+
How can I reduce the total interest on my loan?+
What is a good loan tenure?+
What is amortization?+
What happens if I make extra payments?+
How does the interest rate affect my loan?+
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