Loan Calculator — EMI, Total Interest & True Cost of a Loan

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Monthly EMI: ₹16,607; Exact: ₹16,607.15 · 3 years (36 instalments)
Total principal: ₹5,00,000
Total interest: ₹97,858
Total payment: ₹5,97,858

Principal₹5,00,00083.6%

Interest₹97,85816.4%

Interest as % of loan: 19.6%; Extra you repay on top of the amount borrowed.
Interest share of repayments: 16.4%; Portion of all EMIs that goes to interest.

What this loan really costs

Based on the values you entered above. Updates as you change them.

For every ₹1 you borrow, you repay about ₹1.20 — interest adds 20% to the loan amount.

If the rate rises by 1 percentage point to 13.00%, your EMI goes up by ₹240 a month and total interest by ₹8,634.

Stretching the tenure by 5 years to 8 years lowers the EMI by ₹8,481 but adds ₹1,82,279 in interest.

Amortization schedule

How each payment splits between principal and interest. Early payments are mostly interest; later ones mostly principal. Years are loan years counted from your first EMI.

Principal paidInterest paid

Year-by-year breakdown of principal, interest and outstanding balance
Year	Principal	Interest	Total paid	Balance
1	₹1,47,208	₹52,078	₹1,99,286	₹3,52,792
2	₹1,65,877	₹33,408	₹1,99,286	₹1,86,915
3	₹1,86,915	₹12,371	₹1,99,286	₹0

Figures are rounded to the nearest rupee for display. Lenders may round EMIs differently and the final instalment is adjusted so the balance reaches exactly zero.

The four numbers that define a loan

Loan amount (principal)

The amount you borrow and must repay, excluding interest. If a processing fee is deducted upfront, you may receive less than this figure but still repay all of it.

Interest rate

The annual price of borrowing, expressed as a percentage. It may be fixed for the whole loan or floating, linked to a benchmark and changing over time. Personal loans usually carry higher rates than secured loans because there is no collateral.

Loan tenure

How long you take to repay. Personal loans typically run from a few months to several years; this calculator accepts tenure in either months or years. Tenure is the main lever for trading a lower EMI against higher total interest.

EMI

The fixed monthly instalment that results from the three numbers above. Each EMI covers that month's interest plus a slice of principal, calculated as:

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

Here P is the principal, r the monthly rate (annual rate ÷ 1,200) and n the number of months. For a detailed walk-through of this formula, see the EMI Calculator.

Example: a ₹5 lakh personal loan

Here is the same ₹5,00,000 loan with different rates and tenures:

₹5 lakh loan at different rates and tenures
Rate · Tenure	EMI	Total interest	Interest as % of loan
11% · 3 years	₹16,369	₹89,297	17.9%
12% · 3 years	₹16,607	₹97,858	19.6%
14% · 3 years	₹17,089	₹1,15,197	23.0%
12% · 5 years	₹11,122	₹1,67,333	33.5%

Three percentage points of rate (11% to 14%) adds about ₹26,000 of interest over three years. Two extra years of tenure at 12% adds almost ₹70,000, even though the EMI falls by about ₹5,500.

Watch out for flat-rate quotes

Some lenders and dealers quote a flat rate. At a 12% flat rate, the ₹5 lakh, 3-year loan would carry ₹1,80,000 of interest (12% × ₹5 lakh × 3 years). That is about 1.8 times the ₹97,858 charged at a 12% reducing-balance rate. Always ask which method a quoted rate uses, and compare the total repayment.

Ways to borrow more cheaply

Borrow only what you need. Every rupee borrowed carries interest for the whole tenure.
Check your credit score first. A stronger credit history often qualifies for a lower rate.
Choose the shortest affordable tenure, and prepay when you can if the lender's prepayment charges are low.
Compare total cost across lenders, including processing fees and insurance, not the EMI alone.
Consider a secured option, such as a loan against fixed deposits, which is often cheaper than an unsecured personal loan.

Buying a home? Use the Home Loan Calculator, which also works out down payment, loan-to-value and upfront cash.

Frequently asked questions

What is the difference between a flat rate and a reducing-balance rate?

A flat rate charges interest on the full original amount for the entire tenure, even as you repay. A reducing-balance rate charges interest only on what you still owe. At the same headline number, a flat-rate loan costs much more. This calculator uses the reducing-balance method.

Can I use this calculator for a personal loan, car loan or education loan?

Yes, for any loan with a fixed interest rate and equal monthly instalments. For education loans with a moratorium period, interest that accrues during the moratorium is usually added to the principal, so enter the expected amount at the start of repayment.

Does the calculator include processing fees?

No. Processing fees, documentation charges and loan insurance are separate costs. If a fee is deducted from the disbursed amount, you receive less but repay the full loan, which raises your effective cost.

How do I compare two loan offers?

Run each offer with its exact amount, rate and tenure, then compare total interest and total repayment rather than just the EMI. Add each lender's fees to its total. The offer with the lowest total cost is cheaper, even if its EMI is higher.

Should I take a longer tenure to reduce my EMI?

Only if the lower EMI is necessary for your budget. A longer tenure always increases total interest. A ₹5 lakh loan at 12% costs about ₹97,858 in interest over 3 years but about ₹1,67,333 over 5 years.

Why does the interest share of my repayments matter?

It shows how much of every rupee you repay goes to the lender rather than reducing your debt. It is a quick way to compare loans of different sizes and tenures on the same footing.