Loan Calculator
Calculate monthly loan payments (EMI), total interest payable, and total repayment with yearly amortization. Compare loan scenarios with interactive charts.
About This Calculator
This Loan Calculator helps you determine your monthly payment (EMI), total interest payable, and the full amortization schedule for any loan. Whether you're planning a home loan, car loan, or personal loan, understanding your repayment structure is essential for financial planning.
The calculator uses the standard EMI formula and provides yearly breakdowns showing how much of each payment goes toward principal versus interest.
EMI Formula:
EMI = [P x r x (1+r)^n] / [(1+r)^n - 1]
Where P is loan amount, r is monthly interest rate, and n is number of months.
Regional Notes:
India: Uses ₹ (INR). Home loan rates 8.5-10.5%, car loans 7.5-9.5%, personal loans 10-24%. Interest on home loans up to ₹2 lakh/year is tax deductible under Section 24(b).
United States: Uses $ (USD). Mortgage rates 6-8%, auto loans 5-8%, personal loans 7-36%. Mortgage interest is tax deductible for itemized filers.
United Kingdom: Uses £ (GBP). Mortgage rates 4.5-6.5%, personal loans 6-20%. Consider mortgage interest and arrangement fees when comparing offers.
Frequently Asked Questions
How does the Loan Calculator work?
Enter your loan amount, annual interest rate, and repayment tenure in years. The calculator uses the standard EMI formula to compute your monthly payment, total interest, and total amount payable with yearly breakdowns.
What is the loan EMI formula?
EMI = P x r x (1+r)^n / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly installments.
How is total interest calculated?
Total interest = (EMI x total months) - loan amount. For example, a ₹10,00,000 loan at 10% for 5 years: EMI = ₹21,247, total payment = ₹12,74,820, total interest = ₹2,74,820.
What factors affect loan payments?
Three factors determine your loan payment: Loan amount (higher = higher payment), Interest rate (higher = higher payment), and Tenure (longer = lower monthly payment but more total interest). Use this calculator to compare different scenarios.
How can I reduce loan interest?
Reduce interest by: 1) Making a larger down payment, 2) Choosing a shorter tenure, 3) Improving credit score for better rates, 4) Comparing offers from multiple lenders, 5) Making prepayments when possible, 6) Transferring to a lower-rate lender.
What is the difference between reducing balance and flat rate?
Reducing balance interest is calculated on the outstanding principal each month, so interest decreases over time. Flat rate interest is calculated on the original loan amount for the entire tenure. Reducing balance is more common and typically results in lower total interest.
How does loan tenure affect total interest?
Longer tenure means lower monthly payments but much higher total interest. For a ₹10,00,000 loan at 10%: 5 years = ₹2,74,820 interest (EMI ₹21,247), 10 years = ₹5,82,358 interest (EMI ₹13,215), 20 years = ₹13,12,734 interest (EMI ₹9,650).
What is loan amortization?
Amortization is the process of gradually paying off a loan through regular payments. Each payment covers both interest and principal, with the interest portion decreasing over time as the principal balance reduces. The full schedule is called an amortization schedule.