Calculate your loan repayments, total interest paid, and monthly installments
This calculator uses the standard EMI formula to compute monthly repayments. For a quick comparison, also check our EMI Calculator and Mortgage Calculator.
A loan calculator helps you estimate your monthly repayment (EMI), total interest payable, and total amount you'll repay over the loan tenure. Whether it's a home loan, car loan, personal loan, or education loan — the underlying math is the same and is based on the EMI (Equated Monthly Installment) formula used by all Indian banks and NBFCs.
Unlike simple interest loans (where interest is calculated only on principal), most bank loans use reducing balance method — meaning interest is calculated on the outstanding balance each month, which decreases as you repay.
Loan Amount: ₹50,00,000 | Rate: 8.5% p.a. | Tenure: 20 years (240 months)
Monthly rate (r): 8.5 ÷ 12 ÷ 100 = 0.007083
Monthly EMI ≈ ₹43,391
Total Payment: ₹43,391 × 240 = ₹1,04,13,840
Total Interest Paid: ₹1,04,13,840 − ₹50,00,000 = ₹54,13,840 (108% of principal!)
Simple interest = P × R × T / 100 (interest stays constant). EMI loans use the reducing balance method — each month you pay interest only on the remaining principal. This results in a higher total interest payment than it might initially appear, but the monthly payment stays fixed (equated).
An amortization schedule is a complete table showing every monthly payment broken down into principal and interest components. In early EMIs, most of the payment goes towards interest. Over time, the principal component increases and interest decreases. Use our Amortization Calculator to see the full schedule.
1. Prepay: Even small lump-sum payments significantly reduce total interest. 2. Shorter tenure: A 10-year loan pays much less interest than a 20-year loan at the same rate. 3. Negotiate rate: A 0.5% lower rate on a ₹50L loan over 20 years saves ~₹3-4 lakhs. 4. Larger down payment: Reduces the principal borrowed.
Most banks in India require a CIBIL score of 750 or above for home and personal loans at the best interest rates. Scores between 650–749 may still get loans but at higher rates. Below 650, loan approval becomes difficult. Maintain timely payments on existing credit cards and loans to improve your score.