Loan Calculator
Plan your loan repayment with our comprehensive loan calculator. Calculate monthly payments, total interest, and view the complete amortization schedule for any loan type.
Borrowing Parameters
Loan Amount
₹50,00,000
48% of Total Cost
Total Interest
₹54,13,942
Interest over tenure
Monthly EMI
₹43,391/mo
Total: ₹1.04 Cr
EMI calculated monthly
Amortization Timeline
Loan Payment Formula
M = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1)
Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate, and n is the total number of payments. This standard amortization formula ensures equal monthly payments throughout the loan term.
Example Calculation
Personal Loan of ₹5,00,000 at 12% p.a. for 3 years
M = 5,00,000 × 0.01 × (1.01)³⁶ / ((1.01)³⁶ - 1)
Monthly Payment: ₹16,607 | Total Interest: ₹97,852
Understanding Your Loan
How Loan Calculators Help You Plan Better
A loan calculator is an essential financial planning tool that helps you understand the true cost of borrowing. By adjusting the loan amount, interest rate, and tenure, you can find a monthly payment that fits your budget while minimizing total interest costs.
Factors That Affect Your Loan Cost
The three key factors affecting your loan cost are: the principal amount (how much you borrow), the interest rate (the cost of borrowing), and the loan tenure (repayment period). Lower rates and shorter tenures save you money, while higher loan amounts naturally cost more.
Fixed vs Floating Interest Rates
Fixed interest rates remain constant throughout the loan tenure, providing predictable payments. Floating rates change with market conditions, potentially offering lower initial rates but with uncertainty. Your choice should depend on your risk tolerance and market outlook.
Smart Loan Repayment Strategies
Making extra payments or prepayments directly reduces your principal balance, saving you significant interest over the loan term. Even occasional lump-sum payments can shorten your loan tenure and reduce total interest costs substantially.
Frequently Asked Questions
What credit score do I need for a loan?
Most lenders prefer a credit score of 750 or above for favorable interest rates. Scores below 650 may result in higher rates or loan rejection.
What is a processing fee?
A processing fee is a one-time charge by the lender for processing your loan application, typically 0.5% to 2% of the loan amount.
Can I close my loan early?
Yes, most lenders allow early loan closure. However, some may charge prepayment penalties, especially for fixed-rate loans.
What is the difference between secured and unsecured loans?
Secured loans (like home loans) require collateral and typically have lower interest rates. Unsecured loans (like personal loans) don't require collateral but have higher rates.
How does loan tenure affect total interest?
Longer tenures result in lower monthly payments but significantly higher total interest. Shorter tenures have higher payments but much lower total interest cost.
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