Loan Calculator

Calculate your loan EMI, total interest payable, and total amount with our free loan calculator. Get instant results for any loan amount, interest rate, and tenure.

Loan Amount (₹) Enter the principal loan amount you want to borrow

Annual Interest Rate (%) Enter the annual interest rate (e.g., 10.5 for 10.5%)

Loan Tenure

Enter loan tenure in years or months

Loan Calculation Results

Monthly EMI ₹0

Total Amount Payable ₹0

Total Interest Payable ₹0

Principal Amount ₹0

What is a Loan Calculator?

A loan calculator is a financial tool that helps you determine the Equated Monthly Installment (EMI) you need to pay for a loan. It calculates the monthly payment amount based on the loan principal, interest rate, and loan tenure. This calculator is essential for planning your finances and understanding the total cost of borrowing.

Whether you're planning to take a personal loan, home loan, car loan, or any other type of loan, our loan calculator provides accurate EMI calculations instantly. It helps you compare different loan options and make informed financial decisions.

How to Calculate Loan EMI?

The EMI (Equated Monthly Installment) is calculated using the following formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Where:

P = Principal loan amount
R = Monthly interest rate (Annual rate / 12 / 100)
N = Loan tenure in months

Step-by-Step Calculation Process:

Enter the loan amount (principal) you want to borrow
Input the annual interest rate offered by the lender
Select the loan tenure in years or months
Click "Calculate EMI" to get instant results

The calculator will display your monthly EMI, total amount payable over the loan tenure, and the total interest you'll pay to the lender.

Benefits of Using Our Loan Calculator

Instant Results: Get accurate EMI calculations in seconds without any complex manual calculations
Financial Planning: Plan your monthly budget by knowing your exact EMI amount in advance
Compare Options: Compare different loan offers by calculating EMIs for various interest rates and tenures
Transparency: Understand the breakdown of principal and interest components in your EMI
Free to Use: No registration required, completely free online tool
Mobile Friendly: Works seamlessly on all devices - desktop, tablet, and mobile

Factors Affecting Loan EMI

Several factors influence your loan EMI amount:

Loan Amount: Higher loan amounts result in higher EMIs
Interest Rate: Lower interest rates reduce your EMI burden
Loan Tenure: Longer tenures reduce monthly EMI but increase total interest payable
Credit Score: Better credit scores help you secure lower interest rates
Loan Type: Different loan types (secured vs unsecured) have different interest rates

Frequently Asked Questions (FAQs)

What is EMI in a loan?

EMI stands for Equated Monthly Installment. It is the fixed amount you pay every month to the lender until your loan is fully repaid. The EMI includes both principal and interest components.

How is loan EMI calculated?

Loan EMI is calculated using the formula: EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is the principal amount, R is the monthly interest rate, and N is the loan tenure in months.

What is the difference between reducing balance and flat interest rate?

In reducing balance method, interest is calculated on the outstanding principal, which decreases over time. In flat rate method, interest is calculated on the original principal for the entire tenure. Most loans use reducing balance method, which is more beneficial for borrowers.

Can I prepay my loan to reduce EMI?

Prepaying your loan reduces the principal amount, which can either reduce your EMI (if you opt for EMI reduction) or shorten your loan tenure (if you keep EMI same). However, some lenders charge prepayment penalties.

What happens if I miss an EMI payment?

Missing an EMI payment can result in late payment fees, negative impact on your credit score, and potential legal action by the lender. It's important to maintain a good payment history.

Is the loan calculator accurate?

Yes, our loan calculator uses the standard EMI formula and provides accurate results. However, the actual EMI may vary slightly based on processing fees, GST, and other charges levied by the lender.