Loan Calculator
Calculate EMI, total interest and full amortization schedule for any loan — free, instant, no signup
Monthly payment
Total interest
Total cost
| Payment # | Payment (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
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What is this Loan Calculator?
This free loan calculator computes your EMI (Equated Monthly Instalment), total interest payable, total loan cost, and a complete payment-by-payment amortization schedule for any fixed-rate loan. It works for home loans, car loans, personal loans, education loans, two-wheeler loans, and any other loan where you make fixed periodic payments until the balance reaches zero.
Unlike a simple EMI calculator that just tells you the monthly payment, this tool also generates a full amortization table — showing exactly how much of each payment goes toward principal and how much toward interest at every single payment, from the first to the last. This is the same schedule your bank uses internally, and seeing it helps you understand why most of your early EMIs barely reduce the principal, and when it makes financial sense to make a prepayment.
How to use this Loan Calculator — step by step
- Step 1 — Loan amount: Enter the total amount you are borrowing. For a home loan this is the loan sanctioned (not the property value). For a car loan it is the on-road price minus your down payment. For a personal loan it is the full disbursed amount.
- Step 2 — Annual interest rate: Enter the annual interest rate as a percentage. Use the rate quoted by your bank — typically 8.5–9.5% for home loans, 8.7–10.5% for car loans, and 10.5–24% for personal loans depending on your credit score and lender.
- Step 3 — Loan term: Enter the tenure in years. Home loans typically run 10–30 years; car loans 1–7 years; personal loans 1–5 years. Use this field to compare: try 10 years vs 20 years on the same home loan to see how much extra interest the longer tenure costs you.
- Step 4 — Payment frequency: Select Monthly (standard for all Indian loans), Bi-weekly (26 payments/year — popular in some international markets), or Weekly (52 payments/year). Monthly is the correct choice for all Indian bank loans. Bi-weekly and weekly frequencies reduce total interest by building balance faster.
- Step 5 — Click "Calculate loan": Instantly see your periodic payment amount, total interest over the full term, and total repayment cost. The full amortization schedule appears below — scroll through it to see every payment broken down.
- Step 6 — Read the amortization table: Each row shows: Payment number, Fixed payment amount, Principal portion, Interest portion, and Remaining balance. In early rows, the interest portion dominates. As you scroll down, notice the principal portion growing and interest shrinking — that is amortization at work.
Key features
- Standard reducing-balance EMI formula: EMI = [P × R × (1+R)^N] ÷ [(1+R)^N − 1] — the same formula RBI mandates for all bank loan calculations
- Full amortization schedule: Every payment shown — not just a summary. Scrollable table with sticky header for long loan terms
- 3 payment frequencies: Monthly, bi-weekly (26/year), weekly (52/year) — see how frequency affects total interest
- 3 result cards: Periodic payment, Total interest, and Total cost (principal + interest)
- Real-time recalculation: Results update as you type — instantly compare different amounts, rates, and tenures
- INR formatting: All values shown in Indian number format (lakhs/crores) with ₹ symbol
EMI and loan repayment in India — everything you need to know
India is one of the world's fastest-growing retail credit markets. Home loans, car loans, personal loans, and education loans are part of everyday financial life for millions of Indians. Yet most borrowers sign loan agreements without fully understanding how their EMI is calculated, how much of it goes toward interest vs principal, or how much total interest they will pay over the full tenure. This tool — and the knowledge below — will change that.
How EMI and amortization actually work
Your EMI (Equated Monthly Instalment) is a fixed amount you pay every month until the loan is fully repaid. While the EMI amount stays constant throughout the loan, what changes every month is the split between principal and interest. In the first month, interest is calculated on the full loan balance — so a large chunk of your EMI covers interest. By the last month, almost your entire EMI pays off principal, because the balance is nearly zero.
This shifting split is called amortization (from Latin: "to kill off slowly"). A loan is said to fully amortize when the final payment reduces the balance to exactly zero. The amortization schedule this calculator produces shows every single payment and its exact principal/interest split — the same data your bank has on file but rarely shows borrowers upfront.
A real example — ₹50 lakh home loan at 8.5% for 20 years
Enter these numbers in the calculator above. The results: EMI = ₹43,391/month. Total interest = ₹54,13,840. Total cost = ₹1,04,13,840. You borrow ₹50 lakh but repay over ₹1 crore. That extra ₹54 lakh is pure interest — more than the loan itself.
Now look at the first row of the amortization table: Payment 1 = ₹43,391. Of that, only ₹7,891 reduces the principal. The remaining ₹35,500 covers interest. You have paid ₹43,391 and your loan balance has dropped by only ₹7,891. This is why financial advisors strongly recommend making prepayments early in a home loan tenure — every extra rupee paid in the first 5 years saves 3–4× its value in interest over the loan life.
Now change the tenure to 15 years (same amount, same rate). New EMI = ₹49,218/month — ₹5,827 more per month. But total interest = ₹38,59,240 — a saving of over ₹15.5 lakh compared to the 20-year option. The amortization schedule shows why: a shorter tenure builds equity faster, so the balance on which interest accrues drops more quickly each year.
What affects your EMI and total loan cost
Loan amount
Directly proportional — double the loan amount, double the EMI and double the total interest at the same rate and tenure. This is why a larger down payment on a home or car is the single most effective way to reduce your total cost.
Interest rate
On a ₹50 lakh home loan for 20 years, going from 8.5% to 9.0% increases your total interest by over ₹3.5 lakh. A 0.25% rate difference = ₹1,753 more interest over 20 years. Always negotiate your rate before accepting a loan offer.
Loan tenure
Longer tenure = lower EMI but far more total interest. On a ₹50L home loan at 8.5%, choosing 20 years over 15 years saves ₹5,827/month but costs ₹15.5 lakh extra in interest. Use this calculator to find your ideal tenure trade-off.
Payment frequency
Bi-weekly payments (26/year) mean you make the equivalent of 13 monthly payments per year instead of 12. On a long home loan this can cut 2–4 years off your tenure and save significant interest. Not offered by Indian banks by default, but useful for international loan comparison.
Current loan interest rates in India (July 2025 reference)
Home loans: SBI offers from 8.50% p.a.; HDFC Bank from 8.70%; ICICI Bank from 8.75%; LIC Housing Finance from 8.50%; Axis Bank from 8.75%. Rates vary based on loan amount, tenure, credit score, and whether you opt for a floating or fixed rate. Use the calculator with your quoted rate to see the full cost before signing.
Car loans: SBI from 8.85%; HDFC Bank from 9.05%; ICICI Bank from 9.10%; Axis Bank from 8.75%; Kotak Mahindra Bank from 8.99%. Car loan tenures typically range 1–7 years. Enter your on-road price minus down payment as the loan amount.
Personal loans: SBI from 11.45%; HDFC Bank from 10.85%; ICICI Bank from 10.85%; Bajaj Finance from 11.00%; Axis Bank from 10.49%. Personal loans carry higher rates because they are unsecured — no collateral. A good credit score (750+) can help you negotiate better rates.
Education loans: SBI from 8.15% (up to ₹7.5 lakh) and 11.15% (above ₹7.5L); HDFC Credila from 9.50–13.25%; Axis Bank from 13.70–15.20%. Government banks offer lower rates; moratorium period (study + 6–12 months) means EMI starts only after you complete your course.
Two-wheeler loans: From 8.70% to 18% depending on lender and vehicle type. Electric vehicle two-wheeler loans sometimes attract subsidised rates under state government schemes.
Prepayment — the most powerful way to save on loans
Every prepayment you make reduces your outstanding principal, which reduces the interest calculated on future EMIs. Because Indian home loans are on a reducing-balance basis, a prepayment made in Year 3 saves far more total interest than the same prepayment made in Year 15. Here is why: in Year 3, the balance is still close to the original loan amount, so your prepayment triggers interest savings on a large base for the remaining 17 years. In Year 15, the balance is much smaller, so the interest savings are limited.
Use this calculator's amortization table to see the balance at any year — then consider making a lump-sum prepayment of that amount and recalculate with a shorter tenure or reduced EMI. RBI mandates that banks cannot charge prepayment penalties on floating-rate home loans. Fixed-rate loans may have a prepayment penalty of 1–3% — always check before prepaying.
Free, instant, no signup required — full amortization schedule included.
Frequently asked questions
How is the loan EMI calculated?
EMI is calculated using the reducing-balance formula mandated by RBI for all bank loans: EMI = [P × R × (1+R)^N] ÷ [(1+R)^N − 1], where P is the principal loan amount, R is the periodic interest rate (annual rate ÷ number of payments per year ÷ 100), and N is the total number of payments (years × payments per year). For a ₹10 lakh personal loan at 12% for 3 years (monthly payments): R = 12/12/100 = 0.01, N = 36. EMI = [10,00,000 × 0.01 × (1.01)^36] ÷ [(1.01)^36 − 1] = ₹33,214/month. Total interest = (₹33,214 × 36) − ₹10,00,000 = ₹1,95,704. This calculator applies this formula automatically — you just enter the numbers and get the full breakdown instantly.
What is an amortization schedule and why does it matter?
An amortization schedule is a complete table showing every loan payment from the first to the last, with each payment broken into its principal and interest components, plus the remaining loan balance after that payment. It matters for three key reasons: (1) Transparency — you see exactly how much of each EMI reduces your actual debt vs how much is bank profit. In the early years of a long home loan, 70–85% of each payment is interest. (2) Prepayment planning — the schedule shows your balance at any point, helping you decide when a lump-sum prepayment has the most impact. (3) Tax planning — the interest column directly corresponds to your Section 24(b) home loan interest deduction for income tax purposes (up to ₹2 lakh/year for self-occupied property). Many borrowers use the schedule to calculate their exact annual interest paid for ITR filing.
Can I use this for home loans, car loans and personal loans?
Yes — the EMI formula works identically for all fixed-rate, reducing-balance loans, regardless of purpose. Enter the sanctioned loan amount, your quoted annual interest rate, and the tenure. For home loans: use the loan amount (not property value), your bank's floating or fixed rate (typically 8.5–9.5%), and tenure of 10–30 years. For car loans: use on-road price minus down payment, rate of 8.7–10.5%, tenure of 1–7 years. For personal loans: use the disbursed amount, rate of 10.5–24% (varies with credit score), tenure of 1–5 years. For education loans: enter the loan amount and tenure after the moratorium period ends. Note: if your loan has a moratorium (EMI-free period), exclude that period from the tenure you enter — start from the date EMIs actually begin.
How does a longer loan tenure affect the EMI and total interest?
A longer tenure lowers your EMI but significantly increases the total interest you pay. The relationship is not linear — it is compounding. Example with ₹30 lakh home loan at 8.75%: 10 years — EMI ₹37,572, Total interest ₹15,08,640, Total cost ₹45,08,640. 15 years — EMI ₹29,891, Total interest ₹23,80,380, Total cost ₹53,80,380. 20 years — EMI ₹26,507, Total interest ₹33,61,680, Total cost ₹63,61,680. 25 years — EMI ₹24,612, Total interest ₹43,83,600, Total cost ₹73,83,600. Going from 10 to 25 years saves ₹12,960/month in EMI but costs ₹28.75 lakh extra in interest. The right tenure depends on your cash flow needs — but always try to choose the shortest tenure your monthly budget can comfortably support.
What is the difference between flat rate and reducing-balance rate?
This is one of the most important — and most misused — concepts in Indian lending. A flat rate calculates interest on the original loan amount for the entire tenure. A reducing-balance rate (also called diminishing balance) calculates interest only on the outstanding principal each month, which falls as you repay. For example, a 10% flat rate on a ₹1 lakh loan for 2 years = total interest of ₹20,000. The same loan at 10% reducing balance = total interest of ₹11,108. The flat rate appears lower (10%) but is actually equivalent to approximately 17–18% reducing balance. Some unregulated lenders and older vehicle loan schemes quote flat rates — always ask if the rate is flat or reducing before comparing. RBI requires banks and NBFCs to quote reducing-balance rates for loans, but some consumer finance products still use flat rates. This calculator uses the reducing-balance method — which is what all Indian bank loans use.
How do I use this calculator to decide between two loan offers?
Calculate each loan offer separately and compare the Total Interest figure — not just the EMI. Banks sometimes offer lower EMI via longer tenure while charging more total interest. Also compare the Total Cost (principal + all interest). Beyond what this calculator shows, also factor in: Processing fee (typically 0.5–2% of loan amount, charged upfront); Prepayment penalty (0–3% of outstanding principal for fixed-rate loans); Insurance premium (some lenders bundle expensive loan protection insurance — this is optional, not mandatory); and the MCLR/repo-linked rate reset for floating rate loans (your EMI can increase if the RBI repo rate rises). The true cost of a loan is the EMI × number of payments + all fees — not just the interest rate on the brochure.
Does making a prepayment reduce my EMI or my tenure?
When you make a prepayment on a home loan, most Indian banks give you the option of either: (a) Reducing your EMI while keeping the tenure the same, or (b) Reducing your tenure while keeping the EMI the same. Financially, option (b) is almost always better — reducing tenure means you exit the loan faster and pay less total interest. Reducing EMI frees up monthly cash flow but stretches the loan and accumulates more interest. For example, a ₹5 lakh prepayment on a ₹50L home loan (8.5%, 20 years remaining) at Year 5: if you reduce tenure, you save approximately ₹4.8 lakh in total interest and exit 3.5 years early. If you reduce EMI instead, you save only ₹1,200/month but still pay for nearly 20 years. Use this calculator to model both scenarios by entering the new reduced balance as the loan amount and comparing 15-year vs 20-year results.