Works for any type of loan — personal, car, or home. For home loans specifically, see the EMI Calculator.
What is a loan calculator, and who needs it?
This loan calculator works out the monthly instalment (EMI) for a loan with a fixed interest rate. Enter the loan amount, the yearly interest rate and the tenure in months or years, and it shows your EMI, the total interest and the total amount you will repay.
It suits anyone comparing offers for a personal, car, two-wheeler, education or consumer-durable loan, checking whether an EMI fits their monthly budget, or seeing how the tenure changes the cost before they talk to a bank. For home loans you can also try our EMI Calculator.
Formula used
- Monthly rate r = Annual rate ÷ 12 ÷ 100
- Number of months n = Tenure in months (or years × 12)
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount
- Total payment = EMI × n, and Total interest = Total payment − P
Worked example
Take a loan of ₹3,00,000 at 11% a year for 36 months. The monthly rate is 11 ÷ 12 ÷ 100 = 0.009167, and (1 + r)^36 is about 1.3889. EMI = 3,00,000 × 0.009167 × 1.3889 ÷ 0.3889 = about ₹9,822. Total payment is about ₹3,53,578, so you pay about ₹53,578 as interest.
Now stretch the same loan to 5 years (60 months). The EMI falls to about ₹6,523, but the total payment rises to about ₹3,91,364 and the interest to about ₹91,364. Choose Years, enter 5, and the calculator shows these numbers.
Frequently asked questions
Should I choose a longer or shorter tenure?
A longer tenure lowers the monthly EMI but increases the total interest you pay. A shorter tenure raises the EMI but saves interest. In the example on this page, stretching the same ₹3,00,000 loan from 36 to 60 months cuts the EMI by about ₹3,300 but adds about ₹37,800 in interest.
Does the calculator use flat or reducing balance interest?
It uses the reducing balance method, where interest is charged on the loan outstanding each month. Some lenders and dealers quote a flat rate on the full amount, which works out to a much higher true yearly rate. Ask for the reducing balance rate before comparing offers.
Why is my bank's EMI slightly different?
Banks round the EMI, may charge interest for the days before your first instalment, and can include insurance or fees in the loan. A change in the lender's rate also changes the EMI. Small differences are normal, so ask your lender for the repayment schedule.
Can I use this calculator for a home loan?
Yes. The maths is the same for any loan with equal monthly instalments. Home loans usually have floating rates, so your EMI or tenure can change when the lender revises its rate, and this calculator assumes the rate stays the same throughout.
Why do I see no result when I enter 0% interest?
The calculator needs an interest rate above zero before it shows a result. For a true zero-interest loan, simply divide the loan amount by the number of months to get the instalment.
Limitations and accuracy
The calculator assumes a fixed rate and equal monthly instalments from the first month. It does not include processing fees, GST on fees, insurance, part-prepayment or foreclosure charges, or a moratorium period. It also multiplies the unrounded EMI by the number of months, so totals can differ from a bank statement by a few rupees. Treat the results as a planning estimate and confirm the final figures with your lender. This tool is for information only and is not financial advice.