Loan Calculator

A Loan Calculator estimates your monthly loan payment (EMI) before you borrow. Enter the loan amount (principal), the annual interest rate, and the tenure, and the calculator shows the monthly payment and the total amount you would repay over the life of the loan. You can use it to compare loan offers, check whether a monthly payment fits your budget, and see how a shorter tenure or a lower rate changes the total cost of borrowing.

What the Loan Calculator Does

It calculates loan payments, interest, and the total repayment for a loan repaid in equal monthly instalments, from three inputs: the principal, the annual interest rate, and the tenure. It shows the monthly payment (EMI) and the total amount repaid. The total interest is the total amount repaid minus the principal. It is useful for home loans, car loans, personal loans, and education loans — any loan repaid in regular monthly instalments at a stated interest rate.

EMI Formula

For a loan repaid in equal monthly instalments, the monthly payment is:

EMI = P × r × (1+r)^n / ((1+r)^n − 1)

• P is the principal — the loan amount you borrow.
• r is the monthly interest rate — the annual interest rate divided by 12.
• n is the total number of monthly payments — the tenure in years multiplied by 12.

In plain terms: the formula spreads the principal plus interest evenly across all monthly payments, so you pay the same amount each month. If the interest rate is 0%, the monthly payment is simply the principal divided by the number of payments: EMI = P / n.

How to Use It

1. Enter the loan amount (principal) you plan to borrow.
2. Enter the annual interest rate offered by the lender.
3. Enter the tenure — the number of years over which you will repay the loan.
4. Click Process.
5. Review the result: the monthly payment and the total amount repaid.
6. Change the amount, rate, or tenure to compare scenarios, such as a shorter tenure or a lower rate.

Frequently Asked Questions

What does EMI mean?

EMI stands for Equated Monthly Instalment. It is the fixed amount you pay each month toward repaying the loan, covering both principal and interest, until the loan is fully repaid.

How do tenure and the interest rate affect my payments?

A longer tenure lowers the monthly payment but increases the total interest paid over the life of the loan. A shorter tenure raises the monthly payment but lowers the total interest. A higher interest rate raises both the monthly payment and the total amount repaid; a lower rate lowers both.

Are the results exact?

No. The results are estimates for planning. Your lender’s exact payment may differ because of rounding, payment dates, fees, taxes, insurance, and the lender’s calculation method. This calculator is not financial advice. Check the full loan terms with your lender before borrowing.