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What is a Loan Calculator?
Personal loans, education loans, gold loans, or any other lump-sum borrowing — whatever the purpose, lenders in India almost always repay them through equal monthly instalments. Before you sign a loan agreement, it helps to know exactly what you're committing to each month and how much of your repayment goes toward interest versus principal. This general-purpose loan calculator works for any loan type as long as you know the principal, interest rate, and tenure.
EMI Formula
where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months.
Worked Example
Take a loan of ₹5,00,000 at 11% annual interest for 5 years (60 months). The monthly rate works out to r = 0.009167. Substituting into the EMI formula gives a monthly instalment of approximately ₹10,872. Over 60 months you'd repay a total of around ₹6,52,320, of which roughly ₹1,52,320 is interest — meaning you pay back about 30% more than what you originally borrowed.
How to Use This Calculator
- Enter the loan amount (principal) you wish to borrow.
- Enter the annual interest rate quoted by your lender.
- Enter the tenure in months (convert years to months if needed, e.g., 3 years = 36 months).
- Click Calculate to see your EMI, total payment, and total interest.
Tips Before You Borrow
- A longer tenure lowers your EMI but increases the total interest paid — always check both numbers, not just the monthly instalment.
- Compare offers from banks like SBI, HDFC, and ICICI as well as NBFCs, since interest rates for the same loan type can vary by 2–4 percentage points depending on your credit score.
- Prepaying even a small extra amount early in the tenure can meaningfully cut down total interest, since EMIs are interest-heavy in the initial years.
📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.