Loan Calculator

Understanding your loan repayment

This calculator shows what a loan will really cost: the monthly payment, the total amount repaid and the total interest. It works for personal loans, car loans, education loans and any other loan that is repaid in equal monthly instalments on a reducing balance.

The formula behind the result

Monthly payment = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the amount borrowed, r is the annual rate divided by 12 and 100, and n is the number of months.

Worked example

Borrow ₹5,00,000 at 10% a year for 5 years (60 months). The monthly payment is about ₹10,624. You repay ₹6,37,411 in total, so the loan costs about ₹1,37,411 in interest. If you can afford a 4-year term instead, the payment rises to roughly ₹12,681 but the interest drops to around ₹1.09 lakh.

Before you sign a loan agreement

• Ask for the annual percentage rate (APR) or all-in cost, which includes fees, not just the headline interest rate.
• Check for prepayment or foreclosure charges. Some lenders charge 2–5% of the outstanding amount for closing early.
• Keep total EMIs across all loans below roughly 40% of your monthly take-home income, a common lender guideline for staying comfortable.
• Never borrow only because the EMI looks small. A long tenure can hide a very high total cost.

Frequently asked questions

What is the difference between principal and interest?

Principal is the money you borrowed. Interest is the price of borrowing it. Every instalment pays both, and the split shifts toward principal over time.

Can I use this for a credit card balance?

Only roughly. Credit cards charge interest daily and at much higher rates, and minimum payments change each month. This tool is designed for fixed-term instalment loans.