What is Loan Calculator?
Loan Calculator computes your monthly EMI, total interest payable, and the full month-by-month amortization schedule for any loan — home loans, car loans, personal loans, or any fixed-rate installment loan.
The calculator uses the reducing balance method — the same method used by all Indian banks and most lending institutions worldwide. Each month’s interest is calculated only on the remaining principal balance.
Key Loan Concepts
EMI
Equated Monthly Installment — the fixed amount you pay every month, combining principal repayment and interest.
Amortization
The process of paying off debt over time. Early payments are mostly interest; later payments shift toward principal.
Total Interest
The total interest paid over the full loan life — often surprises borrowers with how much it exceeds the principal.
How to Use Loan Calculator
Enter principal
Enter the loan amount — the total you're borrowing.
Set interest rate
Enter the annual interest rate as a percentage (e.g. 8.5 for 8.5% per annum).
Set tenure
Enter the loan tenure in months or years. Longer tenure = lower EMI but more total interest.
Read EMI
Monthly EMI, total interest, and total payment amount appear instantly.
View schedule
Scroll to the amortization table to see every month's principal and interest split.
Reading the Amortization Schedule
| Column | Meaning |
|---|---|
| Month | Payment number (1 = first payment) |
| EMI | Fixed monthly payment |
| Principal | Portion going toward debt reduction |
| Interest | Portion going to the lender as interest |
| Balance | Remaining loan amount after this payment |
In the early months, interest forms a large share of the EMI. As the balance decreases, the interest portion shrinks and the principal portion grows.
Tips & Common Mistakes
Compare tenures side by side. Run the calculator with 15 years and 20 years for the same loan. The EMI difference may be small, but the total interest difference can be several lakh rupees.
Processing fees increase the effective cost. A 1% processing fee on a ₹50 lakh loan is ₹50,000 — add it to your cost comparison across lenders.
Related Tools
- EMI Calculator — quick EMI calculation
- FD Calculator — compare savings vs loan cost
- Compound Interest Calculator — general compound growth