Loan Calculator
Calculate your EMI, total interest and payment schedule for any loan
Loan Calculation Results
| Month | Payment Date | EMI | Principal | Interest | Balance |
|---|
Current Loan Interest Rates
Here are the approximate interest rates being offered by major banks for different types of loans:
| Loan Type | Rate Range | Typical Term | Processing Fee |
|---|---|---|---|
| Home Loan | 8.00% - 9.50% | 15-30 years | 0.5% - 1% |
| Car Loan | 7.50% - 11.00% | 1-7 years | 1% - 2% |
| Personal Loan | 10.50% - 18.00% | 1-5 years | 1% - 3% |
| Education Loan | 8.50% - 12.00% | 5-15 years | 0% - 1% |
| Business Loan | 11.00% - 16.00% | 1-7 years | 1% - 2.5% |
Note: Interest rates are approximate and may vary based on your credit score, loan amount, employment status, and other factors. Last updated: August 15, 2023.
Loan Calculation Examples
The Equated Monthly Installment (EMI) is calculated using this formula:
The total interest paid over the entire loan term:
About Loan Calculator
Our Loan Calculator is a powerful tool designed to help you estimate your monthly payments, total interest, and payment schedule for various types of loans. Whether you're planning to buy a home, a car, or need a personal loan, this calculator provides accurate calculations to help you make informed financial decisions.
EMI Calculation
Calculate your Equated Monthly Installment (EMI) based on loan amount, interest rate, and tenure.
Payment Breakdown
View detailed breakdown of principal and interest components in your monthly payments.
Amortization Schedule
Get a complete month-by-month repayment schedule showing how your loan balance decreases over time.
Interest Analysis
Understand how much total interest you'll pay over the entire loan tenure.
Understanding Different Loan Types
Different types of loans are designed for specific purposes and come with varying terms and conditions:
- Home Loans: Long-term loans (typically 15-30 years) used to purchase residential property. They usually offer lower interest rates compared to other loan types because they're secured by the property.
- Car Loans: Medium-term loans (typically 3-7 years) specifically for purchasing vehicles. Interest rates are moderate, and the vehicle serves as collateral.
- Personal Loans: Short to medium-term loans (typically 1-5 years) that can be used for various purposes like medical expenses, home renovations, or debt consolidation. These loans generally have higher interest rates as they are often unsecured.
When selecting a loan, it's important to consider not just the EMI amount, but also the total interest you'll pay over the loan term. A longer loan term will result in lower monthly payments but higher total interest costs.
Frequently Asked Questions
What is EMI and how is it calculated?
EMI (Equated Monthly Installment) is the fixed amount that you pay to the lender on a specific date each month until the loan is fully repaid. It consists of both principal and interest components.
The EMI is calculated using the formula: EMI = P × r × (1 + r)^n / [(1 + r)^n - 1], where P is the principal amount, r is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the total number of monthly installments.
How does loan tenure affect my EMI and total interest?
Loan tenure significantly impacts both your EMI amount and total interest paid:
- Shorter tenure: Higher EMI but lower total interest paid
- Longer tenure: Lower EMI but higher total interest paid
For example, a ₹20 lakh home loan at 8.5% interest would have an EMI of approximately ₹17,364 for a 20-year tenure, with total interest of ₹21.67 lakhs. The same loan with a 10-year tenure would have an EMI of ₹24,651, but the total interest would be only ₹9.58 lakhs.
What factors affect loan interest rates?
Several factors influence the interest rate offered on your loan:
- Credit Score: Higher credit scores typically qualify for lower interest rates
- Loan Type: Secured loans (like home loans) generally have lower rates than unsecured loans (like personal loans)
- Loan Amount and Tenure: The size and duration of the loan can affect the interest rate
- Income and Employment: Stable income and employment history may help secure better rates
- Market Conditions: Prevailing economic conditions and central bank policies affect base lending rates
- Relationship with Lender: Existing customers may receive preferential rates
Can I make prepayments on my loan?
Yes, most lenders allow prepayments (paying extra amount toward your loan principal), but the terms vary:
- Some lenders charge prepayment penalties, especially for fixed-rate loans
- Home loans typically have more favorable prepayment terms compared to personal loans
- Making prepayments reduces your loan tenure or EMI and saves on future interest payments
It's advisable to check the prepayment terms with your lender before taking a loan if you plan to make prepayments in the future.
How accurate is this loan calculator?
This loan calculator provides reasonably accurate estimates based on the standard amortization formula used by most financial institutions. However, actual loan terms may vary due to:
- Rounding differences in calculation methods
- Additional fees and charges not accounted for in the calculator
- Changes in interest rates for floating rate loans
- Payment schedules that differ from the calendar month structure
For the most accurate information specific to your situation, consult directly with your lender.
Disclaimer
The calculations provided by this loan calculator are for illustrative and educational purposes only. The actual EMI, interest amounts, and other figures may vary based on the specific terms offered by your financial institution.
Factors like processing fees, administrative charges, insurance premiums, and other costs are not included in these calculations. Additionally, for floating rate loans, changes in interest rates will affect your EMI and total interest paid.
We recommend consulting with a financial advisor or your lending institution for precise information tailored to your specific circumstances before making any financial decisions.