Financial Calculators

Calculate EMIs, loans, investments, and more with our easy-to-use financial calculators.

Loan Calculator

Calculate monthly payments, total interest, and amortization schedule for different types of loans. Choose from preset loan types or customize your own parameters.

What is a Loan?

A loan is a sum of money that an individual or company borrows from a lender with the agreement that it will be paid back over time, usually with interest. Loans can be secured (backed by collateral) or unsecured (based on creditworthiness).

How Loan Payments are Calculated

Monthly loan payments are calculated using the loan amount (principal), interest rate, and loan term. The formula considers compound interest and ensures the loan is paid off by the end of the term.

Key Loan Terms

  • Principal: The original amount borrowed
  • Interest Rate: Annual percentage charged on the outstanding balance
  • Loan Term: Duration over which the loan must be repaid
  • EMI: Equated Monthly Installment - fixed monthly payment
  • Amortization: Process of paying off debt through regular payments

Types of Loans

Personal Loan

Unsecured loans for personal use

100,000 avg.12% interest3 years

Home Loan

Mortgages for purchasing property

5,000,000 avg.8.5% interest20 years

Car Loan

Auto loans for vehicle purchase

500,000 avg.9% interest5 years

Business Loan

Loans for business expansion or working capital

1,000,000 avg.14% interest5 years

Student Loan

Education loans for higher studies

400,000 avg.8% interest10 years

What is a Loan Calculator?

A loan calculator is a financial tool that helps you determine your monthly loan payments (EMI), total interest payable, and complete repayment schedule. It uses mathematical formulas to calculate how much you need to pay based on:

  • Loan Amount: The principal amount you're borrowing
  • Interest Rate: Annual percentage charged by the lender
  • Loan Tenure: Time period for loan repayment
  • Down Payment: Initial amount paid upfront (optional)

Understanding your loan payments before applying helps you make informed financial decisions and ensures the loan fits within your budget.

Types of Loans You Can Calculate

🏠 Home Loan

For purchasing or constructing residential property. Long-term loans (15-30 years) with competitive interest rates.

Amount: ₹5L - ₹5CrRate: 6.5-9%Tenure: 5-30 years

🚗 Car Loan

For purchasing new or used vehicles. Secured against the vehicle with fixed interest rates.

Amount: ₹1L - ₹1CrRate: 7-15%Tenure: 1-7 years

💼 Personal Loan

For personal expenses, medical emergencies, or debt consolidation. Unsecured loans based on credit score.

Amount: ₹10K - ₹50LRate: 10-24%Tenure: 1-5 years

🏢 Business Loan

For business expansion, working capital, or equipment purchase. Can be secured or unsecured.

Amount: ₹50K - ₹10CrRate: 12-18%Tenure: 1-10 years

📚 Education Loan

For higher education expenses including tuition, books, and living costs.

Amount: ₹50K - ₹50LRate: 8-12%Tenure: 5-15 years

💰 Gold Loan

Secured against gold jewelry with quick approval and competitive interest rates.

Amount: ₹10K - ₹1CrRate: 7-12%Tenure: 3-24 months

Loan EMI Calculation Formula

The standard formula used to calculate loan EMI is:

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Where:

  • P (Principal): Loan amount
  • R (Monthly Rate): Monthly interest rate (annual rate ÷ 12 ÷ 100)
  • N (Number of Installments): Total number of EMIs

Example: Home loan of ₹30,00,000 at 8% annual interest for 20 years:

Monthly Interest Rate = 8% ÷ 12 = 0.6667%

Total Installments = 20 × 12 = 240

EMI = [30,00,000 × 0.006667 × (1+0.006667)^240] / [(1+0.006667)^240 - 1]

Monthly EMI = ₹24,549

Total Amount Payable = ₹24,549 × 240 = ₹58,91,760

Total Interest = ₹58,91,760 - ₹30,00,000 = ₹28,91,760

Loan Calculator Examples

Home Loan Example

  • Loan Amount: ₹40,00,000
  • Interest Rate: 7.5% p.a.
  • Loan Tenure: 25 years

Monthly EMI: ₹30,166

Total Interest: ₹50,49,800

Total Payment: ₹90,49,800

Car Loan Example

  • Loan Amount: ₹6,00,000
  • Interest Rate: 9.5% p.a.
  • Loan Tenure: 5 years

Monthly EMI: ₹12,831

Total Interest: ₹1,69,860

Total Payment: ₹7,69,860

Personal Loan Example

  • Loan Amount: ₹3,00,000
  • Interest Rate: 14% p.a.
  • Loan Tenure: 3 years

Monthly EMI: ₹10,794

Total Interest: ₹88,584

Total Payment: ₹3,88,584

Who Should Use Loan Calculator?

🏠 Home Buyers

Calculate mortgage payments and determine affordability before house hunting.

🚗 Car Buyers

Compare auto loan options and understand monthly payment obligations.

💼 Business Owners

Calculate business loan EMIs for expansion and investment decisions.

💰 Loan Applicants

Anyone considering taking a loan should calculate payments beforehand.

📊 Financial Advisors

Create loan proposals and help clients understand repayment schedules.

🏦 Bank Officers

Provide quick loan calculations and payment schedules to customers.

Benefits of Using Loan Calculator

💡 Financial Planning

Plan your budget and ensure loan payments fit within your monthly income.

⚖️ Compare Options

Compare different loan amounts, rates, and tenures to find optimal terms.

📊 Transparency

Understand exactly how much interest you'll pay and payment breakdown.

⚡ Instant Results

Get instant calculations without complex manual math or spreadsheets.

📱 Mobile Friendly

Calculate loans on-the-go using our responsive mobile interface.

🔒 Secure & Free

Completely free tool with no registration required. Your data stays private.

Frequently Asked Questions About Loan Calculator

What is the difference between loan amount and principal?

The loan amount (or principal) is the money you borrow from the lender. This is the base amount on which interest is calculated. The actual amount you repay includes both principal and interest.

How does loan tenure affect my EMI?

Longer loan tenure reduces monthly EMI but increases total interest paid. Shorter tenure means higher monthly payments but lower total interest. Choose based on your monthly cash flow and total cost affordability.

What is loan amortization schedule?

An amortization schedule shows how each loan payment is split between principal and interest, and how much loan balance remains after each payment. It helps you understand how your loan balance reduces over time.

Why do early loan payments have more interest?

In the early stages of a loan, most of your EMI goes toward interest because interest is calculated on the full principal amount. As you pay down the principal, less interest is charged, and more of your payment goes toward principal reduction.

Can I prepay my loan to reduce interest?

Yes, prepaying your loan reduces the outstanding principal, which lowers future interest charges. Many lenders allow prepayment, though some may charge fees. Check your loan agreement for prepayment terms and charges.

What is the ideal debt-to-income ratio?

Financial experts recommend that your total monthly debt payments (including loan EMIs) should not exceed 40-50% of your monthly take-home salary. This ensures you have sufficient funds for other expenses and emergencies.

How accurate are loan calculator results?

Our calculator provides accurate results based on standard loan formulas. However, actual loan terms may vary based on lender policies, credit score, processing fees, and other charges. Always verify with your lender for exact terms.

What documents do I need for loan application?

Common documents include: identity proof (PAN, Aadhaar), address proof, income proof (salary slips, bank statements), credit report, and property documents (for home loans). Additional documents may be required based on loan type and lender requirements.

How can I improve my chances of loan approval?

Maintain good credit score (above 750), stable income, low debt-to-income ratio, save for down payment, compare multiple lenders, and provide all required documents. Higher credit score and down payment generally lead to better interest rates.

What is loan-to-value (LTV) ratio?

LTV ratio is the percentage of property value that you're borrowing. For example, if you buy a ₹1,00,000 property with ₹20,000 down payment, you're borrowing ₹80,000, making LTV ratio 80%. Lower LTV ratios generally qualify for better interest rates.

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