To compare two loans, line up their EMI, total interest, and total repayment for the same principal and tenure — not just the headline rate. A 0.25% rate difference on a ₹50 lakh, 20-year home loan changes total interest by ~₹1.7 lakh, but a 5-year tenure difference changes it by ₹15 lakh+. Always check processing fees (0.5–2%) and prepayment penalty before switching.
About this calculator
A loan comparison calculator lets you place two loan offers next to each other and compare them on every number that matters. Enter the principal, interest rate, and tenure for each option, and the calculator shows the monthly EMI, total interest paid, and the yearly outstanding balance for both.
Banks and lenders advertise interest rates prominently but rarely show the total cost upfront. A slightly lower rate on a longer tenure can cost more overall. This calculator makes that tradeoff visible before you sign anything.
Common uses
- Compare a 15-year vs 20-year home loan to see total interest difference
- Decide between a bank loan and an NBFC offer with different rates
- Check whether a lower EMI option is worth the extra interest it generates
- Compare secured vs unsecured loan costs before applying
- Evaluate refinancing by comparing your current loan against a new offer
Frequently asked questions
What should I look at when comparing two loans?
Compare EMI, total interest paid, and total repayment amount. A lower EMI is not always better if it comes with a longer tenure that increases total interest significantly. Also check for processing fees, prepayment penalties, and whether the rate is fixed or floating.
How much difference does 0.5% interest rate make over a long loan?
On a ₹50 lakh home loan for 20 years, 0.5% lower rate (say 8% vs 8.5%) saves roughly ₹1.8 lakh in total interest. The savings compound over time, so the longer the tenure, the bigger the impact of even a small rate difference.
Should I always choose the loan with the lower EMI?
Not necessarily. Lower EMI often means longer tenure, which means more total interest. If your cash flow is tight, the lower EMI helps month-to-month. If you can afford the higher EMI, a shorter loan saves money overall. Use this calculator to see the exact tradeoff for your numbers.