Monthly loan payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). A ₹5 lakh personal loan at 14% for 3 years has an EMI of ₹17,089 and total interest of ₹1.15 lakh. Always confirm whether the quoted rate is flat or reducing-balance — a 12% flat rate is roughly equivalent to a 21% reducing-balance rate.
About this calculator
A loan calculator quickly computes the monthly payment, total interest, and total repayment amount for any fixed-rate amortising loan. If you are planning a personal loan at 10.50–24%, a business loan at 10–15%, a gold loan at 8–11%, or a Loan Against Property at 9–12%, this tool gives you the full picture before you apply.
In India, the most common mistake borrowers make is comparing loans by their stated interest rate without accounting for the loan type (flat rate vs reducing balance). A 12% flat rate loan is equivalent to roughly 21% on reducing balance. Always verify the rate type with your lender before using this calculator.
The Loan Calculator uses the same formula as the EMI Calculator — they are identical mathematically. Use the EMI Calculator for a product-specific interface or the Personal Loan Calculator for a detailed breakdown including processing fees and FOIR analysis.
After clearing any high-interest loan, redirect the EMI amount into a SIP. Even 3 years of a ₹15,000/month SIP at 12% grows to ₹6.4 lakh — roughly offsetting the interest you paid on a typical ₹5L personal loan.
Common uses
- Calculate monthly payments for a personal loan
- Compare total interest for different loan amounts and rates
- Determine the most affordable tenure for a given loan amount
- Check if a loan is affordable before applying
Frequently asked questions
How is a loan payment calculated?
Loan payment = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate, and n is the number of months. This formula gives you the fixed monthly payment that repays both principal and interest over the loan term.
What affects my monthly loan payment the most?
The three main factors are: loan amount (higher principal = higher payment), interest rate (even a 1% difference matters over a long term), and loan tenure (longer terms lower monthly payments but increase total interest).
What is the difference between principal and interest in a loan?
Principal is the original amount borrowed. Interest is the cost of borrowing that money, charged as a percentage of the outstanding balance. Each monthly payment covers some interest and reduces the principal, with early payments weighted more toward interest.