Loan Calculator

This calculator shows your monthly EMI, total payment over the life of the loan, and total interest paid — giving you the full picture of what borrowing really costs.

EMI Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where P = principal, r = monthly rate (annual ÷ 1200), n = total months.

How Tenure Affects Total Cost

Longer tenure = lower EMI but much higher total interest. On a ₹30 lakh home loan at 9%:

10 years — EMI: ~₹38,000 | Total interest: ~₹15.6 lakh
20 years — EMI: ~₹27,000 | Total interest: ~₹34.8 lakh
30 years — EMI: ~₹24,100 | Total interest: ~₹56.8 lakh

Extending by 20 years saves ₹14,000/month but costs ₹41 lakh more in interest.

Types of Loans

Home loan — 8–10%, up to 30 years, secured against property
Car loan — 9–12%, 1–7 years, secured against vehicle
Personal loan — 12–24%, 1–5 years, unsecured
Education loan — 8–15%, up to 15 years, sometimes subsidized

Frequently Asked Questions

What is the ideal EMI-to-income ratio?

Most financial advisors recommend keeping total EMIs below 40% of your take-home salary. Banks typically approve loans only if total EMIs (including the new loan) stay under 50–55% of gross income.

Does prepayment reduce EMI or tenure?

Most banks let you choose. Reducing tenure saves more interest. Reducing EMI improves monthly cash flow. If you have a stable income and the goal is to become debt-free faster, opt for tenure reduction.