Financial Calculators
Calculate EMIs, loans, investments, and more with our easy-to-use financial calculators.
Loan Calculator – Calculate Personal, Home & Car Loan EMI
Calculate monthly loan payments, total interest, and view detailed amortization schedules for personal loans, home loans, car loans, and business loans. Compare different loan options and find the best terms for your financial needs.
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
Home Loan
Mortgages for purchasing property
Car Loan
Auto loans for vehicle purchase
Business Loan
Loans for business expansion or working capital
Student Loan
Education loans for higher studies
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.
🚗 Car Loan
For purchasing new or used vehicles. Secured against the vehicle with fixed interest rates.
💼 Personal Loan
For personal expenses, medical emergencies, or debt consolidation. Unsecured loans based on credit score.
🏢 Business Loan
For business expansion, working capital, or equipment purchase. Can be secured or unsecured.
📚 Education Loan
For higher education expenses including tuition, books, and living costs.
💰 Gold Loan
Secured against gold jewelry with quick approval and competitive interest rates.
Loan EMI Calculation Formula
The standard formula used to calculate loan EMI is:
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.