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FinCalc India

Loan Calculator

This loan calculator works for any term loan — home, car, personal, business or gold. It uses the reducing-balance method that banks and NBFCs in India apply.

Add an optional processing fee to see the true cost of borrowing, not just the EMI.

Assumptions used
  • Reducing-balance interest, constant rate through the tenure.
  • Only the processing fee is modelled among one-time charges.

Enter your details

₹
10,00010,00,00,000
%
136
years
130
%
05

One-time fee charged as a percentage of the loan amount.

Results

Monthly EMI

₹21,494

Total Interest
₹2,89,634
Total Repayment
₹12,89,634
Processing Fee
₹10,000
Total Cost of Loan
₹12,99,634
  • Principal₹10.00 L(78%)
  • Interest₹2.90 L(22%)
Year-wise amortisation schedule (5 rows)
YearPrincipal PaidInterest PaidTotal PaidBalance
1₹1,60,505₹97,421₹2,57,927₹8,39,495
2₹1,78,194₹79,733₹2,57,927₹6,61,301
3₹1,97,831₹60,096₹2,57,927₹4,63,470
4₹2,19,633₹38,294₹2,57,927₹2,43,837
5₹2,43,837₹14,090₹2,57,927₹0

Values are aggregated per year; the final row may be a partial year.

How the loan calculator works

The EMI is derived from the standard reducing-balance formula. Interest each month is charged on the outstanding principal only, so early EMIs are interest-heavy and later EMIs are principal-heavy.

EMI = P × r × (1 + r)^n ÷ [ (1 + r)^n − 1 ]

  • P = loan amount
  • r = monthly rate = annual rate ÷ 1200
  • n = number of monthly instalments

Total cost of a loan

The EMI alone understates what a loan costs. Add the total interest over the tenure and one-time charges such as the processing fee, documentation and stamping to compare offers fairly.

  • Total interest = (EMI × number of instalments) − loan amount
  • Total cost = total repayment + processing fee + other one-time charges
  • A lower rate with a higher fee can still be cheaper on a short tenure — always compare the total cost.

Tips before you borrow

Match the tenure to the asset

Borrow over a period no longer than the useful life or need for the asset. Stretching a short-term need over a long tenure multiplies the interest you pay.

Check the reset clause

On floating-rate loans, ask how often the rate resets and whether the lender changes the EMI or the tenure when the benchmark moves.

This calculator is for education and illustration only. Results are estimates based on the inputs and assumptions shown and are not financial, investment, tax or legal advice. Verify figures with your bank, a registered adviser or the relevant government department before acting.

Frequently asked questions

Which loans can I use this calculator for?

Any loan that is repaid in equal monthly instalments on a reducing balance — home, car, personal, education, business, gold or loan against property.

Is the processing fee added to the EMI?

No. The processing fee is a one-time charge, usually deducted upfront or added to the first EMI. This calculator shows it separately and in the total cost of the loan.

What is an amortisation schedule?

It is a table showing how each payment is split between interest and principal and how the outstanding balance falls over time. This calculator shows a year-wise summary.

How do I compare two loan offers?

Compare the total cost of the loan (total repayment plus one-time fees) over the same tenure, not just the headline interest rate or the EMI.

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