Loan Calculator

Compare total interest and payoff across loan terms.

Overview

Evaluates comprehensive loan payment schedules, total interest costs, and payoff timelines across personal, education, and auto credit.

Formula & Calculation Method

Total Repayment = EMI × Total Months | Total Interest = Total Repayment - Principal

Computes periodic amortisation and cumulative interest paid over the life of credit agreements.

Worked Example: ₹5 Lakh Personal Loan at 11% for 4 Years

Inputs: Principal = ₹5,00,000 | Interest Rate = 11% p.a. | Tenure = 48 Months

  • Monthly EMI computed via reducing balance = ₹12,933 per month
  • Total repayment = ₹12,933 × 48 = ₹6,20,784
  • Total interest cost = ₹6,20,784 - ₹5,00,000 = ₹1,20,784

Summary: Monthly EMI = ₹12,933 | Total Interest = ₹1,20,784 | Total Outflow = ₹6,20,784

Common Use Cases

  • Personal Loan Comparison: Compare offers from different banks to find the lowest effective borrowing cost.
  • Tenure Optimization: Find the sweet spot between affordable monthly instalments and minimum lifetime interest.
  • Debt Consolidation: Evaluate if merging multiple small loans into a single low-interest credit line saves money.

Frequently Asked Questions

What is the difference between secured and unsecured loans?

Secured loans (home, car) require collateral and carry lower rates; unsecured loans (personal, credit card) require no collateral and have higher rates.

Can I close a personal loan before tenure?

Yes, though lenders may charge a prepayment foreclosure fee (0% to 5%) depending on loan terms and RBI rules.

What is an amortization schedule?

A monthly table showing how each instalment is divided between principal reduction and interest charges.

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