What is a loan calculator?
A loan calculator is a free online tool that answers the three questions every borrower asks: how much will I pay each month, how much can I borrow, and how long will it take to pay off the loan? Most tools only answer the first. This one solves for any of the three. Pick the value you want, fill in the rest, and the calculator shows the result along with total interest, the total amount you will pay and a year-by-year loan amortization schedule. It works for a home loan, car loan, bike or two-wheeler loan, personal loan, education loan, gold loan or loan against property – any loan repaid in equal monthly instalments on a reducing balance.
How to use this loan calculator
1. Calculate the monthly EMI
Choose Monthly EMI, enter the loan amount, the interest rate and the loan tenure in years. You get the monthly EMI, total interest and total payment. This is the classic loan calculator EMI use.
2. Find how much you can borrow
Choose Loan amount I can borrow, enter the monthly payment you are comfortable with, the rate and the tenure. The calculator works backwards and shows the largest loan that payment can repay. It is the quickest answer to "loan calculator how much can I borrow".
3. Find how long repayment will take
Choose Time to repay, enter the loan amount and the EMI you can afford. The calculator shows the number of months and years needed. If the EMI is lower than the monthly interest, it tells you – such a loan would never be repaid.
Extra payments
Add an extra amount every month to turn this into a loan calculator with extra payments. The extra goes straight to principal, so the loan closes sooner and the calculator shows the interest saved.
Loan calculator formula
All three modes use the same reducing-balance loan formula, rearranged:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P = EMI × (1 − (1 + r)−n) ÷ r
n = −log(1 − P × r ÷ EMI) ÷ log(1 + r)
- P = loan amount (principal)
- r = monthly interest rate = yearly rate ÷ 12 ÷ 100
- n = number of monthly payments
Loan calculation examples
Monthly EMI
A ₹5,00,000 loan at 10% for 3 years: r = 0.008333 and n = 36, so the EMI is ₹16,134. You pay ₹5,80,809 in total, of which ₹80,809 is interest.
Loan amount from EMI
You can pay ₹15,000 a month for 3 years at 10%. P = 15,000 × (1 − 1.008333−36) ÷ 0.008333 = about ₹4,64,869. That is the maximum you should borrow on those terms.
Tenure from EMI
You borrow ₹5,00,000 at 10% and pay ₹15,000 a month. n = −log(1 − 5,00,000 × 0.008333 ÷ 15,000) ÷ log(1.008333) ≈ 39.2, so the loan takes 40 months (3 years 4 months), with a smaller final payment.
How to calculate loan interest
For a reducing-balance loan, each month's interest = outstanding balance × monthly rate. In the first example, month one interest is ₹5,00,000 × 10% ÷ 12 = ₹4,167, and the other ₹11,967 of the EMI reduces the principal. Total interest = total paid − loan amount. For a flat-rate or simple-interest loan, interest = principal × rate × years; see the simple interest calculator.
Reducing vs flat rate
A flat rate charges interest on the original loan for the whole tenure, even as you repay it. A 10% flat rate on ₹5 lakh for 3 years costs ₹1,50,000 in interest, almost twice the ₹80,809 at a 10% reducing rate. When comparing a loan calculator reducing vs flat quote, convert everything to the reducing rate.
Reading the amortization schedule
The loan calculator with repayment schedule above shows, for each year, how much principal and interest you paid and what balance is left. Early payments are mostly interest; later ones are mostly principal. This yearly breakdown helps you decide when to prepay, check your lender's statement, and plan tax claims where interest is deductible.
What is loan tenure, and how does it change the cost?
Loan tenure is the time you take to repay. The table shows a ₹5 lakh loan at 10%:
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 2 years | ₹23,072 | ₹53,739 |
| 3 years | ₹16,134 | ₹80,809 |
| 5 years | ₹10,624 | ₹1,37,411 |
Pick the shortest tenure whose EMI fits your budget, then prepay whenever you can.
How to calculate loan eligibility based on salary
Lenders in India usually allow total EMIs of 40% to 60% of your net monthly income, after existing EMIs. If you take home ₹60,000 and have no other loans, a 50% limit means an EMI of up to ₹30,000. Enter that in Loan amount I can borrow mode with the lender's rate and tenure to estimate your eligibility. Your credit score, age, job stability and, for secured loans, the loan-to-value ratio (loan ÷ value of the asset) also decide the final amount.
How to pay off a loan early
- Add a fixed extra payment every month – even 5–10% of the EMI shortens the loan noticeably.
- Put bonuses and windfalls into lump-sum prepayments, early in the loan.
- Raise your EMI when your income rises.
- Check foreclosure charges: RBI bars them on floating-rate loans taken by individuals, but fixed-rate loans can carry a fee.
Loan calculator in Excel
Excel has a function for each mode: =PMT(10%/12, 36, -500000) gives the EMI, =PV(10%/12, 36, -15000) gives the loan amount, and =NPER(10%/12, -15000, 500000) gives the number of months. Our online loan calculator does all three without a spreadsheet. For loans with tax benefits and prepayment planning, try the home loan EMI calculator; for fees and APR, use the personal loan EMI calculator.
Loan calculator for every kind of loan
- Loan calculator for home loan – see also the dedicated home loan EMI calculator with tax benefits.
- Loan calculator for car and loan calculator vehicle loans – or the car loan EMI calculator with down payment.
- Loan calculator for bike and loan calculator two wheeler loans – enter the amount, rate and tenure.
- Loan calculator for personal loan – the personal loan page adds processing fees.
- Education, gold, property, tractor or solar loans – the calculator uses the same EMI maths for all of them, including a loan for solar panels. For an education loan, add any moratorium interest first (see below); for a loan on property or gold, enter the sanctioned amount, not the asset value.
Loan calculator monthly, yearly and month wise
In the loan calculator, the monthly result is the EMI and the schedule gives a yearly breakdown of principal, interest and balance, year wise. For a month-wise table, use the personal loan EMI calculator, which lists every month.
Loan calculator yearly payment and quarterly payments
Some farm, tractor and business loans are repaid yearly or quarterly. For quarterly payments, use r = yearly rate ÷ 4 and n = number of quarters in the loan calculator formula. For a yearly payment, use r = yearly rate and n = number of years. In Excel, =PMT(10%/4, 12, -500000) gives the quarterly instalment.
Loan calculator with moratorium
Education loans and some business loans have a moratorium – a period with no EMIs while interest keeps building up. For a loan calculator with moratorium estimate, first add the interest for that period to the loan (simple interest if your lender charges it that way), then enter the new balance here.
Loan calculator in simple interest and flat rate
A simple interest or flat rate loan charges interest on the full principal for the whole term; check one with the simple interest calculator. This loan calculator uses the reducing rate method, which is what banks use.
Loan calculator: how much will I pay?
The "Total amount paid" row answers loan calculator how much will I pay. How to calculate loan amount with interest: multiply the EMI by the number of months. How to calculate loan interest percentage of the amount borrowed: total interest ÷ loan × 100 – ₹80,809 ÷ ₹5,00,000 = 16.2% in the example. How to calculate loan interest rate when you only know the EMI: use the loan mode of the ROI calculator.
Loan calculator with down payment and on salary
For a loan calculator with down payment, subtract the down payment from the price and enter the rest as the loan amount. For a loan calculator on salary check, take 40–50% of your take-home pay as the EMI and use the "Loan amount I can borrow" mode. That also answers how to calculate loan eligibility and how to calculate loan amount you can get.
Loan calculator with prepayment and part payment
The extra-payment field makes this a loan calculator with prepayment and a loan calculator with part payment. For a one-time lump sum, subtract it from the balance in the schedule and recalculate.
Loan calculator India, USA and elsewhere
Amounts are in rupees by default for India; switch the currency at the top to see the same loan in dollars for the USA. The formula is the same everywhere. The calculator is free and online, so there is no download or app to install, and the Excel steps above replace an xls file.
Loan calculator in months
Short loans are often quoted in months rather than years. To use the loan calculator in months, divide the months by 12 and enter the result as years: 18 months is 1.5 years and 9 months is 0.75 years. A ₹2 lakh loan at 12% for 18 months works out to about ₹12,196 a month.
Checking an online loan app offer
Before you accept a loan from an online loan app, run its numbers through this loan calculator. A best loan app is not the one with the fastest approval but the one with the lowest total cost: many instant apps charge 24–36% a year plus a processing fee. A ₹50,000 loan at 30% for 6 months costs ₹9,077 a month and ₹4,462 in interest, before fees. Use only lenders that are RBI-registered banks or NBFCs (or partner with one) and that show the annual percentage rate upfront; a "free loan app" that hides its rate is a warning sign.
Mortgage calculator vs income: how much can you borrow?
Lenders compare your mortgage with your income before approving it. Indian banks usually keep all EMIs within 40–50% of net monthly income, and US lenders typically look for housing costs under about 28% of gross income. Try a few loan amounts here, or use the mortgage calculator for property tax and insurance, and keep the EMI inside that limit.
Loan calculator for Zambia, Zimbabwe and other countries
The reducing-balance formula is the same everywhere, so this loan calculator works for a loan in Zambia (kwacha), Zimbabwe or any other country. Enter the amount in your local currency and the annual rate your lender quotes; the monthly repayment is shown in the same units, ignoring the ₹ symbol.
Frequently asked questions
How do I calculate a loan EMI?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 1200) and n is the number of months. A ₹5 lakh loan at 10% for 3 years has an EMI of ₹16,134.
How much loan can I get for a given EMI?
Loan amount = EMI × (1 − (1 + r)^−n) ÷ r. At 10% for 3 years, a ₹15,000 EMI supports a loan of about ₹4.65 lakh. Use the "loan amount" mode above.
How much will I pay in total on my loan?
Total paid = EMI × number of months. The calculator shows it along with total interest and the amortization schedule.
Do extra payments reduce my loan?
Yes. Every extra rupee goes to principal, which lowers future interest and shortens the tenure. The calculator shows the interest you save.
What is the loan-to-value ratio?
Loan-to-value (LTV) is the loan amount divided by the value of the asset, as a percentage. Lenders cap it – for example at 75–90% for home loans in India.
Can I use this loan calculator for a bike or education loan?
Yes. Any loan repaid in equal monthly instalments on a reducing balance – bike, two-wheeler, education, gold, tractor or loan against property – uses the same formula.
What is loan foreclosure?
Foreclosure means repaying the whole outstanding loan before the tenure ends. Floating-rate loans to individuals carry no foreclosure charge; fixed-rate loans may.
Can I use the loan calculator in months?
Yes. Enter the tenure in years with decimals – 6 months is 0.5 and 18 months is 1.5. The calculator converts it to monthly instalments.
Last updated 2026-09-18