Loan Interest Calculator

Calculate and compare loan interest costs across banks and tenures. View total repayment, monthly interest vs principal breakdown, and find the best option.

50.00 Lakhs
₹
%
years

Monthly EMI
₹43,391
43K
₹50,00,000
50.00 Lakhs • Loan Amount
₹54,13,923
54.14 Lakhs • Interest
You Pay 48%
52% Lender Earns
Total Amount
₹1,04,13,923
1.04 Crore
You Pay
₹2.08
for every ₹1 borrowed
Annual Payment
₹5,20,694
5.21 Lakhs

Loan Amortization Overview

Cumulative principal and interest payments over time

Yearly view – Payment breakdown

Principal
Interest

Amortization Schedule

See how your loan balance reduces over time with each payment

YearPrincipalInterestBalance
1₹99,510₹421,182₹4,900,490
2₹108,306₹412,386₹4,792,184
3₹117,879₹402,813₹4,674,305
4₹128,298₹392,394₹4,546,007
5₹139,638₹381,054₹4,406,369
6₹151,981₹368,711₹4,254,388
7₹165,414₹355,278₹4,088,974
8₹180,038₹340,654₹3,908,936
9₹195,950₹324,742₹3,712,986
10₹213,272₹307,420₹3,499,714
11₹232,121₹288,571₹3,267,593
12₹252,638₹268,054₹3,014,955
13₹274,969₹245,723₹2,739,986
14₹299,275₹221,417₹2,440,711
15₹325,729₹194,963₹2,114,982
16₹354,519₹166,173₹1,760,463
17₹385,855₹134,837₹1,374,608
18₹419,960₹100,732₹954,648
19₹457,082₹63,610₹497,566
20₹497,566₹23,209₹0

What is Loan Interest?

The cost of borrowing and how it changes over time

Loan interest is the price you pay to borrow money from a bank or lender. Every month, your EMI includes an interest portion and a principal portion. In the early years of a loan, a large share of your EMI goes towards interest. As the principal reduces, the interest portion gradually falls.

Understanding how much interest you will pay over the full tenure is crucial. It helps you decide whether the loan is worth it, whether you should choose a shorter tenure, or whether prepaying makes sense.

How This Loan Interest Calculator Works

Inputs, outputs, and prepayment analysis explained

This Loan Interest Calculator uses your:

  • Loan amount (principal)
  • Annual interest rate
  • Loan tenure (in months or years)
  • Prepayment details (if any)

Using the standard EMI formula, it calculates:

  • EMI (monthly payment)
  • Total interest payable over the full tenure
  • Total amount payable (principal + interest)
  • Effect of prepayments on total interest and tenure

You can see how small changes in interest rate or tenure can significantly change your total interest outgo.

Loan Interest Formula

EMI, total interest, and total payable formulas

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1]

P = Principal loan amount

R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)

N = Tenure in months

Approximate total interest (before lender-specific rounding/charges) is:

Total Interest ≈ (EMI × N) − P
Total Amount Payable ≈ EMI × N

How to Reduce Total Interest on Your Loan

Shorter tenure, lower rates, and prepayment strategies

1. Choose a shorter tenure

A shorter tenure increases EMI but sharply reduces total interest. Even reducing tenure by 2–3 years can save a lot of money.

2. Negotiate a lower interest rate

Even a 0.5% rate reduction can materially reduce lifetime interest on long tenures; exact savings depend on principal, tenure, and repayment behavior.

3. Make periodic prepayments

Prepaying part of your principal early in the loan dramatically cuts future interest. Even one or two lump-sum prepayments can bring down your total cost.

4. Avoid unnecessary top-up loans

Top-up loans increase your total borrowing and interest. Only take a top-up if you truly need it and understand the extra cost.

Frequently Asked Questions

Common questions about loan interest calculations and payment schedules

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Last updated Feb 16, 2026