What is a Loan Calculator?

A Loan Calculator (also called an EMI Calculator or Loan Repayment calculator) is a free online tool that you can use to find the estimated monthly EMI, the total interest cost, and total repayment amount. All you need to do is input the loan amount, interest rate (a common practice is to input the annual interest rate) and tenure. The calculator calculates your monthly loan EMI and total obligation right before your eyes.

To put it in context for you, a Loan Calculator is a great tool for obtaining clarity on your personal loan, home mortgage, auto loan, education loan and/or business financing obligations. Instead of applying confusing formulas manually, you will avoid calculating interest and payments with improved speed and accuracy through online calculators as these programs present the information in a timely, simple, and concise format. All you need to do is input the lending amount, interest rate, and loan tenure, and then you have the clarity to make more informed decisions about borrowing.

How Does the Loan Calculator Work?

The Loan Calculator uses the standard EMI formula to help calculate your repayment schedule.

You enter:

• - Loan amount (Principal)
• - Interest rate (Annual %)
• - Loan tenor (Months/Years)
• - Optional - any processing fees or down payment amount

You receive:

• - Monthly EMI (Equated Monthly Installment)
• - Total interest payable
• - Total repayment (Principal + Interest)
• - Optional amortization table with month-wise breakdown

Formula used:

Where:

• P = Loan amount
• r = Monthly interest rate (Annual Rate ÷ 12 ÷ 100)
• n = Total number of EMIs

Why Use This Loan Calculator?

• You will be able to see your exact EMI before you apply for a loan.
• You will not have to work hard comparing loan offers from different banks.
• You can find out how much interest you are paying before you sign the loan agreement.
• You can plan for prepayment options and factors in additional fees.
• This loan calculator is great for new borrowers and experienced investors looking for clarity before borrowing.

Disclaimer

This Loan Calculator is for informational purposes only. Calculations are estimates based on the data you provide and may not reflect the exact EMI, interest, or total repayment. Always verify with your bank or financial institution before making borrowing decisions.