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Calculates

Loan Calculator

Estimate monthly payments, total interest and the total cost of your loan.

Calculated & verified for mathematical accuracy·Reviewed by the Calculates Editorial Team

Loan details

0 – 10,00,00,000
0 – 50
1 – 40

60 monthly payments over 5 yr

Payment frequency

Monthly payment

₹10,747

60 payments over 5 yr.

Loan amount
₹5,00,000
Total interest
₹1,44,817
Total repayment
₹6,44,817
Cost of borrowing
28.96%
  • Principal₹5,00,000
  • Interest₹1,44,817

For every ₹100 borrowed you repay ₹128.96 over the full term.

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About this calculator

This calculator works out what a loan will actually cost you. Enter the amount, rate and term to see the payment due each period, the total interest charged and the full repayment amount. Unlike a monthly-only calculator, it also supports quarterly, half-yearly and annual repayment schedules, which are common for business and agricultural loans.

How to use this calculator

  1. Enter the amount you need to borrow

    Use the net loan amount. If you are putting down a deposit, subtract it from the purchase price first.

  2. Enter the annual interest rate

    Use the nominal annual rate quoted by the lender. If you have been given a flat rate rather than a reducing-balance rate, ask the lender for the equivalent reducing-balance figure — they are not comparable.

  3. Choose the term and payment frequency

    Most retail loans repay monthly. Business, equipment and agricultural loans often repay quarterly or annually, which changes both the payment size and the total interest.

  4. Compare the total cost

    Look at total repayment and cost of borrowing rather than the payment alone. A smaller payment over a longer term almost always costs more overall.

Formula

A = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
  • A is the payment due each period.
  • P is the principal — the amount borrowed.
  • r is the periodic interest rate: the annual rate ÷ number of payments per year ÷ 100. For quarterly payments at 12% a year, r = 0.12 / 4 = 0.03.
  • n is the total number of payments: years × payments per year.
  • This is the same reducing-balance formula used for EMIs; only the period length changes with the payment frequency.

Worked example

Inputs

  • Loan amount (P): ₹5,00,000
  • Interest rate: 10.5% per year
  • Term: 5 years, repaid monthly (n = 60)

Calculation

r = 10.5 / 12 / 100 = 0.00875 (1 + r)ⁿ = (1.00875)⁶⁰ = 1.68609 A = 500000 × 0.00875 × 1.68609 ──────────────────────────── 1.68609 − 1 = 7376.64 / 0.68609 = 10746.95

The monthly payment is ₹10,746.95. Across 60 payments you repay ₹6,44,817 in total — ₹1,44,817 of it interest, or about 29% on top of what you borrowed.

What the result means

  • The periodic payment is the amount due each cycle. Confirm it fits your cash flow at the frequency you selected, not just monthly.
  • Total interest is what the loan costs you above the amount borrowed. Use this figure — not the headline rate — to compare offers from different lenders.
  • Cost of borrowing expresses total interest as a percentage of the principal. A cost of 29% means you repay ₹129 for every ₹100 borrowed.
  • Paying less often means each payment is larger and the outstanding balance sits unpaid for longer, so annual repayment always costs more total interest than monthly repayment at the same nominal rate.

Related calculations

  • Switch the frequency between monthly and quarterly with all else unchanged to see how much the payment schedule alone affects total interest.
  • Shorten the term by a year or two to see how quickly total interest falls.
  • Raise the rate by two percentage points to check whether the loan is still affordable if rates rise.

Frequently asked questions

What is the difference between this and an EMI calculator?

The underlying reducing-balance formula is identical. An EMI calculator assumes fixed monthly instalments and shows a month-by-month amortization schedule. This loan calculator additionally supports quarterly, half-yearly and annual repayment, which is useful for business, equipment and agricultural loans that are not repaid monthly.

Does the payment frequency change how much interest I pay?

Yes. At the same nominal annual rate, paying more frequently reduces total interest because the outstanding balance is reduced sooner and less interest accrues between payments. Monthly repayment therefore costs less overall than annual repayment on an otherwise identical loan.

Is this a flat rate or a reducing-balance rate?

Reducing balance. Interest is charged only on the outstanding principal, which falls with every payment. Some lenders quote a flat rate, where interest is charged on the original amount for the whole term — a flat rate always costs substantially more than the same number quoted as reducing balance.

Are processing fees and other charges included?

No. This calculates principal and interest only. Processing fees, documentation charges, insurance, prepayment penalties and GST on fees are additional. Ask your lender for the annual percentage rate (APR) or total amount payable, which includes these charges.

How much can I realistically borrow?

Most lenders limit total loan repayments to roughly 40–50% of your net monthly income, and also apply a loan-to-value cap on secured loans. Adjust the loan amount here until the payment sits comfortably within that share of your income.

Should I choose a longer term to lower the payment?

A longer term lowers each payment but increases total interest, sometimes dramatically. Choose the shortest term whose payment you can service reliably, and keep a cash buffer rather than stretching the term purely to reduce the instalment.

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