Loan Calculator — Monthly Loan Payment Calculator (2026)

Loan Calculator – Monthly Payments, Interest & Repayment

Calculate monthly payments, total interest, and repayment costs for personal, business, home, and auto loans — instantly and for free.

Instant calculations
Works for any loan type

Loan Calculator

₹10,000 ₹1 Cr
1% 30%
1 month 30 years

Your Results

Monthly Payment

10,624

Total Interest

1,37,460

Total Repayment

6,37,460

Summary: You will pay ₹10,624 every month for 60 months.

Results are estimates and may vary slightly by lender.

What is a Loan Calculator?

Understand what a loan calculator does and why it matters before you borrow.

A loan calculator is an online tool that instantly estimates your monthly loan payment, total interest payable, and total repayment amount based on the loan amount, interest rate, and loan term you enter. It works for any type of loan — personal, business, home, or auto — because the underlying math is the same in every case.

Instead of manually working through amortization formulas or building a spreadsheet, you can enter your numbers into our Loan Calculator above and get accurate results in under a second. This makes it easy to compare loan offers, test different terms, and plan your monthly budget before you commit to any loan.

The three inputs that drive every loan calculation are the loan amount (principal), the interest rate, and the loan term (tenure). Changing any one of these changes your monthly payment and the total cost of borrowing — the calculator lets you see that impact instantly, so you can choose terms that fit your finances.

Loan Formula

The mathematical formula used to calculate your monthly loan payment.

Monthly Payment Formula

Monthly Payment = [P × R × (1 + R)^N] / [(1 + R)^N – 1]

Where:

P = Principal Loan Amount (₹)

R = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)

N = Total Number of Months (Years × 12)

Related Calculations

Total Interest

Total Interest = (Monthly Payment × N) – P

Multiply the monthly payment by the number of months, then subtract the original loan amount.

Total Repayment

Total Repayment = Monthly Payment × N

The total repayment is simply the monthly payment multiplied by the total number of months.

Types of Loans

The loan formula works the same way across loan types — only the typical rates and terms differ.

Personal Loans

Unsecured loans usable for any purpose. Typically 10–24% interest in India, with tenures from 1–7 years and quick approval. Try our Personal Loan Calculator.

Home Loans

Secured against the property, with lower rates (typically 8–10%) and long tenures up to 30 years. Try our Home Loan EMI Calculator.

Auto Loans

Secured against the vehicle, with moderate rates and tenures usually between 1–7 years. Try our Car Loan EMI Calculator.

Business Loans

Used to fund working capital, equipment, or expansion. Rates and tenures vary widely by lender, collateral, and business profile — the calculator above works for these too.

Loan Repayment Examples

A step-by-step example showing how loan repayment is calculated.

Example: ₹5,00,000 Loan at 10% Interest for 5 Years

Given Information:

  • Loan Amount (P) = ₹5,00,000
  • Annual Interest Rate = 10% per annum
  • Loan Term = 5 years (60 months)

Step 1: Calculate Monthly Interest Rate

R = 10% / 12 / 100 = 0.00833 (0.833% per month)

Step 2: Apply the Monthly Payment Formula

Payment = [5,00,000 × 0.00833 × (1.00833)^60] / [(1.00833)^60 – 1]

Payment ≈ ₹10,624 per month

Step 3: Calculate Total Interest and Repayment

Total Interest

₹1,37,460

(₹10,624 × 60) – ₹5,00,000

Total Repayment

₹6,37,460

₹10,624 × 60

What Changes the Result?

Shorter term (3 years): Monthly payment rises to about ₹16,134, but total interest drops to about ₹80,824.

Longer term (7 years): Monthly payment falls to about ₹8,305, but total interest rises to about ₹1,97,650.

Higher rate (12% instead of 10%): Monthly payment increases to about ₹11,122, raising total interest to about ₹1,67,320.

Summary: For a ₹5 lakh loan at 10% interest over 5 years, you'll pay ₹10,624 every month, with total interest of ₹1,37,460. Use the Loan Calculator above to run the numbers for your own amount and term.

Tips for Borrowers

Practical steps to borrow smarter and pay less over the life of your loan.

Compare lenders

Interest rates and fees vary between lenders for the same loan type. Even a 1–2% difference can change your total cost by a significant amount over the loan term.

Keep EMIs under 40% of income

A common rule of thumb is to keep all your loan EMIs combined below 40% of your monthly take-home salary, so you retain a comfortable buffer for expenses and savings.

Choose the shortest affordable term

A shorter term means a higher monthly payment but significantly less total interest. Only stretch the term if the shorter option genuinely doesn't fit your budget.

Improve your credit score first

A stronger credit score usually unlocks lower interest rates. If you can wait, paying down existing debt before applying can meaningfully reduce your borrowing cost.

Prepay when you can

Even small extra payments toward the principal — a bonus, a tax refund — reduce future interest and can shorten your loan term meaningfully.

Read the fine print

Check for processing fees, prepayment penalties, and whether the rate is fixed or variable before signing — these terms affect your real cost of borrowing.

Frequently Asked Questions