Loan Calculator
Calculate your monthly loan payment, total interest, and full amortization schedule for any loan amount, interest rate, and term.
How to Calculate a Loan Payment
The standard loan payment formula is: M = P × [r(1+r)^n] / [(1+r)^n − 1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (term in years × 12). For example, a ₹5,00,000 loan at 8.5% for 5 years gives a monthly payment of approximately ₹10,230.
What Is an Amortization Schedule?
An amortization schedule is a complete table showing every payment over the life of the loan. Each row shows: the payment number, monthly payment, how much goes toward interest, how much reduces the principal, and the remaining balance. In the early months, most of your payment is interest. As the balance decreases, less interest accrues each month and more of your payment goes toward the principal.
Total Interest — How Much a Loan Really Costs
The total interest paid is the true cost of borrowing. A ₹10,00,000 loan at 10% for 10 years has a monthly payment of ₹13,215 — but the total paid is ₹15,85,800, meaning ₹5,85,800 in interest alone. A shorter term or lower rate dramatically reduces this number. Use this calculator to compare scenarios before committing to a loan.
How Does Interest Rate Affect Payments?
Even a small change in interest rate significantly affects total cost. On a ₹10,00,000 loan over 10 years: at 8% annual rate, total interest = ₹4,56,000. At 10%, total interest = ₹5,86,000. At 12%, total interest = ₹7,20,000. Negotiating even 1-2% lower rate saves lakhs over the loan term. Use the slider above to see the impact instantly.
Loan Term — Shorter vs Longer
A shorter loan term means higher monthly payments but far less total interest. A longer term means lower monthly payments but you pay much more overall. On a ₹10,00,000 loan at 9%: 5-year term = ₹20,758/month, total interest ₹2,45,480. 10-year term = ₹12,668/month, total interest ₹5,20,160. The 10-year term saves ₹8,090/month but costs ₹2,74,680 more in interest.