Loan Interest Calculator
Interest is the price of borrowing. Enter the loan amount, rate and tenure to see the total interest you will pay, and what percentage of everything you repay it represents.
Results
Total interest
₹5,20,109
- Monthly EMI
- ₹12,667.58
- Total payment
- ₹15,20,109
- Principal + interest
- Number of payments
- 120
Your monthly EMI is ₹12,667.58 for 120 payments, with ₹5,20,109 in total interest.
Principal vs interest
- Principal₹10,00,000 (65.8%)
- Total interest₹5,20,109 (34.2%)
Yearly payment schedule (10 rows)
| Period | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| Year 1 | ₹64,634 | ₹87,377 | ₹1,52,011 | ₹9,35,366 |
| Year 2 | ₹70,697 | ₹81,314 | ₹1,52,011 | ₹8,64,669 |
| Year 3 | ₹77,329 | ₹74,682 | ₹1,52,011 | ₹7,87,340 |
| Year 4 | ₹84,583 | ₹67,428 | ₹1,52,011 | ₹7,02,757 |
| Year 5 | ₹92,517 | ₹59,494 | ₹1,52,011 | ₹6,10,240 |
| Year 6 | ₹1,01,196 | ₹50,815 | ₹1,52,011 | ₹5,09,044 |
| Year 7 | ₹1,10,689 | ₹41,322 | ₹1,52,011 | ₹3,98,355 |
| Year 8 | ₹1,21,072 | ₹30,939 | ₹1,52,011 | ₹2,77,282 |
| Year 9 | ₹1,32,430 | ₹19,581 | ₹1,52,011 | ₹1,44,853 |
| Year 10 | ₹1,44,853 | ₹7,158 | ₹1,52,011 | ₹0 |
Show the calculation steps
- Monthly interest rate r = 9% ÷ 12 = 0.75% (0.0075 as a decimal).
- Number of monthly payments n = 10 years = 120 payments.
- (1 + r)^n = 2.4514, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹12,667.58.
- Total payment = EMI × n = ₹12,667.58 × 120 = ₹15,20,109.
- Total interest = total payment − principal = ₹15,20,109 − ₹10,00,000 = ₹5,20,109.
- Lenders may round the EMI to the nearest whole currency unit, so your bank's figure can differ slightly.
How loan interest is charged
On a standard reducing-balance loan, interest each month is charged on the balance still owed. As you repay principal, the interest part of each EMI shrinks and the principal part grows.
Because of this, the total interest depends heavily on the tenure: doubling the tenure often much more than doubles the interest.
Ways to cut total interest
Borrow less, choose a shorter tenure, prepay when you can, and shop around for a lower rate.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Total payment = EMI × n
Total interest = Total payment − P
Where:
- P
- = Principal, the loan amount
- r
- = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- = Number of monthly payments
Example calculation
₹10,00,000 at 9% for 10 years
Inputs
- Loan Amount
- ₹10,00,000
- Interest Rate
- 9 %
- Loan Tenure
- 10 years
Result
- Monthly EMI
- ₹12,667.58
- Total interest
- ₹5,20,109
- Total payment
- ₹15,20,109
- Number of payments
- 120
Step-by-step
- Monthly interest rate r = 9% ÷ 12 = 0.75% (0.0075 as a decimal).
- Number of monthly payments n = 10 years = 120 payments.
- (1 + r)^n = 2.4514, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹12,667.58.
- Total payment = EMI × n = ₹12,667.58 × 120 = ₹15,20,109.
- Total interest = total payment − principal = ₹15,20,109 − ₹10,00,000 = ₹5,20,109.
Important notes
- Fees and charges are extra. The APR calculator shows the effect of fees on your effective rate.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How do I calculate the total interest on a loan?
Work out the EMI, multiply by the number of payments to get the total repaid and subtract the loan amount. This calculator does all three steps and shows them.
Why is total interest so high on long loans?
Interest is charged on the outstanding balance for every month it stays outstanding, so long tenures accumulate far more interest.
Is simple or compound interest used?
Standard loans use interest on the reducing balance. For a simple-interest loan use the simple interest calculator.
Related calculators
- EMI CalculatorCalculate the equated monthly instalment (EMI) on a home, car or personal loan, plus the total interest and a year-by-year repayment schedule.
- Home Loan EMI CalculatorCalculate your home loan EMI, total interest and repayment over 5 to 30 years, with a yearly principal and interest schedule.
- Personal Loan EMI CalculatorFind the monthly EMI and total interest on a personal loan for tenures from a few months to several years.
- Car Loan EMI CalculatorCalculate the EMI and total interest on a car loan, then compare tenures to find a payment that fits your budget.
Explore more in Loan & EMI Calculators.