Total Interest Payable
When you take a loan, you repay not just the amount you borrowed (Principal) but also an additional cost for using that money (Interest). Often, borrowers focus only on the monthly EMI and overlook the total interest burden. Our Loan Interest Calculator is designed to highlight exactly how much "extra" you are paying to the bank. By adjusting the interest rate and tenure, you can see how even a small reduction in rate or tenure can save you thousands or even lakhs in the long run.
Instantly see the total interest component which is often hidden in small monthly EMIs.
Uses the standard reducing balance formula used by major Indian banks.
Adjust the slider to see how increasing your EMI slightly drastically cuts total interest.
Works perfectly on your mobile phone, tablet, or desktop computer.
Suitable for Personal Loans, Car Loans, Education Loans, and Home Loans.
Interest is the cost of time. The longer you take to repay the loan (Tenure), the more interest accrues. Even with a low interest rate, a 20 or 30-year loan will result in total interest payments often exceeding the principal amount.
In a Flat Rate, interest is calculated on the full principal for the entire tenure. In a Reducing Balance method (used by this calculator and most banks), interest is calculated only on the remaining outstanding principal. Flat rates are misleading and usually more expensive.
You can reduce interest by: 1. Choosing the shortest tenure you can afford. 2. Making prepayments whenever you have surplus funds. 3. Negotiating a lower interest rate with your lender based on your credit score.
This calculator is designed for term loans (Personal, Home, Auto). Credit cards work on a revolving credit system with different interest calculations. While you can get an estimate, credit card interest is usually much more complex.
