What will this loan really cost each month?
Enter the amount, interest rate and term. See your monthly instalment, the total interest, a year-by-year repayment schedule, and how much paying a little extra each month saves.
What you get
- Monthly EMI, total interest and total cost
- Year-by-year or month-by-month schedule
- See the saving from extra payments
Buying equipment for the business? Check the payback with the break-even calculator.
Uses the standard reducing-balance method banks use for EMIs. Your lender’s figure can differ slightly with fees, insurance or a different day count.
Monthly instalment (EMI)
Rs 23,790
- Principal
- Rs 1,000,000
- Total interest
- Rs 427,396
- Total you pay
- Rs 1,427,396
Repayment schedule
| Year | Paid | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | Rs 285,479 | Rs 140,287 | Rs 145,193 | Rs 854,807 |
| 2 | Rs 285,479 | Rs 116,946 | Rs 168,533 | Rs 686,274 |
| 3 | Rs 285,479 | Rs 89,854 | Rs 195,625 | Rs 490,649 |
| 4 | Rs 285,479 | Rs 58,406 | Rs 227,073 | Rs 263,576 |
| 5 | Rs 285,479 | Rs 21,903 | Rs 263,576 | Rs 0 |
Buying equipment or a vehicle for the business? Check the payback with the break-even calculator. Nothing you type is stored.
The rate matters, but the term costs you more.
A longer term lowers the instalment but adds years of interest. On a 5-year loan at 15%, interest adds about 43% to what you borrowed; stretch it to 10 years and it is about 94%. Pay the most you comfortably can, as early as you can.
- How is EMI calculated?
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months. Each instalment is the same, but early ones are mostly interest and later ones mostly principal.
- Why is most of my early payment interest?
- Interest is charged on the balance still owed. At the start the balance is highest, so interest takes the biggest share of each instalment. As the balance falls, more of each payment goes to the principal.
- Does paying extra each month help?
- Yes. Every extra payment goes straight to the principal, so less interest is charged from then on and the loan ends sooner. Check first that your lender allows prepayment without a penalty.
- Is this the same as a flat-rate loan?
- No. This calculator uses the reducing-balance method most banks use. Some lenders quote a flat rate, charged on the original amount for the whole term, which costs much more than the same reducing rate. Ask which one you are being quoted.
- Pricing what the loan pays for?
- The profit margin calculator shows whether your prices cover the instalment and still leave a profit.
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