Loan Calculator
| Amount | % of Total | |
|---|---|---|
| Principal | ₹0 | 0% |
| Interest | ₹0 | 0% |
| Total Payment | ₹0 | 100% |
| Loan Amount | ₹0 |
| Extra Monthly Payment | ₹0 |
| No. of Payments | 0 |
| Total Interest Payable | ₹0 |
| Total Amount Payable | ₹0 |
| Interest Saved | ₹0 |
| Time Saved | 0 months |
| Year | Principal | Interest | Total Payment | Balance |
|---|
What Is a Loan Calculator?
A Loan Calculator works out the fixed monthly payment for any installment loan — personal, business, or otherwise — based on the amount you borrow, the annual interest rate, and how long you have to repay it. It also builds a full repayment schedule so you can see exactly how each payment splits between interest and principal.
How to Use This Loan Calculator
- Enter the Loan Amount — the total sum you are borrowing.
- Enter the Interest Rate — the annual rate charged by the lender (for example, 10.5).
- Enter the Loan Term — in years or months (maximum 35 years).
- Enter an Extra Monthly Payment (optional) — any additional amount toward the principal each month.
- Click Calculate to see your monthly payment, the interest/principal split, and the complete repayment schedule.
The Formula Behind It
This calculator uses the standard reducing-balance loan payment formula used by banks and lenders worldwide:
- P = Loan amount (principal)
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly payments (loan term in years × 12)
Frequently Asked Questions
What information do I need to use this loan calculator?
You just need the loan amount, the annual interest rate, and the loan term. An optional extra monthly payment can also be added to see how much time and interest you would save.
Does this calculator work for any type of loan?
Yes. The math behind a fixed-rate personal loan, business loan, or any other installment loan is the same reducing-balance formula, so this calculator works for any loan type as long as the rate and term are fixed.
How does an extra payment reduce my total interest?
Any extra amount paid each month reduces your outstanding principal immediately, so less interest accrues in every following month, cutting your total interest cost and loan term.
Is this loan calculator free to use?
Yes, this calculator is completely free, requires no sign-up, and can be used as many times as you need.