Loan Calculator - Free Online Calculator

🧾 Loan Calculator — How Much Will Your Loan Really Cost?


        
        
        
          
      
      
        
            
                                    
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                        About this calculator
                    
                            
        
        
            
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                                Calculator Information
The Equipment Finance Calculator calculates the type of repayment required, at the frequency requested, in respect of the loan parameters entered, namely amount, term and interest rate. The Product selected determines the default interest rate for personal loan product. The Equipment Finance Calculator also calculates the time saved to pay off the loan and the amount of interest saved based on an additional input from the customer. This is if repayments are increased by the entered amount of extra contribution per repayment period. This feature is only enabled for the products that support an extra repayment. The calculations are done at the repayment frequency entered, in respect of the original loan parameters entered, namely amount, annual interest rate and term in years.
Calculator Assumptions
Length of Month
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days interest dependent on the number of days in the particular month.
Number of Weeks or Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
Rounding of Amount of Each Repayment
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after the increase in repayment amount.
Rounding of Time Saved
The time saved is presented as a number of years and months, fortnights or weeks, based on the repayment frequency selected. It assumes the potential partial last repayment when calculating the savings.
Amount of Interest Saved
This amount can only be approximated from the amount of time saved and based on the original loan details.
Calculator Disclaimer
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.
            
        
    

    
        
            
                
                    Feel free to use our Equipment Finance Calculator
                
            
        
        
            
                
                    
                        

                            Loan AmountPlease enter your loan amount here.
                            
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                            No. of PaymentsPlease enter the number of years in which you plan to repay the loan.
                            
                                
                                    
                                                                                                              
                                                                        

                                

                                                            

                            
                            
                            
                            
                            
                        
                        
                                                            
                                    Payment ModePlease choose payment mode of the loan.
                                    
                                
                                                       
                        
                    
                    
                         
                            Interest RateThe interest rate will default to the product you selected. You can also change the rate up or down to understand the effect on your repayments and total interest payable.
                            
                                
                                
                            
                            
                        
                                                    

                                
                                    

                                    
                                
                                
                            
                                            
                    
                        
                            

                                
                                    
                                        Down Payment If applicable, enter the down payment, which will be deducted from loan amount
                                        
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                                    Extra PaymentIf applicable, enter the extra payment, which will be deducted from loan amount
                                    
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                                        Repayment Chart
                                                                    
                                
                                
                                                                            
                                        Loan Amortization Table
                                                                    
                                
                                
                                                                            
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                                                                            **Note: For exceeding 120 no. of payments, a group of 12 payments will be combined into a single payment number for better chart visibility.
                                
                                
                                                                            
                                                                                                   
                                
                                    
                                        
                                            
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                                {frequency} Payment

                        
                        
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                                Total interest payable
                            
                            
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                                    Time Saved From Extra Payments
                                
                                
                                    
                                
                            
                                                                           
                            
                                Interest Saved From Extra Payments
                            
                            
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        Calculator Disclaimer
        
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.

A Loan Calculator is one of the most useful financial tools you can use when planning a loan — whether it’s a home loan, personal loan, auto loan, or education loan. It helps you estimate monthly payments (EMI), total interest paid, and the total repayment amount so you can compare lenders, decide loan tenors, and plan your budget.

Below is a detailed, user-friendly guide you can paste into a blog or use on a product page. It includes the formula, worked examples, tips to save interest, and Amazon affiliate product suggestions to help readers manage their finances.

🛒 Amazon Products to Help Manage Loan & Finances

Financial Calculator (Scientific/Financial functions) — handy for professionals and students doing finance calculations.
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Personal Finance Planner / Budget Notebook — track EMIs, payments, prepayments, and savings goals.
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Spreadsheet & Excel Guide Book (for financial modeling) — helps you build amortization schedules and scenario models.
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Portable Scanner or Document Organizer — keep loan documents, bank statements, and receipts organized.
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Calculator Watch / Pocket Calculator — quick on-the-go calculations without opening apps.
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🔢 What a Loan Calculator Does

A loan calculator typically requires three inputs:

Principal (P) — the loan amount you borrow.
Interest rate — usually annual nominal rate (converted to monthly for calculations).
Tenure (n) — loan duration, usually in months or years.

From these it computes:

EMI (Equated Monthly Installment) — monthly payment that includes principal + interest.
Total payment — EMI × number of months.
Total interest paid — total payment − principal.
Optionally: amortization schedule (breakdown of principal vs interest each month).

🧮 The EMI Formula (step-by-step)

🔍 Worked Example (digit-by-digit accuracy)

So for a ₹1,000,000 loan at 8% for 20 years, you repay roughly ₹2.01 million total — about ₹1.01 million of that is interest.

Tip: even small reductions in interest rate or shorter tenures dramatically reduce total interest paid.

📉 Amortization — Principal vs Interest

In the early EMIs a large share goes toward interest; over time the interest portion falls and the principal portion rises. A loan calculator that shows an amortization schedule helps you:

See how principal balance declines month-by-month.
Find the exact interest paid in any year.
Plan lump-sum prepayments to maximize interest savings.

💡 How to Save on Interest (practical strategies)

Increase EMI or shorten tenure — paying for fewer months reduces total interest.
Make occasional lump-sum prepayments — reduces principal and future interest; ask lender about prepayment rules/penalties.
Refinance when rates drop — switch to a lower-interest loan if fees allow.
Avoid extending tenure unnecessarily — longer tenures reduce EMI but increase total interest.
Keep a good credit score — get access to lower interest rates.

🧾 Types of Loans & What Changes in Calculation

Fixed-rate loans: same nominal rate for the whole tenor → EMI formula above applies directly.
Floating-rate loans: interest rate can change — calculators can project scenarios (best/worst/certain expected rates).
Balloon/step-up loans: not constant EMI; require specialized calculators (balloon payment schedule or graduated payments).
Bullet loans: interest periodically but principal repaid at end — calculator should show lump-sum principal repayment.

✅ What a Good Loan Calculator on Your Site Should Offer

Inputs: Principal, annual rate, tenure (years/months), start date.
Advanced options: processing fees, prepayment plans, annual increments, tax benefits (for home loans).
Output: EMI, total payment, total interest, amortization table (monthly), printable summary, CSV export.
UX: mobile-friendly, sensible defaults, clear currency formatting, explanatory tooltips.

📊 Example Use Cases

Homebuyer comparing bank offers.
Car buyer choosing between 3-year and 5-year loans.
Small business evaluating a short-term working capital loan.
Student estimating education loan repayments and monthly budgeting.

❓ Frequently Asked Questions (FAQs)

Q: Can I prepay part of a loan?
A: Most lenders allow partial prepayments but check for prepayment fees, lock-in period, and whether the EMI or tenure will be adjusted.

Q: Should I reduce EMI or tenure on prepayment?
A: Reducing tenure saves more interest overall. Reducing EMI improves monthly cash flow but may cost more in total interest.

Q: Does the EMI formula change if interest rate is annual vs monthly?
A: No — always convert the annual nominal rate into a monthly rate by dividing by 12 before using the EMI formula.

Q: Are processing fees included in EMI calculation?
A: Processing fees are usually a one-time charge. You can add them to principal or treat separately when calculating true loan cost.

🧾 Quick Checklist Before You Apply

Compare APR (effective annual rate including fees), not just nominal rate.
Check prepayment rules and foreclosure charges.
Verify processing fees, insurance, and other charges.
Keep copies of sanction letters, repayment schedules, and statements.

Final Thoughts

A Loan Calculator is essential for planning loans sensibly. It gives a realistic view of monthly payments and total interest and helps make informed choices about tenures, lenders, and prepayment strategies. Embed a user-friendly calculator on your site with an amortization table and prepayment planner — your readers (and their wallets) will thank you.