Loan Interest Calculator

This calculator focuses on one number: the interest. Enter the principal, rate and tenure to see the total interest, how it compares with the amount borrowed, and how much of it you pay in each year.

A ₹3,00,000 loan at 13% over 3 years has an EMI of ₹10,108, and costs ₹63,896 in total interest.

Principal amount

₹

Interest rate (per year)

Loan tenure

Monthly EMI

₹10,108

for 3 years

Principal

₹3,00,000

Total interest

₹63,896

Total payment

₹3,63,896

Principal vs interest

Principal: ₹3,00,000 (82.4%)
Total interest: ₹63,896 (17.6%)

Compare tenures

EMI and total interest at different tenures
Tenure	EMI	Total interest	Total payment
1 year	₹26,795	₹21,542	₹3,21,542
2 years	₹14,263	₹42,300	₹3,42,300
3 years	₹10,108	₹63,896	₹3,63,896
4 years	₹8,048	₹86,320	₹3,86,320
5 years	₹6,826	₹1,09,553	₹4,09,553

Amortisation schedule

How each instalment splits between interest and principal.

Monthly EMI

₹10,108

3 years

What it is:: An interest-first view of a loan.
What it calculates:: The total interest paid over the tenure, its ratio to the amount borrowed, and the year-by-year split.

Assumptions

Interest is computed on a reducing balance.
No prepayments are made.
Tax deductions are not applied.

How it works

Total interest is the sum of the interest column in the amortisation schedule, not a flat percentage of the loan.

The interest-to-principal ratio tells you how much extra you pay for every rupee borrowed. Above 50% usually means a long tenure, a high rate, or both.

Formula

Total interest = (EMI x n) - P

EMI: = monthly instalment from the reducing-balance formula
n: = tenure in months
P: = loan amount

Example calculation

A ₹3,00,000 loan at 13% for 3 years

Loan amount: ₹3,00,000
Interest rate: 13% a year
Tenure: 3 years
Monthly EMI: ₹10,108
Total interest: ₹63,896
Total payment: ₹3,63,896

Frequently asked questions

Why does the interest look so high on a long loan?

Because interest accrues every month the balance is outstanding. On a 20 to 30 year home loan the total interest can approach or exceed the amount borrowed, even at a single-digit rate.

Can I claim this interest as a tax deduction?

It depends on the loan type and the tax regime you are in. Home loan and education loan interest have specific provisions; personal and consumer loans generally do not. Check the current rules or ask a tax professional before relying on it.

How do I reduce the total interest?

Shorten the tenure, negotiate a lower rate, or make part-prepayments. Prepaying early in the loan has the biggest effect, because that is when the outstanding balance is highest.