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.
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Calculator and results
A ₹3,00,000 loan at 13% over 3 years has an EMI of ₹10,108, and costs ₹63,896 in total interest.
Monthly EMI
₹10,108
for 3 years
Principal
₹3,00,000
Total interest
₹63,896
Total payment
₹3,63,896
Principal vs interest
- Principal
- 82.4%
- ₹3,00,000
- Total interest
- 17.6%
- ₹63,896
Compare 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 over time.
Saved scenarios stay in this browser only. No sign-up.
Monthly EMI
₹10,108
- 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.
Key Assumptions
- Interest is computed on a reducing balance.
- No prepayments are made.
- Tax deductions are not applied.
How does the Loan Interest Calculator work?
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.
Worked example: ₹10 lakh at 8.5% for 20 years costs about ₹10.83 lakh in interest, more than the amount borrowed, with an EMI of about ₹8,678. Cut the tenure to 10 years and the EMI rises to about ₹12,399, but total interest falls to about ₹4.88 lakh.
Interest on most Indian loans is charged on the reducing balance, so it is front-loaded: in the early years most of each EMI is interest. That is why a prepayment early in the loan saves far more than the same amount paid near the end; see the Loan Prepayment Calculator. For the instalment itself, use the EMI Calculator, and if a lender quotes a flat rate, compare it with the Flat vs Reducing Rate Calculator.
Total interest on a ₹10 lakh loan at 8.5%, by tenure
| Tenure | EMI | Total interest | Total paid |
|---|---|---|---|
| 10 years | ₹12,399 | ₹4,87,799 | ₹14,87,799 |
| 15 years | ₹9,847 | ₹7,72,603 | ₹17,72,603 |
| 20 years | ₹8,678 | ₹10,82,866 | ₹20,82,866 |
| 25 years | ₹8,052 | ₹14,15,879 | ₹24,15,879 |
| 30 years | ₹7,689 | ₹17,68,263 | ₹27,68,263 |
Reducing-balance interest with equal monthly instalments. Processing fees and insurance are not included.
Loan Interest Calculator formula
Total interest = (EMI x n) - P
- EMI
- = monthly instalment from the reducing-balance formula
- n
- = tenure in months
- P
- = loan amount
Loan Interest Calculator: worked example
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
Loan Interest Calculator: frequently asked questions
Why does the interest look so high on a long loan?
Can I claim this interest as a tax deduction?
How do I reduce the total interest?
How much interest will I pay on a ₹10 lakh loan?
Further reading
What a lump-sum prepayment does to an Indian loan, the choice between cutting the tenure and cutting the EMI, and when it is worth doing at all.
Calculate exact EMI on a ₹20 Lakh home loan at 8.5% to 9% interest across 10, 15, 20, 25, and 30-year tenures. View total interest and tax savings.
Learn whether reducing EMI or reducing tenure saves more interest when making a loan prepayment. Detailed calculations and strategy for Indian borrowers.
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Reviewed by Pradipta Ray, MBA (Finance) · Updated