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Loan Calculator

Analyze complete loan repayment scenarios: calculate monthly payments, evaluate maximum borrowing capacity, or compute exact payoff duration with multi-mode repayment analysis.

Looking for a month-by-month repayment schedule? Use our dedicated EMI Calculator for complete loan balance amortization tables.
Open EMI Calculator →
Calculation Mode

Calculate your monthly installment, total interest, and total repayment for a given loan amount.

₹
Total principal amount you wish to borrow.
%
Annual lending interest rate (e.g., 8.5% or 9.5%).
Yrs
Repayment duration in years (e.g., 5 or 20).
Instant Computation
Calculated Result
₹21,001.86

Monthly Loan Payment

Calculation: Loan Amount: ₹10,00,000.00, Annual Rate: 9.5%, Tenure: 5 Years (60 Months). Monthly Rate (r) = 9.5% / 12 = 0.007917. Formula: PMT = P × [r(1+r)^n] / [(1+r)^n - 1]. Monthly Payment = ₹21,001.86. Total Repayment = ₹21,001.86 × 60 = ₹12,60,111.68. Total Interest = ₹12,60,111.68 − ₹10,00,000.00 = ₹2,60,111.68 (26.01% of principal).
Informational Notice: This calculation provides mathematical estimates based on constant interest rates. Actual lender terms, taxes, and fees may vary.
Breakdown & Metrics
Principal Amount₹10,00,000.00
Total Interest₹2,60,111.68
Total Repayment₹12,60,111.68
Interest-to-Loan Ratio26.01%
Loan Tenure5 Years (60 Months)

How Loan Calculations Work

Pure mathematical formulas for loan installments, borrowing power, and payoff timelines based on the reducing balance method.

1. Monthly Loan Payment Formula

PMT = P × r(1 + r)n(1 + r)n − 1

Calculates the fixed monthly installment required to fully amortize loan principal P at monthly interest rate r over n total monthly periods.

When to use: Use when you know your loan amount, interest rate, and target tenure, and need to find the monthly repayment.

Example: ₹10,00,000 at 9.5% for 5 years: r = 0.095 / 12, n = 60. PMT = ₹21,001.86/month.

2. Maximum Borrowing Capacity Formula

P = PMT × (1 + r)n − 1r(1 + r)n

Calculates the maximum loan principal you can borrow given a target monthly budget PMT, periodic monthly interest rate r, and tenure n.

When to use: Use to determine how much loan you can afford based on your monthly disposable income or salary.

Example: ₹25,000 monthly budget at 9% for 15 years yields a maximum loan of ₹24,64,835.22.

3. Loan Payoff Duration Formula

n = −\ln(1 − P × r / PMT)\ln(1 + r)

Determines the total number of monthly payments required to extinguish loan principal P when paying fixed installment PMT at monthly interest rate r.

When to use: Use when you want to accelerate debt payoff and find out how fast a fixed monthly payment will clear your loan.

Example: ₹5,00,000 at 10% paying ₹15,000/month takes approximately 39.21 months (~3.27 years).

4. Total Financing Interest Formula

Total Interest = (PMT × n) − P

Calculates the net financing charge paid to the lender across the entire loan lifespan.

When to use: Use to evaluate the total financing cost and compare different loan tenure options.

Example: Total Repayment of ₹12,60,111.68 − Principal ₹10,00,000.00 = Total Interest of ₹2,60,111.68.

Practical Calculation Examples

Real-world scenarios illustrating step-by-step numbers, inputs, and verified outputs.

Example 1: ₹10,00,000 Loan at 9.5% for 5 Years

Standard personal or vehicle loan payment calculation.

Result₹21,001.86

Example 2: ₹50,00,000 Home Loan at 8.5% for 20 Years

Long-term home loan repayment with 240 monthly installments.

Result₹43,391.16

Example 3: ₹25,000 Monthly Budget at 9% for 15 Years

Calculating maximum borrowing capacity from a monthly budget.

Result₹24,64,835.22

Example 4: ₹5,00,000 Loan at 10% Paying ₹15,000/Month

Calculating payoff duration with accelerated monthly payments.

Result39.21 Months (~3.27 Years)

Frequently Asked Questions

Clear answers to common questions about loan installments, maximum borrowing capacity, reducing balance interest, and debt payoff duration.

How do I calculate a loan payment using a calculator?

Enter your target borrowing principal, the annual lending interest rate, and desired tenure in years in the 'Loan Payment' mode. The calculator applies the standard reducing-balance amortization formula to determine your fixed monthly payment, total interest cost, and overall repayment amount.

How much can I borrow based on my monthly repayment budget?

Switch to the 'How Much Can I Borrow?' mode, enter your comfortable monthly repayment budget, expected interest rate, and target tenure. The calculator computes your estimated maximum borrowing capacity based on installment mathematics (formal loan approval also depends on lender credit policies, income criteria, and debt ratios).

How can I calculate loan tenure?

Switch to the 'Loan Tenure' mode, enter your loan amount, annual interest rate, and fixed monthly payment amount. The calculator computes the exact number of months and years required to fully amortize the principal.

How can extra payments reduce loan tenure or interest?

Every rupee paid above the monthly interest charge directly reduces the outstanding principal balance. Because subsequent monthly interest is computed on a smaller balance, a greater portion of each subsequent payment pays down principal, significantly shortening your payoff timeline and reducing total interest expense.

How is a Loan Calculator different from an EMI Calculator?

While both tools calculate monthly installments, our EMI Calculator focuses strictly on standard fixed monthly installments and repayment breakdowns. This Loan Calculator provides broader multi-mode financial analysis: calculating monthly payments, estimating maximum borrowing power from a target budget, and computing payoff duration when making fixed payments.

Does this calculator account for processing fees and taxes?

This tool performs mathematical principal and interest estimations. Bank processing fees, documentation charges, and statutory taxes on credit facilities are set by individual lending institutions and are not included in the basic repayment math.

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