Compare Loan EMI and Total Interest

Start with the amount actually borrowed

Use the principal advanced by the lender, rather than the purchase price when a down payment is separate. Enter an annual percentage rate and a tenure in years. The calculator converts years into a rounded number of monthly payments.

Compare two tenures on the same basis

For a hypothetical ₹1,00,000 loan at 12% per year over one year, the monthly rate is 1%. The standard reducing-balance formula produces an EMI of about ₹8,884.88, total payments of ₹1,06,618.55, and interest of ₹6,618.55 before display rounding. These are assumed inputs, not an available lending offer.

1. Enter 100000, 12, and 1 to reproduce the example.
2. Keep principal and rate fixed, then increase tenure to two years.
3. Compare total interest as well as the smaller monthly instalment.
4. Copy each result before changing the next scenario.

Understand what the formula assumes

For principal P, monthly rate i, and payment count n, EMI is P × i × (1+i)^n / ((1+i)^n − 1). At a zero rate, repayment is simply P / n. This implementation assumes equal monthly payments and a constant rate; it does not build a lender-specific daily-interest or repayment schedule.

A lower EMI does not by itself mean lower borrowing cost. Processing charges, insurance, taxes, prepayments, changing rates and odd first-payment periods can change what a lender collects. Compare the lender’s written repayment schedule and total charges before making a borrowing decision.

Resolve an unexpected payment

Check whether you entered the annual rate, not the monthly rate. Enter 12 for 12%, not 0.12. A fractional-year tenure is rounded to whole months. The headline rounds currency for display, so multiplying the displayed EMI can differ slightly from the unrounded calculation’s total.

For a percentage-only check, use Percentage Calculator. EMI is a planning calculation, not a loan approval or an assessment of affordability.