Loan Calculator

Calculate the monthly payment for any fixed-rate loan - personal, auto, business or otherwise. Enter the loan amount, interest rate and term to see your payment and the total interest you'll pay over the life of the loan.

₹5,00,000
₹
10%
%
yrs
Monthly payment
₹10,624
Total interest
₹1,37,411
Total paid
₹6,37,411

How to calculate a loan payment

A fixed-rate loan is repaid in equal monthly instalments. Each payment covers that month's interest first, with the remainder reducing the principal - so early payments are mostly interest and later ones are mostly principal, even though the payment amount itself never changes.

Formula
Payment = P x r x (1+r)^n / ((1+r)^n - 1), where r = monthly rate, n = number of months

Example. A 500,000 loan at 10% annual interest over 5 years has a monthly payment of about 10,624, with total interest of roughly 137,440 over the full term.

Frequently asked questions

Why does a longer term mean more total interest?

A longer term spreads the same principal over more payments, lowering each individual payment - but interest keeps accruing on the outstanding balance for longer, so the total interest paid over the whole loan is higher even though each payment is smaller.

Does this work for any type of loan?

Yes, as long as it's a standard fixed-rate, fixed-term loan repaid in equal instalments - personal loans, auto loans, business loans and similar all use the same underlying math.

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