Loan EMI & Bank Comparison Calculator
Calculate EMI, total interest, and see exact year-wise loan paid & balance left.
Loan EMI Calculator
Loan Comparison (Two Banks)
Bank 1
Bank 2
Note: Lowest interest rate banks save you lakhs over loan tenure.
🧠 What Is a Loan EMI?
An EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay a loan. It consists of two parts:
Principal – the actual loan amount you borrowed
Interest – the cost charged by the bank or lender
Using a loan EMI calculator helps you understand your monthly obligation before applying for a loan, so you can plan your finances wisely.
🏠 Types of Loans Covered by This Calculator
This one-stop loan calculator helps you calculate EMI for:
Home Loan EMI – for buying or constructing a house
Personal Loan EMI – for medical, travel, or emergency expenses
Car Loan EMI – for new or used vehicles
Education Loan EMI – for higher studies in India or abroad
Custom Loan EMI – any other loan with fixed interest and tenure
You can also compare two different banks to see which one offers a better deal.
📊 How EMI Is Calculated (Simple Explanation)
Banks use a standard formula to calculate EMI:
EMI = P × R × (1+R)ⁿ / ((1+R)ⁿ − 1)
Where:
P = Loan Amount
R = Monthly Interest Rate
n = Loan Tenure in Months
This calculator uses the same formula followed by banks, ensuring accurate results.
📅 Understanding the Year-Wise Loan Breakdown
The year-wise table shown above helps you clearly see:
How much principal you repay every year
How much interest you pay every year
The total amount paid till that year
The remaining loan balance
💡 Important Insight:
In the initial years of a loan, you pay more interest and less principal.
As time passes, the principal repayment increases and interest reduces.
🏦 Why Compare Loans from Different Banks?
Even a small difference in interest rate (0.5% – 1%) can save or cost you lakhs of rupees over the full loan tenure.
Example:
Bank A interest: 8.5%
Bank B interest: 9.2%
👉 The EMI difference may look small monthly, but the total interest difference over 20 years can be huge.
That’s why comparing loans before choosing a bank is extremely important.
Smart Loan Planning Tips (Very Useful for Users)
Choose the Right Tenure
Longer tenure → Lower EMI, higher total interest
Shorter tenure → Higher EMI, lower total interest
Choose a tenure that balances affordability + savings.
✅ Pay Attention to Interest Rate Type
Fixed Rate: EMI stays the same
Floating Rate: EMI may increase or decrease based on market conditions
Home loans usually have floating interest rates.
✅ Prepayment Can Save You Money
If your bank allows partial prepayment, paying extra whenever possible can:
Reduce total interest
Reduce loan tenure
Save lakhs over time
✅ Keep EMI Below 30–40% of Income
Financial experts suggest:
Your total EMI should not exceed 30–40% of your monthly income
This ensures financial stability and stress-free repayment.
❓ Frequently Asked Questions (FAQ)
Is this EMI calculator accurate?
Yes. It uses standard banking formulas and provides near-exact results used by banks and NBFCs.
Can I use this calculator for any bank?
Yes. This calculator works for all Indian banks and financial institutions.
Does EMI change every month?
For fixed-rate loans, EMI remains constant.
For floating-rate loans, EMI may change if interest rates change.
Is this calculator free to use?
Yes. This is a 100% free loan EMI and comparison calculator.
