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.

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