Payment Calculator
Calculate the monthly payment, total interest and full cost of any loan in India, from car loans to home loans. Compare tenures and rates instantly.
Monthly payment
₹10,258
Total payment
₹6,15,496
Total interest
₹1,15,496
Over 60 months
Uses the standard EMI formula with interest compounded monthly. Your bank may add processing fees or insurance that change the final figure.
Last updated: March 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use this payment calculator whenever a bank or lender quotes you an EMI — before buying a car, taking a personal loan, or applying for a home loan. It is the quickest way to sanity-check the monthly figure a salesperson quotes, because you can type in the amount, rate and tenure yourself and see the interest you are really paying. It also helps when comparing tenures: many borrowers discover that stretching a loan by five extra years doubles the interest for only a small drop in EMI. Parents planning an education loan for a child's degree, small business owners financing equipment, and anyone consolidating a purchase on credit can all use the same formula. Keep your rate realistic — add 0.25–0.5% over the quoted rate to account for future resets if the loan is floating-rate.
How to Use This Calculator
- Step 1: Enter the loan amount you plan to borrow, for example ₹5,00,000 for a new car.
- Step 2: Enter the annual interest rate your bank or NBFC has quoted, such as 8.5% p.a.
- Step 3: Enter the loan tenure in years — 5 years is typical for a car loan, 15–30 for a home loan.
- Step 4: Read the monthly payment, total payment and total interest, and adjust the tenure to see the trade-off.
Worked Example
Riya borrows ₹5,00,000 for a car at 8.5% p.a. for 5 years. The monthly payment works out to ₹10,258, so she pays ₹6,15,496 over the full tenure and ₹1,15,496 of that is interest. If she chose a 4-year tenure instead, the EMI would rise but the interest would fall — a good check before signing. Banks also add processing fees and GST on those fees, which the figure above does not include.
Tips and Common Mistakes
- •Tip 1: Compare tenures side by side — a shorter tenure always cuts total interest, sometimes by a third or more.
- •Tip 2: A higher down payment shrinks the loan amount and the interest charged on it, so pay what you can upfront.
- •Tip 3: Prepay whenever you have a windfall; most Indian lenders now charge little or no prepayment penalty on floating-rate loans.
- ✗Mistake 1: Do not pick a tenure just to hit a low EMI — the cheapest monthly figure is usually the most expensive loan.
- ✗Mistake 2: Do not ignore processing fees and GST on fees when comparing two offers with similar rates.
Frequently Asked Questions
How is the monthly payment calculated?
It uses the standard EMI formula with the interest rate divided by 12 and applied monthly on the outstanding balance. The payment stays fixed across the full tenure for a flat-rate loan at a fixed interest rate.
Should I use the payment calculator for a home loan or a car loan?
Both work the same way — enter the loan amount, annual interest rate and tenure. For a home loan in India, remember that banks usually link rates to repo or MCLR, so the actual rate can change mid-tenure.
What is the difference between total payment and total interest?
Total payment is the full amount you repay — principal plus interest — over the whole tenure. Total interest is just the interest part of that figure, so the difference between the two is the principal you borrowed.
Does this include processing fees?
No. Banks and NBFCs charge a processing fee, usually 0.5–1% of the loan amount, plus possibly insurance and GST on fees. Add those separately to get the true cost of the loan.
Can I use it for a personal loan?
Yes. Personal loans in India typically run 1–5 years at 10–24% interest, and the same EMI formula applies. A shorter tenure raises the EMI but sharply cuts the total interest.
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