Worked example
For ₹5,00,000 at 10% over 3 years, monthly payment rounds to ₹16,134 and total interest to ₹80,809. Over 5 years, the payment falls to ₹10,624 while total interest rises to ₹1,37,411.
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Borrowing tool
Loan Calculator
Estimate monthly payment, total interest, and the complete cost of a reducing-balance loan.
Calculation result
Detailed estimate
Enter your details to see the estimate.
Frequently asked questions
What is loan payment?
A reducing-balance loan charges interest on the outstanding principal. Longer tenure lowers the payment but usually increases total interest.
Is this result guaranteed?
No. This is an educational estimate based on the values entered. Verify current product, tax, employment, or pension rules before making decisions.
Can I change the assumptions?
Yes. Every rate and time assumption shown in the form can be adjusted to compare scenarios.
Practical guidance
Use the Loan Calculator with confidence
Estimate a reducing-balance loan payment and total repayment from amount, annual rate and years. Compare the cost of shorter and longer tenures.
Assumptions and limits
This compact formula uses years × 12 directly, including fractional months. It assumes a constant rate and excludes fees, rate changes, prepayment and late payment. Results display whole rupees while totals use the unrounded payment.
How to read the result
A smaller monthly payment can mean a more expensive loan when the tenure is longer. Total repayment includes principal plus modeled interest only.
Inputs and units
Enter loan principal in rupees, annual reducing-balance interest percentage, and tenure in years. For a whole number of installments, use a tenure equivalent to whole months.
Formula and variables
Monthly payment = P × r × (1 + r)^n / ((1 + r)^n − 1), where r = annual percentage / 1200 and n = years × 12. At zero interest, payment = P / n.
Comparisons and common mistakes
Open EMI to inspect principal and interest over time and download a schedule. Simple Interest is not an interchangeable loan quote because it charges against the original principal throughout.
Does total repayment include all borrowing costs?
No. Add relevant charges from the lender disclosure and compare the APR and repayment terms. An entered interest rate alone does not capture every cost.
Guide checked
Read our calculation methodology Guide checked against the web calculator by an automated coding assistant. Independent professional review is not recorded.
Substantive guide update: .