This online Loan Calculator helps you to estimate your monthly payments, total interest and total repayment amount. For home loan, personal loan or car loan, this fast and accurate tool makes it easy to understand your loan obligations. This tool is also known as: EMI calculator, loan interest, calculate loan, loan payments, home loan calculator, personal loan calculator, car loan calculator etc.







 

How to Use the Loan Calculator:

1. Loan Amount: Enter the principal amount (Loan) you plan to borrow.
2. Interest Rate: Enter the annual interest rate offered on the loan.
3. Loan Tenure: Specify the loan tenure in years.
4. Click Calculate: Click the “Calculate” button to instantly see your estimated monthly payment, total interest, and total payment.

 

Important Considerations:

• Accuracy: This calculator provides estimates based on the information you input. Actual loan terms and interest rates may vary depending on the lender and your creditworthiness.
• Loan Products: Loan products and interest rates are subject to change. Always consult with a financial institution for the most up-to-date information.

 

Disclaimer:

• This loan calculator is for informational purposes only and should not be considered financial advice.

• This calculator uses a standard loan calculation formula. More complex loan calculations might involve additional fees or specific terms. Always consult with a lender for personalized loan information.

 

 

A loan is money you borrow from a lender that you must repay with interest.

Types of Loans

Loans generally fall into three main categories, each with a different repayment structure. Understanding these helps you choose the right loan and estimate costs accurately.

1. Amortized Loans: Fixed Payments Over Time

Most consumer loans are amortized loans, where you repay a fixed amount regularly until the loan is fully paid off. Each payment includes both principal and interest, gradually reducing the balance.

Common examples:

• Home loans (mortgages)
• Car loans
• Student loans
• Personal loans

This is the loan type most people mean when they say “loan.” For more accurate results, it’s often better to use a calculator specific to your loan type, such as a mortgage or auto loan calculator.

 

2. Deferred Payment Loans: One Lump Sum at the End

These loans require a single payment at maturity, covering both principal and interest. They are common in short-term or commercial lending.

Some loans (like balloon loans) may have small interim payments, but this category focuses on loans where everything is paid at once at the end.

 

3. Bonds: Lump Sum with a Different Structure

Bonds are a special type of loan usually issued by governments or corporations. The borrower pays a fixed face value when the bond matures.

Two main types:

• Coupon bonds: Pay periodic interest (annually or semi-annually)
• Zero-coupon bonds: Sold at a discount and pay no periodic interest; the full face value is paid at maturity

Bond prices fluctuate during their lifetime, but the maturity value remains fixed if there is no default.

 

Loan Basics Every Borrower Should Know

Interest Rate (APR vs APY)

• APR (Annual Percentage Rate): The true cost of borrowing, including fees
• APY (Annual Percentage Yield): Used for savings and investments, reflects compounding

APR is what borrowers should focus on when comparing loans.

Compounding Frequency

Interest can compound monthly, quarterly, or annually. More frequent compounding means higher total interest, even if the rate stays the same.

Loan Term

The loan term is how long you take to repay the loan:

• Longer terms: Lower monthly payments, higher total interest
• Shorter terms: Higher payments, lower total cost

Secured vs Unsecured Loans

Secured Loans

These loans require collateral, such as a house or car. If you default, the lender can seize the asset.

Examples: Mortgages, auto loans
Pros: Lower interest rates, easier approval
Cons: Risk of losing the asset

Unsecured Loans

These loans require no collateral. Approval depends on your creditworthiness, evaluated using the Five C’s of Credit:

• Character (credit history)
• Capacity (income vs debt)
• Capital (assets and savings)
• Collateral (not applicable here)
• Conditions (loan purpose and market conditions)

Examples: Credit cards, personal loans, student loans
Pros: No asset risk
Cons: Higher interest rates, lower limits, stricter approval

 

Conclusion

Not all loans work the same way. Knowing whether your loan is amortized, deferred, or bond-based—and whether it’s secured or unsecured—helps you understand repayments, interest costs, and risks. The right calculator and a clear understanding of these basics can save you significant money over time.