How to use the Loan Calculator
- Choose a question: how much you can borrow, how long repayment will take, or how much a prepayment saves.
- Enter the values that apply — EMI budget, loan amount, rate and tenure.
- For prepayments, add a lump sum (and the month you'll pay it) and/or a fixed extra amount every month.
How much loan can I afford?
Inverting the EMI formula gives the principal a given EMI can support:
P = EMI × ((1 + r)^n − 1) / (r × (1 + r)^n)Lenders typically cap total EMIs at 40–50% of your net monthly income, and they also assess your credit score, job stability and other obligations. Leave room for emergencies — the maximum a bank will lend is not necessarily what you should borrow.
How long will repayment take?
n = −log(1 − r × P / EMI) / log(1 + r)If the EMI is less than the first month's interest (P × r), the loan would never be repaid, and the calculator tells you so.
Why prepaying early saves so much
Early in a loan most of each EMI is interest. Any prepayment goes straight to principal, so every following month's interest is calculated on a smaller balance. The earlier the prepayment, the more months benefit. Use the EMI calculator to see the full amortization schedule.
Example
- An EMI of ₹30,000 at 9% for 20 years supports a loan of about ₹33.3 lakh.
- A ₹20 lakh loan at 9% repaid at ₹25,000 a month takes 123 months (10 years 3 months).
- A ₹20 lakh, 20-year loan at 9% has an EMI of ₹17,995 and total interest of about ₹23.2 lakh. A single ₹2 lakh prepayment in month 12 cuts the tenure to 190 months and saves roughly ₹7.1 lakh of interest.
Frequently asked questions
Should I reduce EMI or tenure after a prepayment?
Reducing tenure saves more interest. Reducing the EMI improves monthly cash flow. If you can afford the current EMI, keep it and shorten the tenure.
Are there prepayment charges?
RBI rules don't allow foreclosure or prepayment penalties on floating-rate loans to individual borrowers for non-business purposes. Fixed-rate and business loans may carry charges — check your loan agreement.
Is what I enter stored or sent anywhere?
No. Calculations and processing happen in your browser. Nothing you type is sent to our servers. Some tools remember your last input in this browser's local storage for convenience; you can clear it at any time.