Disclaimer
Results generated by the calculator(s) are indicative in nature. The interest rate applied on the loan will depend on the prevailing rates at the time of loan booking.
The calculator(s) are not intended to provide its users/ customers with results that are either certified by Bajaj Finance Limited (“BFL”) or are an obligation, assurance, warranty, undertaking or commitment, financial and professional advice by BFL, under any circumstances. The calculator(s) is only a tool that assists the users/ customers arrive at results of various illustrative scenarios generated from data input by the user/ customer. The use of the calculator is entirely at the risk of the user/ customer, BFL is not responsible for any reason, for any errors in any outcome resulting from the use of the calculator.
Frequently asked questions
To use an interest calculator, enter the loan amount, interest rate, and repayment tenure. The calculator instantly displays the monthly interest, EMI, and total repayment amount. This helps compare loan options, adjust tenure, and understand affordability. Using an interest calculator eliminates manual errors and supports better financial planning before borrowing, ensuring clarity on repayment obligations and long-term costs.
Personal loan interest rates depend on credit score, income stability, employment type, loan amount, tenure, and lender policies. Market conditions, inflation, and RBI rates also influence pricing. Borrowers with strong credit histories and stable income usually receive lower rates, while higher-risk profiles attract higher interest rates to compensate lenders for the increased default risk.
An interest calculator helps you estimate EMIs, monthly interest, and total repayment before applying for a loan. It allows you to test different loan amounts and tenures, plan budgets accurately, and avoid over-borrowing. This tool supports informed decision-making by clearly showing the financial impact of interest rates on repayments.
You can calculate interest rates using standard formulas or online calculators. By entering the principal amount, tenure, and interest rate, you can find the interest payable and the EMI. Online tools simplify this process by automatically applying formulas, saving time and reducing calculation errors while helping borrowers understand repayment costs more clearly.
The real interest rate refers to the interest rate adjusted for inflation. It shows the actual purchasing power of money earned or paid on a loan or investment. The real interest rate equals the nominal interest rate minus the inflation rate, helping borrowers and investors understand the actual cost or return in economic terms.
To calculate monthly interest, multiply the outstanding loan balance by the annual interest rate and divide by twelve. This shows the interest charged for that month. EMI calculators perform this automatically, adjusting the monthly interest as the principal reduces, helping borrowers track the repayment structure and understand how interest and principal components change over time.
A fixed interest rate remains constant throughout the loan tenure. To calculate interest, apply the agreed rate to the loan principal for the entire period. EMIs stay unchanged, offering predictable repayments. Fixed-rate calculations are more straightforward and more stable, especially during volatile market conditions when floating rates may fluctuate significantly.
Simple interest is calculated using the formula: Principal × Rate × Time. For an 11% rate, multiply the principal by 0.11 and the loan duration in years. This method does not compound interest and is commonly used for short-term loans or for basic financial calculations to understand interest costs.
A fixed interest rate remains constant throughout the loan tenure, offering predictable EMIs; a floating interest rate changes with market conditions, RBI rates, or benchmarks. Fixed rates provide stability, while floating rates may start lower but can increase or decrease over time, affecting monthly repayments.
A return calculator helps estimate investment returns based on the amount invested, the time period, and the expected rate of return. It shows maturity value, total gains, and growth trends. Investors use return calculators to compare options, plan financial goals, and understand how investments grow over time with compounding.
CAGR, or Compound Annual Growth Rate, is calculated using the formula: (Ending Value ÷ Beginning Value)^(1 ÷ Number of Years) minus one. It shows the average annual growth rate of an investment over time, smoothing out fluctuations and helping accurately compare long-term performance across different investment options.
FV, or Future Value, is calculated using the formula: FV = PV × (1 + r)^n, where PV is the present value, r is the interest rate, and n is the number of periods. It estimates how much an investment or savings will grow over time with compounding.
The power of compounding refers to earning interest on both the principal and previously earned interest. Over time, compounding significantly increases investment value or loan cost. The longer the duration and the higher the rate, the stronger the effect, making early investing beneficial and long-term borrowing more expensive if not managed carefully.
To convert a number into a percentage, multiply it by one hundred and add the percent symbol. For example, 0.25 becomes 25%. Percentages are widely used in finance to express interest rates, growth, discounts, and ratios, making comparisons easier and calculations more understandable in everyday financial decisions.
To calculate half-yearly interest, divide the annual interest rate by two and apply it for six months. Use the outstanding principal to find interest for that period. In compound interest, compounding occurs twice a year, increasing total interest compared to annual compounding, especially for long tenures.
Uncontrollable factors affecting interest rates include inflation, RBI monetary policy, economic growth, global market conditions, and government fiscal policies. Changes in repo rates, liquidity, and inflation expectations directly influence lending rates. Borrowers cannot control these factors, but should monitor trends to choose suitable loan timing and interest structures wisely.
Controllable factors include credit score, income stability, employment type, loan amount, tenure, and existing liabilities. Maintaining good credit behaviour, making timely repayments, keeping debt low, and maintaining a stable income improve eligibility for lower interest rates. Borrowers can actively manage these factors to negotiate better loan terms and reduce borrowing costs.
To secure better interest rates, maintain a high credit score, repay dues on time, keep credit utilisation low, and avoid frequent loan applications. Compare lenders, choose a suitable tenure, and negotiate where possible. Applying with a stable income and minimal existing debt improves bargaining power and increases chances of lower interest rates.
