Interest Calculator

Calculate the monthly interest payable and plan your loan repayment with ease using a loan interest calculator.

About the interest rate calculator

With the help of our loan interest calculator, your monthly interest calculation can be done effortlessly. You get to know exactly how much you are liable to pay as interest throughout the loan tenure. Enter a few relevant details about the credit you need and acquire in-depth information regarding EMI, total interest payable and more.

How to use the Bajaj Finance Interest Calculator?

The online monthly interest calculator ensures quick computation of interest and EMIs. Using a Bajaj Finance loan interest rate calculator is simple, with the interface being user-friendly. Here is how to use an interest rate calculator in three simple steps:

Step 1: Enter the loan amount you want to avail.
Step 2: Next, enter the rate of interest on your loan.
Step 3: Select the repayment period you wish to opt for and get accurate results instantly.

The formula for interest calculation

EMI is calculated using the below formula: -

EMI = P x R x (1+R)^N / [(1+R)^N-1]


P – Principal loan amount

R - Rate of interest (monthly)

N – Tenure (months)

Example of interest calculation for a loan

For instance, Riya took a personal loan of Rs. 1,00,000 at an interest rate of 15% p.a. for a tenure of 12 months. Here, Riya’s annual interest payable will be around Rs. 8,310, and her monthly EMI will be around Rs. 9,026.

Methods of calculating interest

The two primary methods of calculating the interest are simple interest rates and compound interest rates.

  • Simple interest is a straightforward calculation where interest is calculated solely on the principal amount.
  • Compound interest, on the other hand, takes into account both the principal and any accumulated interest, resulting in interest being earned on the initial amount as well as on the previously earned interest.


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.

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Frequently asked questions

How to use an interest calculator?

Using the Bajaj Finserv Interest Calculator is easy. To use an interest calculator, enter the loan amount you want to avail. Next, enter the rate of interest on your loan charged by the lender followed by the repayment period you wish to opt for and get accurate results instantly.

What are the advantages of using a loan interest rate calculator?

A loan interest rate calculator provides quick insights into potential loan costs, aiding financial planning. It facilitates comparison of loan offers, ensuring informed decisions. By estimating repayments and total interest, it empowers borrowers to budget effectively. This tool promotes transparency, enabling users to assess affordability and optimize financial choices.

What is the difference between simple and compound interest?

Simple interest is calculated on your loan principal amount. However, a compound interest calculation depends on the original loan amount and the accumulated interest during a compounding cycle of the loan tenure.

Read more: Difference Between Simple interest and Compound Interest

What are the factors that affect personal loan interest rates?

There are several factors that influence the personal loan interest rate that an individual gets. These include the borrowers' monthly income, credit score, repayment history, debt-to-income ratio, and lender-borrower relationship. In order to gain a good interest rate on your personal loan, and thereby reduce the cost of borrowing, it is advisable to ensure that all of these parameters are healthy.

How can an interest calculator help you?

An interest calculator is an online tool that makes your interest calculations easy. Manually calculating interest on different loan amounts before applying can be a tedious task. Moreover, the chances of errors while making these calculations manually are higher as well. With an interest calculator, you can check the interest payable for different loans amount within just a few seconds. The output from the interest calculator, helps you to decide the loan terms with ease.

How can I calculate interest rates?

To calculate interest rates, use the formula: Interest = Principal × Rate × Tenure. This equation helps determine the interest rate on investments or loans.

What are the advantages of using a loan interest rate calculator?

A loan interest rate calculator offers several benefits. It provides accurate estimates of monthly payments, helping borrowers plan their budgets effectively. It aids in comparing various loan options, enabling informed decisions.

What is a 12% interest?

At 12% interest on the loan of Rs. 1 lakh for the tenure of 24 months amounts to Rs. 4707. Borrowers can use the interest calculator to know the interest payable for multiple loan amounts by inputting principal, interest rate, and tenure.

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