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Interest Rate Calculator
Before opting for a loan, know exactly how much you are liable to pay as interest with the help of a loan interest calculator. Enter a few relevant details about the credit availed and acquire in-depth information regarding monthly liabilities, total interest outgo and more.
Loan EMI
Rs.66,429
Total Interest Payable
Rs. 10,15,990
Total Payment (Principle + Interest)
Rs. 50,51,552
Total Interest
Principle Amount
Monthly interest calculation can be beneficial in several ways. You can calculate your liabilities beforehand to limit financial stress during repayment.
Steps to Use Interest Rate Calculator
The online monthly interest calculator ensures quick and error-free computation of interest and EMIs. Using a loan interest rate calculator is simple, with the interface being quite user-friendly. Simply follow these steps –
Step 1: Enter the loan principal amount in the appropriate field.
Step 2: Input the interest rate as quoted.
Step 3: Lastly, enter the repayment tenor. Convert your chosen tenor into months. For instance, if your repayment period is 5 years, enter 60 months in the field.
After you input these determinants, click on calculate and gain access to all relevant details regarding the EMI amount, total cost of loan, and more. Adjust the tenor to arrive at an EMI value as per your convenience.
Formula for Interest Calculation
Loan interest calculation and determining EMIs relies on a specific formula. Every interest calculator in India utilises the formula below -
EMI = P x r x (1+r) ^ n / {(1+r) ^ n-1}
In this equation, the different factors are as follows –
- P = Loan or principal amount
- r = Interest rate applicable
- n = Tenor in months
Consider the following example to assess how EMI calculation works.
Suppose you have availed a loan of Rs.15 lakh for a term of 4 years. Interest rate quoted to you is 13%. In such an event, the three determining factors for EMI calculation would be -
- P = = Rs.15,00,000
- r = = 13%
- n = 48 months
EMI = 15,00,000 x 13 x (1+13)^48 / {(1+13)^48-1}
EMI = Rs.40,241
Besides the EMIs, the interest rate calculator also displays other relevant information, including the total interest payable. In this case, the total interest would be Rs.4,31,568. Total cost of this personal loan would be Rs.15,00,000 + Rs.4,31,568 = Rs.19,31,568.
Use a home loan interest calculator after acquiring a housing credit. It works on a similar principle and follows the same formula.
FAQs
How to Calculate Interest on Loan?
Use the interest rate calculator by Bajaj Finserv to assess your interest liabilities. Simply enter details such as rate of interest, principal amount and tenor to calculate the total interest charged along with other relevant details.
How to Use an Interest Rate Calculator?
To use an online loan interest rate calculator, enter the loan amount you want to avail in the pertinent field. Next, enter the rate of interest charged followed by the repayment period you wish to opt for. Lastly, click on the ‘calculate’ bar to arrive at the results instantly. Using a personal loan interest calculator is just that simple.
What is the Difference Between Simple and Compound Interest?
A simple interest is calculated on your original loan principal. However, a compound interest calculation depends not just on the original loan amount but also on the accumulated interest during a compounding cycle.
Read more - Simple Interest Vs Compound Interest
What is Annual Percentage Rate?
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