Loan Interest Calculator
Estimate interest cost and total repayment for a loan. This page also compares a reducing-balance EMI estimate with a simple flat-rate illustration so you can see why the calculation method matters.
How loan interest is estimated
For a reducing-balance loan, interest is calculated on the outstanding principal each month. As principal is repaid, the interest portion of later instalments generally declines. A flat-rate illustration applies interest to the original principal for the whole term, so it is not directly equivalent to a reducing-balance rate and should not be treated as an APR comparison.
Interest rate calculator: what should you enter?
Use the annual rate quoted by your lender and the planned loan tenure. The estimate excludes fees, insurance, taxes, penalties, rate changes and other charges unless you account for them separately.
Frequently asked questions
Is this also a loan interest rate calculator?
It estimates interest cost using the annual rate you enter. It does not determine the rate a lender will offer you.
Why is reducing-balance interest different from flat interest?
Reducing-balance interest is charged on the remaining principal, while a flat-rate calculation applies the rate to the original principal across the full term.
Can I use it for a personal, home or car loan?
It can provide a general illustration for loans repaid over time. For EMI schedules and prepayment scenarios, use the loan EMI calculator or the relevant personal loan, home loan or car loan page.
Does this include lender fees?
No. This estimate focuses on interest and repayment under the selected assumptions. Check the lender's full repayment schedule and charges before deciding.
Related calculators
- Loan EMI calculator
- Personal loan interest calculator
- Home loan interest calculator
- Car loan interest calculator
For education only; not financial advice or a lender quote.