Loan Calculator
Work out your loan payment, the total interest, and how much paying a little extra each time would save.
Year-by-year schedule
| Year | Principal paid | Interest paid | Balance left |
|---|
How your loan payment is worked out
Payment = loan × rate per payment ÷ (1 − (1 + rate)^−payments).
- 1
Rate per payment
6% ÷ 12 = 0.5%
- 2
Number of payments
30 years × 12
= 360 payments - 3
Each payment
₹2,00,000
× 0.005÷ 0.8340= ₹1,199 - 4
Total interest
Repaid ₹4,31,676
− ₹2,00,000
= ₹2,31,676
Read more: the formula, a worked example and paying every two weeks
Each payment first covers the interest that has built up since the last one, and the rest reduces the balance. Because the balance shrinks, the interest part gets smaller every time and more of each payment goes to the loan itself.
payment = P × i ÷ (1 − (1 + i)^−n)
Here P is the loan amount, i is the interest rate per payment (the annual rate ÷ payments per year), and n is the total number of payments.
Worked example
A 200,000 loan at 6% over 30 years is 360 monthly payments of 1,199.10. Over the life of the loan that adds up to 431,676, so 231,676 is interest. Paying an extra 200 a month clears it in 21 years instead of 30 and saves about 79,800 in interest.
Paying every two weeks
Paying every two weeks means 26 payments a year. That's the equivalent of 13 monthly payments instead of 12, if you simply pay half your monthly amount each time. Here the payment is recalculated for 26 payments a year at the same rate and term, so you can compare them fairly.
Assumes a fixed interest rate and no fees. Check your loan agreement for prepayment charges before making extra payments.