Loan EMI Comparison Calculator
Choosing between two loan offers? A lower interest rate isn't always cheaper if the tenure differs. This calculator compares two loans side by side on monthly EMI, total interest paid, and total cost — helping you pick the genuinely cheaper option.
Frequently Asked Questions
Why doesn't a lower interest rate always mean a lower total cost?+
A lower rate with a longer tenure can cost more overall. Example: 8.5% for 20 years on ₹50L costs ₹54.4L in interest. At 9% for 15 years, it costs ₹42.4L — less total interest despite the higher rate. Always compare total repayment, not just EMI or rate.
What's more important — low EMI or low total interest?+
It depends on your cash flow. Low EMI (longer tenure) is easier on monthly budget but costs more in total interest. Low total interest (shorter tenure) saves money over the loan life but strains monthly cash flow. A good rule: keep EMI under 40% of monthly take-home; minimise tenure within that constraint.
Should I switch my existing loan to a lower-rate offer?+
Calculate the break-even first: balance transfer fee + processing fee vs interest saved. If you're in the first half of the loan (mostly paying interest), the savings are significant. If you're near the end (mostly paying principal), switching may not be worth the hassle and fees.