Loan Interest Rate Calculator

Reverse-calculate the effective interest rate on any loan from the EMI amount, principal, and tenure.

Your Monthly EMI

โ‚น2,08,33,333

Principal

โ‚น10,00,000

Total Interest

โ‚น1,24,90,00,000

Total Payable

โ‚น1,25,00,00,000

Breakdown

Principal: โ‚น10,00,000 (0%)

Total Interest: โ‚น1,24,90,00,000 (100%)

Interest-to-Principal: 124900%

๐Ÿ“Š Interactive EMI Breakdown

Principal vs Interest

Principal: โ‚น10.00 L
Interest: โ‚น124.90 Cr

Year-by-Year Payment Split

Loan Scenario Comparison

MetricYour plan+1% Interest (25001.0%)+12 Months (72mo)
Monthly EMIโ‚น2,08,33,333โ‚น2,08,34,167 โ†‘ โ‚น834โ‚น2,08,33,333
Total Interestโ‚น1,24,90,00,000โ‚น1,24,90,50,000 โ†‘ โ‚น50,000โ‚น1,49,90,00,000 โ†‘ โ‚น25,00,00,000
Total Payableโ‚น1,25,00,00,000โ‚น1,25,00,50,000โ‚น1,50,00,00,000

Finding the Hidden Interest Rate

Many lenders quote flat rates, processing fees, or EMI amounts without clearly disclosing the effective annual rate. This calculator uses iterative numerical methods to back-calculate the exact reducing-balance interest rate from your actual EMI, so you can compare apples-to-apples across lenders.

Example: A car dealer offers โ‚น10L at "8% flat" for 5 years. EMI = โ‚น18,333. The effective reducing-balance rate is actually 14.8% โ€” nearly double the quoted flat rate.

Loan Interest Rate Calculator FAQ

๐Ÿ“˜ Key Term

Interest RateThe percentage charged by a lender on the principal amount, typically expressed as an annual percentage. Can be fixed (unchanging) or floating (linked to a benchmark rate like RBI repo rate).Read full definition โ†’