About payment calculator
A payment calculator tells you the fixed amount you must pay each period to clear a loan.
Use it to plan
- Try a few tenures to see the balance between affordable payments and total interest.
- Check that the payment fits within your monthly budget with some room to spare.
Payments vs EMI
For a reducing-balance loan the payment is the same as an EMI. If a lender uses a flat-rate method, the real cost is higher than the stated rate, so ask for the effective annual rate.
A worked example
A ₹3 lakh loan at 11 percent over 24 months needs payments of about ₹13,982, with total interest of around ₹35,600. Stretching it to 36 months lowers the payment to about ₹9,822 but raises the interest to roughly ₹53,600.
Checking affordability
A common guide is that all your EMIs together should stay under about 40 percent of your monthly take-home pay. Test several tenures and choose the payment that you can keep up even if your income dips for a few months.
