Loan Comparison Calculator
Compare two loan offers side by side and find the one that costs you less overall.
A lower EMI does not always mean a cheaper loan. This calculator shows you the total interest paid, total amount repaid, and the savings from choosing the better option — so you can make an informed borrowing decision.
What Is a Loan Comparison Calculator?
A loan comparison calculator lets you evaluate two loan offers simultaneously — comparing their monthly EMI, total amount paid over the loan tenure, and total interest cost. It gives you a clear answer on which loan is cheaper in absolute terms.
Banks often advertise lower EMIs, which can result from longer tenures rather than lower rates. This calculator exposes the full picture so you never choose a loan based on EMI alone.
How to Use This Calculator
- Enter Loan A details — the loan amount, interest rate (%), and tenure in years from the first lender.
- Enter Loan B details — the corresponding figures from the second lender or loan offer.
- Read the results — the calculator shows EMI, total payment, and total interest for both loans.
- Check the verdict — the winner is shown with the exact amount you save by choosing it.
- Factor in fees — add any processing fees, prepayment charges, or insurance costs before making your final decision.
EMI Formula
The calculator uses the standard Equated Monthly Instalment (EMI) formula:
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Tenure in months (years × 12)
Total interest paid = (EMI × n) − P. The loan with the lower total payment is the better deal.
Typical Home Loan Rates in India (2025)
| Lender | Rate Range (Floating) | Processing Fee |
|---|---|---|
| SBI Home Loan | 8.50% – 9.85% | Up to 0.35% |
| HDFC Bank | 8.70% – 9.95% | Up to 0.50% |
| ICICI Bank | 8.75% – 10.05% | Up to 0.50% |
| Kotak Mahindra | 8.75% – 9.60% | Up to 0.50% |
| LIC Housing Finance | 8.50% – 10.25% | Up to 0.25% |
Real-World Comparison Examples
Example 1: 0.5% Rate Difference on ₹50L Home Loan (20 Years)
Option A at 8.5%: EMI ≈ ₹43,391 | Total interest ≈ ₹54.1L
Option B at 9.0%: EMI ≈ ₹44,986 | Total interest ≈ ₹57.9L
Savings from Option A: ₹3.8 lakh over 20 years.
Example 2: Same Rate, Different Tenure (₹20L Car Loan)
5-year tenure at 10%: EMI ≈ ₹42,493 | Total interest ≈ ₹5.5L
7-year tenure at 10%: EMI ≈ ₹33,236 | Total interest ≈ ₹7.9L
The 7-year option has a lower EMI but costs ₹2.4L more in interest.
Tips for Choosing the Best Loan
- Always compare total cost, not just EMI — a longer tenure hides the true cost of the loan.
- Check for prepayment penalties — if you plan to make lump-sum payments, choose a lender with zero or low prepayment charges.
- Negotiate the rate — banks often offer better rates to salaried customers with good credit scores (750+).
- Include processing fees — add one-time fees to the total cost of each loan before comparing.
- Consider floating vs. fixed rates — floating rates may be lower now but can rise; fixed rates offer certainty.
Frequently Asked Questions
Compare EMI, total interest paid, processing fees, prepayment penalties, and flexibility. A lower EMI with longer tenure may cost more total interest over the loan's life.
On a ₹50L home loan, a 0.5% lower rate saves approximately ₹3–4L over 20 years. Use this calculator for exact figures based on your specific loan amount and tenure.
Shorter tenure means higher EMI but less total interest. Longer tenure means lower EMI but higher total cost. Choose based on your monthly cash flow — never stretch tenure just to get a "comfortable" EMI.
Yes — add processing fees (0.5–1% of loan) to total cost. A lower-rate loan with high fees may cost more overall, especially for shorter tenures where the fee is amortized over fewer years.
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P = principal, r = monthly rate (annual rate ÷ 12 ÷ 100), and n = tenure in months. This is the standard reducing balance formula used by all banks.
Not necessarily. Factor in processing fees, prepayment charges, and loan flexibility. Sometimes a slightly higher rate with zero prepayment penalty is better if you plan to repay early with bonuses or windfalls.
A longer tenure drastically increases total interest. For a ₹30L loan at 9%, a 20-year term costs ₹32.5L in interest while a 10-year term costs only ₹15.6L — doubling the tenure more than doubles the interest cost.