Loan Comparison Calculator
Compare two loans side by side - EMI, total interest, and total payment. Find which loan costs less overall.
Loan 1
Loan 2
🏆 Loan 2 saves ₹5.14 L overall
Loan 2 has a lower EMI by ₹2,929/month and also costs less overall — clearly the better deal.
EMI, Total Interest, and Total Payment comparison
| Metric | Loan 1 | Loan 2 |
|---|---|---|
| Monthly EMI | ₹17,356 | ₹20,285 |
| Total Interest | ₹21.66 L | ₹16.51 L |
| Total Payment | ₹41.66 L | ₹36.51 L |
About the Loan Comparison Calculator
When borrowing a large sum, even a 0.5% difference in interest rate can mean lakhs of rupees in total interest paid. Banks compete aggressively for home loan customers - comparing 3-4 lenders before signing is one of the highest-ROI financial activities you can do. This calculator shows you the full cost of two loans side by side: EMI, total interest, and total payment, so you can choose based on total outgo, not just the monthly payment.
Loan Cost Comparison
EMI = P × r × (1+r)^n / ((1+r)^n - 1) · Total Payment = EMI × n · Total Interest = Total Payment - P
P = Principal · r = Monthly interest rate · n = Tenure in months · Compare both Total Interest figures - not just EMI - to find the truly cheaper loan
Worked Example
₹50L home loan: Bank A at 8.5% for 20 years vs Bank B at 9.0% for 20 years
Bank A total interest: ₹54.1L · Bank B total interest: ₹57.9L · Difference: ₹3.8L over 20 years just for 0.5% higher rate
Tips & Insights
- 1
Factor in processing fees (0.5-1% of loan = ₹25,000-₹50,000 on a ₹50L loan) - they make the effective rate higher.
- 2
A lower EMI but longer tenure often costs more in total. Always compare total interest, not just monthly payment.
- 3
A CIBIL score of 750+ can save 0.25-0.5% on home loan rate across most banks.
- 4
Negotiate the rate after getting quotes from multiple banks - lenders often match competitor rates for creditworthy borrowers.
- 5
Balance transfers to lower-rate banks mid-loan can save significant interest but come with transfer costs.
Why this matters for you
On a ₹50L home loan, the difference between 8% and 9.5% rates is over ₹10 lakh in extra interest over 20 years. Most borrowers spend more time choosing a refrigerator than comparing loan offers. This calculator makes the comparison instant and shows the true lifetime cost of each option.