EMI Compare Calculator

## What is the EMI Compare Calculator? The EMI Compare Calculator allows you to compare loan offers from different banks side-by-side. Enter up to three loan scenarios with different amounts, interest rates, and tenures to see which gives the lowest total cost. ## Formula Used EMI = P x [r(1+r)^n] / [(1+r)^n - 1] To compare loans fairly: 1. Calculate EMI for each offer 2. Calculate Total Payment = EMI x Months 3. Calculate Total Interest = Total Payment - Principal 4. Compare total interest (not just EMI) — a lower EMI with longer tenure may have higher total interest ## Worked Example Loan 1: Rs 10 lakh, 8.5% p.a., 5 years EMI = Rs 20,677, Total interest = Rs 2,40,620, Total payment = Rs 12,40,620 Loan 2: Rs 10 lakh, 9.0% p.a., 5 years EMI = Rs 20,772, Total interest = Rs 2,46,320, Total payment = Rs 12,46,320 Difference: Loan 1 saves Rs 5,700 in total interest Processing fee for transfer (2%): Rs 20,000 — not worth it unless balance is large ## Frequently Asked Questions 1. Which is better — lower EMI or lower total interest? Lower total interest is always better — it means the loan costs you less in absolute terms. A lower EMI often comes from a longer tenure, which means you pay interest for more months. 2. Should I choose a bank with the lowest interest rate? Not always. Consider: processing fee (1 to 3% of loan, adds to effective cost), pre-payment terms, service quality, and loan features (top-up facility, balance transfer option). 3. How much does a 0.5% rate difference make on a Rs 10 lakh loan? A 0.5% rate difference on Rs 10 lakh at 8.5% vs 9.0% for 20 years: At 8.5%: Total interest = Rs 10,38,460. At 9.0%: Total interest = Rs 11,37,483. Difference = Rs 99,023 in extra interest. 4. Is it better to reduce tenure or EMI when you get a salary hike? Reducing tenure is mathematically superior. If your EMI increases by Rs 5,000/month and you reduce tenure by 3 years, you save lakhs in interest. 5. When should I do a balance transfer vs stay with my current loan? Balance transfer is worth it if: new rate is at least 0.5 to 0.75% lower (after accounting for transfer fees), you have more than 50% of the loan tenure remaining (more interest to save), and your credit score is good enough.