Loan Comparison Calculator
Compare two loan offers side by side — EMI, interest, fees with GST and the effective rate — and see which costs less.
Which costs less
| Figure | Offer A | Offer B |
|---|---|---|
| EMI | ₹25,845 | ₹26,511 |
| Total interest | ₹32,02,832 | ₹33,62,717 |
| Fees incl. GST | ₹29,500 | ₹0 |
| Total cost (interest + fees) | ₹32,32,332 | ₹33,62,717 |
| Effective rate, fees included | 8.54% | 8.75% |
The effective rate is the yearly rate on the money you actually receive after fees — the fairest single number for comparing offers with different fees.
The two offers
How is this calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = annual rate ÷ 12 ÷ 100
Fees = (P × fee% + fixed charges) × 1.18 with GST
Total cost = EMI × n − P + fees
Effective rate: the monthly rate m at which EMI × (1 − (1 + m)^−n) ÷ m = P − fees, × 12Runs in your browser — nothing you enter leaves this device.
About this tool
What it does
The loan comparison calculator puts two offers for the same loan side by side and tells you which costs less over its whole life. A lower interest rate is not always the cheaper loan: processing fees, legal and valuation charges and the GST on them come out of the money you receive, and a longer tenure adds interest even when the EMI looks smaller. So besides the EMI and total interest, it shows each offer’s total cost and an effective rate — the yearly rate on the money you actually get, fees included — which is the fairest single number for comparing them.
How to use it
- Enter the loan amount you need; both offers are for the same amount.
- For each offer, enter the interest rate, tenure, processing fee (as a percentage of the loan) and any fixed charges.
- Leave “Add 18% GST to fees” on unless the lender quoted fees with GST already included.
- Read which offer costs less, and by how much, then check the table for the EMI you would pay.
- Use it for a balance transfer too: Offer A is your current loan’s remaining balance and rate, Offer B the new lender’s, with its fees.
Limits and your data
- Rates are taken as fixed for the whole loan. For floating-rate loans, compare the spread over the benchmark, since both will move with it.
- Fees are taken as paid at the start, out of the loan. If you pay them separately, the comparison of total cost still holds.
- Insurance sold with a loan, prepayment charges and any rate reset are not included; ask each lender for them in writing.
- Comparing loans of different tenures is fair on total cost and effective rate, but the longer loan will always show more interest because you borrow for longer.
- Everything is calculated in your browser. The figures are kept in the page address so the link reopens them, and nothing is sent anywhere.
Questions
Why is there GST on the processing fee?
Fees for a loan are a charge for a financial service, and GST at 18% applies to them. The interest itself is exempt. Lenders often quote the fee without GST, so the amount you pay is 18% higher than the figure in the advert.
What is the effective rate?
It is the interest rate that would make your EMIs equal to the money you actually received after fees. A 9.5% loan with a 3% fee can have an effective rate above 10%, which is how it can cost more than a 10% loan with no fee.
Is a lower EMI always better?
No. A lower EMI often comes from a longer tenure, which means paying interest for longer. Look at the total cost to see what the lower EMI costs you in the end.
Can I use this for a car or personal loan?
Yes. The arithmetic is the same for any reducing-balance loan. Personal loans more often carry high fees, which makes the effective rate especially useful.