Loan Comparison Calculator
Put loan offers side by side and see which one really costs less once fees are included.
- Free
- No sign-up
- Runs in your browser
Loan details
Offer A
Offer B
Offer A is cheaper by
₹747
Offer A costs ₹99,297 in interest and fees, against ₹1,00,044 for Offer B.
| Item | Offer A ✓ | Offer B |
|---|---|---|
| Monthly EMI | ₹16,369₹16.4K | ₹16,251₹16.3K |
| Total interest | ₹89,297₹89.3K | ₹85,044₹85K |
| Processing fee | ₹10,000₹10K | ₹15,000₹15K |
| Interest + fee | ₹99,297₹99.3K | ₹1,00,044₹1L |
| Total repaid | ₹5,99,297₹5.99L | ₹6,00,044₹6L |
| Effective rate | 12.4% | 12.61% |
| Tenure | 3y | 3y |
Effective rate = the yearly rate you really pay once the processing fee is counted (the fee reduces the money you receive).
- Offer B has the lowest interest rate, but Offer A is cheaper overall once processing fees are included.
- Offer B has the smallest EMI (₹16,251), but costs ₹747 more in total.
Cost of each offer
- Total interest
- Processing fee
How the loan comparison works
For each offer the calculator works out the monthly EMI with the standard reducing-balance formula, multiplies it by the number of months to get everything you repay, and subtracts the loan amount to get the total interest. It then adds the one-time processing fee. The offer with the smallest interest + fee is the cheaper loan, and the difference is how much you save.
Example: for a ₹5,00,000 personal loan over 3 years, Offer A charges 11% with a 2% fee and Offer B charges 10.5% with a 3% fee. Offer A’s EMI is ₹16,369 and it costs ₹89,297 in interest plus ₹10,000 in fees — ₹99,297 in total. Offer B’s EMI is ₹16,251, with ₹85,044 interest and a ₹15,000 fee — ₹1,00,044. Despite the higher rate, Offer A is cheaper by ₹747.
Lowest EMI or lowest total cost?
A longer tenure always lowers the EMI, but you pay interest for more months, so the total cost goes up. If the EMI fits your budget, the shorter loan is cheaper. Choose the longer one only if you need the lower monthly payment — and prepay when you can.
What is the effective interest rate?
A processing fee is deducted from what you receive, yet you repay the full loan, so the real cost is higher than the quoted rate. In the example, Offer A’s 11% becomes about 12.40% and Offer B’s 10.5% about 12.61% once fees are counted. When offers have different tenures, the effective rate is the fairest single number to compare.
Frequently asked questions
- Should I include GST or other charges in the fee?
- Yes. Add any tax on the fee, documentation, insurance or stamp charges the lender requires — switch the fee to “Amount” to enter the exact total.
- Does this work for floating-rate loans?
- It compares offers at today’s rates. If rates change later, both loans are usually affected, so the comparison still guides you, but the exact figures will differ.
- What about prepayment charges?
- They are not included. If you plan to repay early, prefer the offer with no or low foreclosure charges — it can outweigh a small rate difference.
- Is a flat-rate offer comparable here?
- No — enter reducing-balance rates only. A flat rate charges interest on the original amount for the whole loan and is far more expensive than it looks; ask the lender for the reducing-balance equivalent.