Bank Loan Interest Calculator
Free bank loan interest calculator to calculate monthly payments, total interest, and repayment schedule. Plan your bank loans for India, Bangladesh, UAE with SBI and Canara Bank presets. Export to Excel and view detailed amortization schedules.
Bank Preset
Region
Loan Details
Enter the loan amount
Annual interest rate percentage
Loan term in years (1-50)
Used for amortization schedule dates
Results
Monthly Payment
$10,258.27
Total Interest
$115,495.94
Total Payment
$615,495.94
Loan Amount
$500,000.00
Payment Schedule
| Month | Date | Beginning Balance | Principal | Interest | Prepayment | Total Payment | Ending Balance |
|---|---|---|---|---|---|---|---|
| 1 | January 1, 2025 | $500,000.00 | $6,716.60 | $3,541.67 | $0.00 | $10,258.27 | $493,283.40 |
| 2 | February 1, 2025 | $493,283.40 | $6,764.17 | $3,494.09 | $0.00 | $10,258.27 | $486,519.23 |
| 3 | March 1, 2025 | $486,519.23 | $6,812.09 | $3,446.18 | $0.00 | $10,258.27 | $479,707.14 |
| 4 | April 1, 2025 | $479,707.14 | $6,860.34 | $3,397.93 | $0.00 | $10,258.27 | $472,846.80 |
| 5 | May 1, 2025 | $472,846.80 | $6,908.93 | $3,349.33 | $0.00 | $10,258.27 | $465,937.86 |
| 6 | June 1, 2025 | $465,937.86 | $6,957.87 | $3,300.39 | $0.00 | $10,258.27 | $458,979.99 |
| 7 | July 1, 2025 | $458,979.99 | $7,007.16 | $3,251.11 | $0.00 | $10,258.27 | $451,972.83 |
| 8 | August 1, 2025 | $451,972.83 | $7,056.79 | $3,201.47 | $0.00 | $10,258.27 | $444,916.04 |
| 9 | September 1, 2025 | $444,916.04 | $7,106.78 | $3,151.49 | $0.00 | $10,258.27 | $437,809.27 |
| 10 | October 1, 2025 | $437,809.27 | $7,157.12 | $3,101.15 | $0.00 | $10,258.27 | $430,652.15 |
| 11 | November 1, 2025 | $430,652.15 | $7,207.81 | $3,050.45 | $0.00 | $10,258.27 | $423,444.34 |
| 12 | December 1, 2025 | $423,444.34 | $7,258.87 | $2,999.40 | $0.00 | $10,258.27 | $416,185.47 |
| 13 | January 1, 2026 | $416,185.47 | $7,310.29 | $2,947.98 | $0.00 | $10,258.27 | $408,875.18 |
| 14 | February 1, 2026 | $408,875.18 | $7,362.07 | $2,896.20 | $0.00 | $10,258.27 | $401,513.12 |
| 15 | March 1, 2026 | $401,513.12 | $7,414.21 | $2,844.05 | $0.00 | $10,258.27 | $394,098.90 |
| 16 | April 1, 2026 | $394,098.90 | $7,466.73 | $2,791.53 | $0.00 | $10,258.27 | $386,632.17 |
| 17 | May 1, 2026 | $386,632.17 | $7,519.62 | $2,738.64 | $0.00 | $10,258.27 | $379,112.55 |
| 18 | June 1, 2026 | $379,112.55 | $7,572.89 | $2,685.38 | $0.00 | $10,258.27 | $371,539.66 |
| 19 | July 1, 2026 | $371,539.66 | $7,626.53 | $2,631.74 | $0.00 | $10,258.27 | $363,913.14 |
| 20 | August 1, 2026 | $363,913.14 | $7,680.55 | $2,577.72 | $0.00 | $10,258.27 | $356,232.59 |
| 21 | September 1, 2026 | $356,232.59 | $7,734.95 | $2,523.31 | $0.00 | $10,258.27 | $348,497.64 |
| 22 | October 1, 2026 | $348,497.64 | $7,789.74 | $2,468.52 | $0.00 | $10,258.27 | $340,707.90 |
| 23 | November 1, 2026 | $340,707.90 | $7,844.92 | $2,413.35 | $0.00 | $10,258.27 | $332,862.98 |
| 24 | December 1, 2026 | $332,862.98 | $7,900.49 | $2,357.78 | $0.00 | $10,258.27 | $324,962.49 |
| 25 | January 1, 2027 | $324,962.49 | $7,956.45 | $2,301.82 | $0.00 | $10,258.27 | $317,006.05 |
| 26 | February 1, 2027 | $317,006.05 | $8,012.81 | $2,245.46 | $0.00 | $10,258.27 | $308,993.24 |
| 27 | March 1, 2027 | $308,993.24 | $8,069.56 | $2,188.70 | $0.00 | $10,258.27 | $300,923.68 |
| 28 | April 1, 2027 | $300,923.68 | $8,126.72 | $2,131.54 | $0.00 | $10,258.27 | $292,796.95 |
| 29 | May 1, 2027 | $292,796.95 | $8,184.29 | $2,073.98 | $0.00 | $10,258.27 | $284,612.67 |
| 30 | June 1, 2027 | $284,612.67 | $8,242.26 | $2,016.01 | $0.00 | $10,258.27 | $276,370.41 |
| 31 | July 1, 2027 | $276,370.41 | $8,300.64 | $1,957.62 | $0.00 | $10,258.27 | $268,069.76 |
| 32 | August 1, 2027 | $268,069.76 | $8,359.44 | $1,898.83 | $0.00 | $10,258.27 | $259,710.33 |
| 33 | September 1, 2027 | $259,710.33 | $8,418.65 | $1,839.61 | $0.00 | $10,258.27 | $251,291.67 |
| 34 | October 1, 2027 | $251,291.67 | $8,478.28 | $1,779.98 | $0.00 | $10,258.27 | $242,813.39 |
| 35 | November 1, 2027 | $242,813.39 | $8,538.34 | $1,719.93 | $0.00 | $10,258.27 | $234,275.05 |
| 36 | December 1, 2027 | $234,275.05 | $8,598.82 | $1,659.45 | $0.00 | $10,258.27 | $225,676.24 |
| 37 | January 1, 2028 | $225,676.24 | $8,659.73 | $1,598.54 | $0.00 | $10,258.27 | $217,016.51 |
| 38 | February 1, 2028 | $217,016.51 | $8,721.07 | $1,537.20 | $0.00 | $10,258.27 | $208,295.45 |
| 39 | March 1, 2028 | $208,295.45 | $8,782.84 | $1,475.43 | $0.00 | $10,258.27 | $199,512.61 |
| 40 | April 1, 2028 | $199,512.61 | $8,845.05 | $1,413.21 | $0.00 | $10,258.27 | $190,667.56 |
| 41 | May 1, 2028 | $190,667.56 | $8,907.70 | $1,350.56 | $0.00 | $10,258.27 | $181,759.85 |
| 42 | June 1, 2028 | $181,759.85 | $8,970.80 | $1,287.47 | $0.00 | $10,258.27 | $172,789.05 |
| 43 | July 1, 2028 | $172,789.05 | $9,034.34 | $1,223.92 | $0.00 | $10,258.27 | $163,754.71 |
| 44 | August 1, 2028 | $163,754.71 | $9,098.34 | $1,159.93 | $0.00 | $10,258.27 | $154,656.37 |
| 45 | September 1, 2028 | $154,656.37 | $9,162.78 | $1,095.48 | $0.00 | $10,258.27 | $145,493.59 |
| 46 | October 1, 2028 | $145,493.59 | $9,227.69 | $1,030.58 | $0.00 | $10,258.27 | $136,265.90 |
| 47 | November 1, 2028 | $136,265.90 | $9,293.05 | $965.22 | $0.00 | $10,258.27 | $126,972.85 |
| 48 | December 1, 2028 | $126,972.85 | $9,358.87 | $899.39 | $0.00 | $10,258.27 | $117,613.98 |
| 49 | January 1, 2029 | $117,613.98 | $9,425.17 | $833.10 | $0.00 | $10,258.27 | $108,188.81 |
| 50 | February 1, 2029 | $108,188.81 | $9,491.93 | $766.34 | $0.00 | $10,258.27 | $98,696.88 |
| 51 | March 1, 2029 | $98,696.88 | $9,559.16 | $699.10 | $0.00 | $10,258.27 | $89,137.72 |
| 52 | April 1, 2029 | $89,137.72 | $9,626.87 | $631.39 | $0.00 | $10,258.27 | $79,510.85 |
| 53 | May 1, 2029 | $79,510.85 | $9,695.06 | $563.20 | $0.00 | $10,258.27 | $69,815.78 |
| 54 | June 1, 2029 | $69,815.78 | $9,763.74 | $494.53 | $0.00 | $10,258.27 | $60,052.05 |
| 55 | July 1, 2029 | $60,052.05 | $9,832.90 | $425.37 | $0.00 | $10,258.27 | $50,219.15 |
| 56 | August 1, 2029 | $50,219.15 | $9,902.55 | $355.72 | $0.00 | $10,258.27 | $40,316.60 |
| 57 | September 1, 2029 | $40,316.60 | $9,972.69 | $285.58 | $0.00 | $10,258.27 | $30,343.91 |
| 58 | October 1, 2029 | $30,343.91 | $10,043.33 | $214.94 | $0.00 | $10,258.27 | $20,300.58 |
| 59 | November 1, 2029 | $20,300.58 | $10,114.47 | $143.80 | $0.00 | $10,258.27 | $10,186.11 |
| 60 | December 1, 2029 | $10,186.11 | $10,186.11 | $72.15 | $0.00 | $10,258.27 | $0.00 |
Understanding Bank Loan Interest Calculation
A bank loan interest calculator is an essential financial tool that helps borrowers understand the true cost of borrowing money from banks. Whether you're planning to take a personal loan, home loan, car loan, or any other type of bank loan, understanding how interest is calculated and how it affects your monthly payments is crucial for making informed financial decisions.
How Bank Loan Interest Works
Bank loan interest is calculated using the reducing balance method, where interest is charged on the outstanding principal amount. Each monthly payment consists of two components: principal repayment and interest payment. As you make payments over time, the principal balance decreases, which means the interest portion of your payment also decreases, while the principal portion increases.
The monthly payment calculation uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where M represents the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12). This formula ensures that your loan is fully repaid by the end of the loan term.
Bank Loan Interest Calculator for India
For borrowers in India, bank loan interest rates vary significantly between different banks and loan types. The State Bank of India (SBI) and Canara Bank are among the major public sector banks offering competitive interest rates. Our bank loan interest calculator India feature allows you to quickly calculate your EMI (Equated Monthly Installment) and total interest payable for loans from these banks.
Indian banks typically offer personal loans at interest rates ranging from 8.5% to 15% per annum, while home loans may have rates between 8.5% and 9.5%. The calculator supports INR currency formatting and provides accurate calculations based on current market rates. You can use the SBI bank loan interest calculator preset to get started with current SBI rates, or customize the rate to match your specific loan offer.
Monthly Payment Calculation
The bank loan interest calculator monthly feature provides a detailed breakdown of your monthly payments throughout the loan tenure. Each payment includes the principal amount, interest amount, and any prepayments you make. The calculator shows how your loan balance reduces over time and how much interest you pay each month.
Understanding your monthly payment structure is crucial for budgeting and financial planning. The calculator helps you see exactly how much of each payment goes toward reducing your principal balance versus paying interest. This information is particularly useful when considering prepayment options, as you can see how additional payments affect your total interest cost and loan tenure.
Bank Loan Interest Calculator Formula
The bank loan interest calculator formula is based on the standard loan amortization formula used by banks worldwide. The formula calculates the fixed monthly payment required to fully repay a loan over a specified term at a given interest rate. The interest portion of each payment is calculated as the outstanding principal balance multiplied by the monthly interest rate.
For those who prefer to understand the mathematical foundation, the formula ensures that the present value of all future payments equals the loan amount. This means that when you make all scheduled payments, the loan is completely paid off, with no balance remaining. The calculator also accounts for prepayments, recalculating the remaining balance and adjusting the payment schedule accordingly.
Regional Bank Loan Calculators
Our bank loan interest calculator supports multiple regions including India, Bangladesh, and UAE, each with appropriate currency formatting and default interest rates. The bank loan interest calculator in Bangladesh feature supports BDT currency and accounts for typical interest rates in the Bangladeshi banking sector, which generally range from 9% to 12% for personal loans.
Similarly, the bank loan interest calculator UAE supports AED currency and reflects interest rates common in the UAE banking sector, typically ranging from 4% to 6% for personal loans. The calculator automatically adjusts currency formatting and provides region-specific default rates to make calculations more convenient for borrowers in these regions.
Excel Export and Advanced Features
The bank loan interest calculator in Excel feature allows you to export your complete payment schedule to a CSV file that can be opened in Microsoft Excel, Google Sheets, or any spreadsheet application. This is particularly useful for detailed financial analysis, sharing with financial advisors, or keeping records for your personal financial planning.
The calculator also supports prepayment scenarios, allowing you to simulate one-time prepayments, yearly prepayments, or monthly prepayments. This helps you understand how prepayments can reduce your total interest cost and shorten your loan tenure. The calculator shows you exactly how much interest you'll save and how many months you'll save by making prepayments.
Using the Calculator Effectively
To get the most accurate results from the bank loan interest calculator, ensure you have the correct loan amount, annual interest rate, and loan term. If you're using a bank preset like SBI or Canara Bank, the calculator will automatically set the interest rate based on current market rates. However, you can always customize the rate to match your specific loan offer.
The calculator provides both monthly and year-wise views of your payment schedule, making it easy to understand your loan structure over time. The year-wise view is particularly helpful for long-term financial planning, as it shows your payment breakdown by year and helps you track your loan balance reduction over time.
Whether you're planning to take a new bank loan, considering refinancing, or exploring prepayment options, this bank loan interest calculator provides all the information you need to make informed financial decisions. It's an essential tool for anyone dealing with bank loans in India, Bangladesh, UAE, or any other region, helping you understand the true cost of borrowing and plan your repayment strategy effectively.