Loan Tenure Calculator
Borrowers usually ask what a loan costs each month and forget the mirror image: given what you can afford to pay, how many months does the balance genuinely need? This calculator works in that direction, turning an instalment and a rate into a tenure, so you can test whether a five-year target is realistic before anything is signed.
Enter values
Results
- Loan tenure
- 10 years 7 months
- Total interest
- ₹12,92,444.77
- Total payment
- ₹37,92,444.77
- Final instalment (part payment)
- ₹12,444.77
- Exact months from the formula
- 126.4
How is the Loan Tenure calculated?
Enter the amount still outstanding, the monthly instalment you can commit, and the annual reducing rate. The calculator solves the amortization formula for time, rounds up to whole instalments, and reports the tenure in years and months beside the interest and total payment. The closing instalment appears separately because it is usually a smaller part-payment.
Formula
n = −ln(1 − P·r ÷ EMI) ÷ ln(1 + r), where P is the outstanding balance, r the monthly rate (annual rate ÷ 12 ÷ 100) and EMI the fixed instalment; n comes out in months. When the EMI does not exceed P·r — the first month's interest — no finite n exists and the loan never ends. At 0% interest, n = P ÷ EMI.
Example
₹25,00,000 outstanding at 8.5% with a ₹30,000 EMI: the monthly rate is 0.007083, so n = −ln(1 − 17,708.33 ÷ 30,000) ÷ ln(1.007083) = 126.4 months. You need 127 instalments — 10 years 7 months — paying ₹12,92,444.77 of interest and ₹37,92,444.77 overall, with a final part-payment of ₹12,444.77.
Things to remember
The hard floor is the monthly interest: on ₹25,00,000 at 8.5% that is ₹17,708.33, so a ₹17,000 EMI leaves the balance growing every month and the loan never ends. Push above that line and time falls fast — ₹35,000 clears the same balance in 99.9 months instead of 126.4. Re-run the figures after any rate change.
Frequently Asked Questions
How long will ₹25 lakh take to repay at ₹30,000 EMI?
At 8.5% it needs 127 instalments — 10 years and 7 months — and costs ₹12,92,444.77 in interest. Raising the EMI to ₹35,000 finishes it in 99.9 months, while ₹40,000 clears it in about 83. Enter your own pair of numbers for the exact tenure at any rate.
Why does my bank's tenure differ from this result?
Banks round to whole months and often quote tenure in whole years, then adjust the final instalment. This calculator rounds the exact answer up and treats the last payment as a part-payment, so it usually lands a month or two short of a banker's rounded figure.
What happens when the EMI is below the monthly interest?
The loan never ends. On a ₹25,00,000 balance at 8.5% the interest alone is ₹17,708.33 a month, so a ₹17,000 instalment grows the balance by roughly ₹708 each month instead of shrinking it. The calculator says so plainly rather than inventing a finite period.
How can I shorten the tenure without raising the EMI?
Prepay a lump sum or add one extra instalment every year. ₹2,00,000 against a ₹12,00,000 balance at 9.5% with ten years left removes 29 months and ₹2,59,255.79 of interest. The prepayment calculator rebuilds the schedule for that scenario in full.
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