Loan Comparison Calculator
Two lenders, two rates — one clear winner.
Compare two loans side by side — EMI, total interest, effective cost and loan health — all computed by the same shared engine used across every EMI360 calculator.
Loan A
Loan B
Comparison snapshot
LiveVerdict
Loan B wins.
Loan B saves ₹2.64 L in interest.
Interest saved: ₹2,63,619 · EMI difference ₹1,098
Monthly EMI
₹30,374
₹29,275
Total interest
₹37,89,715
₹35,26,097
Total repayment
₹72,89,715
₹70,26,097
Closing date
Sept 2046
Sept 2046
Effective cost
Total repayment ÷ loan amount
208.3%
200.7%
Total interest ratio
Interest ÷ principal
108.3%
100.7%
Loan health
62/100 · Fair
65/100 · Good
EMI & Interest
Side-by-side comparison
Outstanding balance
Balance over time
Both scenarios are computed by the same shared EMI engine used across every EMI360 calculator. Processing fees, foreclosure charges and insurance are not included — factor them in before you switch lenders.
About the Loan Comparison Calculator
Two lenders quote you rates a quarter of a percent apart and the choice looks obvious. It usually isn't. Processing fees, tenure differences, insurance bundling and prepayment terms routinely swamp a 25 bps rate gap, and the offer with the better headline is frequently the more expensive loan once everything is counted.
This tool puts both offers side by side on a single measure — total money out of your pocket — so the comparison stops being a rate contest. That is the only number that decides which loan actually costs less.
Worked example: 8.6% with a low fee vs 8.35% with a high fee
- Offer A
- ₹25 L @ 8.6%, 20y
- Offer A — EMI
- ₹21,854
- Offer A — total + fee
- ₹52,52,477 (₹7,500 fee)
- Offer B
- ₹25 L @ 8.35%, 20y
- Offer B — EMI
- ₹21,459
- Offer B — total + fee
- ₹51,88,118 (₹38,000 fee)
Offer A: ₹25 L at 8.6% over 20 years with a ₹7,500 flat processing fee. EMI ₹21,854, total interest ₹27,44,977, total outflow ₹52,52,477. Offer B: the same loan at 8.35% with a 1.5% processing fee of ₹37,500 plus GST — call it ₹38,000. EMI ₹21,459, total interest ₹26,50,118, total outflow ₹51,88,118. Offer B wins by ₹64,359, so the lower rate does hold up here — but only because the tenure is long enough for a ₹94,859 interest saving to absorb a ₹30,500 fee gap.
Now shorten the tenure. Run the same two offers over 5 years instead of 20 and the interest gap collapses to roughly ₹16,000, while the ₹30,500 fee difference doesn't move at all. Offer A — the higher rate — becomes the cheaper loan. This is the trap on short-tenure and personal loans: fees are fixed costs, interest savings are proportional to time, and below a certain tenure the fee always wins.
Two more items belong in the comparison and rarely make it in. Bundled credit-life insurance, often ₹40,000–1,00,000 financed into the principal, is negotiable and frequently optional despite how it's presented. And prepayment terms: if you expect to close early, a loan with a 2% foreclosure charge can cost more than one 50 bps dearer.
How it’s calculated
Total cost = (EMI × months) + processing fee + GST + bundled charges − any waivers
Each offer is amortized separately at its own rate and tenure, then the upfront charges are added to the total repayment. Comparing on total cost rather than on EMI or rate removes the two most common distortions at once: a longer tenure that flatters the EMI, and a low rate that hides an expensive fee.
When the two offers have different tenures, the totals are not directly comparable — a 20-year loan will always cost more in absolute rupees than a 15-year one. In that case, equalise the tenure first, then compare. Only after the term matches does total outflow become an honest ranking.
What decides which offer actually wins
Tenure length relative to the fee gap
Fees are fixed; interest savings scale with time. On long tenures the lower rate usually wins; on short ones the lower fee almost always does.
Processing fee structure
Flat fee versus a percentage of principal changes the ranking completely as loan size grows. Read which one each lender is quoting.
Bundled insurance
Credit-life premiums financed into the loan add both principal and interest. Ask for the offer with and without it before comparing.
Rate type and reset frequency
A fixed-rate offer and a repo-linked floating offer are not the same product. Compare the spread over repo, not just today's rate.
Prepayment and foreclosure terms
If you plan to close early, a zero-charge floating loan can beat a cheaper fixed-rate one outright.
Balance transfer economics
For an existing loan, weigh the new lender's fee and legal costs against the remaining interest — transfers rarely pay off in the last third of a tenure.
Next: see what the winning loan looks like month by month
Once you've picked the offer, the useful next step is the repayment table for it — the interest-to-principal split each month and the outstanding balance at any point you might sell, refinance or prepay.
The Amortization Schedule tool generates that full table for the exact rate and tenure you settled on, plus a year-wise summary you can keep alongside the sanction letter.
Common mistakes
- Ranking offers on interest rate while ignoring a processing fee that can differ by tens of thousands.
- Comparing loans of different tenures on total cost without equalising the term first.
- Missing bundled credit-life insurance financed into the principal, which inflates both loan and interest.
- Overlooking foreclosure charges when you expect to close the loan early.
- Comparing a fixed-rate offer against a floating one as though they carried the same risk.
- Forgetting that fees are negotiable — the processing fee is the line item lenders most often waive to close a deal.
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Understand every number
Why compare loans at all?
Even a 0.25% rate difference on a ₹50 L / 20-year home loan is worth roughly ₹1.5–2 L in interest. Tenure differences matter even more. Comparing before you sign is the single highest-return financial exercise most borrowers ever do.
Rate isn't everything
A lower rate at a higher processing fee, or a shorter tenure at a higher EMI, can beat or lose to a headline-cheap offer. Compare total repayment and effective cost — not just the advertised rate.
When to consider a balance transfer
Rule of thumb: switch if the new rate is at least 0.50% lower and you have 5+ years of tenure left. Below that, foreclosure fees, MODT, and legal charges usually eat the saving.
Fixed vs floating
Floating home loans in India carry zero prepayment penalty by RBI mandate; fixed rates and car / personal loans do not. Factor that into your comparison — a 'lower' fixed rate can be more expensive after switching.
Understand the math behind this calculator
Frequently asked
Enter two loan scenarios — amount, rate and tenure — and the calculator runs both through the same shared reducing-balance EMI engine that powers every other EMI360 calculator. You get side-by-side EMI, total interest, total repayment, closing date, effective cost, total interest ratio and loan health.
Yes. Each side has its own loan-type picker (Home / Car / Personal / Education) with sensible rate and tenure defaults, so a home loan at 8.5% for 20 years and a personal loan at 12% for 5 years can be compared cleanly.
Yes — that's the classic 'should I switch lender' use case. Click 'Copy A's amount & tenure to B' and just change the rate on Loan B. The interest saved tile shows exactly what a rate reset or balance transfer would gain.
Effective Cost = Total Repayment ÷ Loan Amount, expressed as a percentage. A ₹20 L loan that repays ₹36 L has an effective cost of 180%. It captures the true lifetime cost, not just the headline rate — identical to the metric used on every other EMI360 calculator page.
Total interest as a percentage of the original principal. On a 20-year home loan at 8.5%, interest is typically 110–130% of the principal — meaning you repay more in interest than you borrowed. It's a quick lifetime-cost check that never changes between the standalone calculators and this comparison view.
The exact same composite score used on Home, Car, Personal, Education and Eligibility calculators — affordability, tenure, total interest ratio, interest efficiency and prepayment plan. There is no separate health formula for the comparison page.
Yes. The Comparison Report is a single PDF with both loans side by side — verdict, snapshot table, charts, recommendations on the winning plan and the transparency section — not two separate single-loan PDFs stitched together.
Not automatically. The cheapest total interest is usually the right pick when tenure, prepayment terms and processing fees are similar. If the cheaper option comes with a 4% foreclosure penalty, restrictive prepayment rules or a high processing fee, the more expensive one can be the smarter choice.
Not on this page — the comparison focuses on the pure repayment math so the two columns stay directly comparable. Add processing fee and GST on each product's own calculator (Home / Car / Personal) to see the fully-loaded 'Effective Cost of Borrowing' with charges.
No — you should subtract foreclosure fees and MODT / legal costs from the interest saved before deciding to switch. RBI mandates zero prepayment charges only on floating-rate home loans; fixed, car and personal loans typically charge 2–5% of the outstanding principal.
Yes, but treat the floating rate as its current value. Real-world floating rates reset with the RBI repo rate, so the actual paid interest may be higher or lower than the projection. Compare fixed vs floating at 2–3 rate assumptions before deciding.
No. Everything is computed in your browser. Nothing is uploaded, stored or shared — the same privacy stance as every other EMI360 calculator.