Method, example and interpretation · Revised 16 October 2026
Compare offers on an equal basis
A lower monthly payment can hide a much longer repayment period. Use two scenarios to separate the effect of principal, rate and term. The highlighted outcome compares modelled total interest, not every feature of a lender’s offer.
Start with one changing variable
Enter the same loan amount in both scenarios, then change only rate to compare price or only tenure to compare affordability. If principal differs, an apparent interest saving can simply reflect borrowing less. The difference cards show EMI, interest and total-payment differences separately.
Add costs that this tool excludes
Processing fees, compulsory insurance, valuation charges, switching costs and foreclosure conditions can change the better choice. A nominal interest-rate comparison does not replace the lender’s all-in annual percentage rate. Floating rates can also move after the quote date.
Share a reproducible scenario
The share link contains both sets of amounts, rates and tenures. Anyone with the link can read those values, so avoid including private identifiers in scenario labels. The PDF captures the visible comparison; keep the lender quotation and repayment terms as the authoritative documents.
Worked example
₹50 lakh at 8.5% for 15 years versus the same loan for 20 years.
15-year EMI ₹49,237; 20-year EMI ₹43,391.
The longer loan lowers the monthly commitment but increases the time interest accrues.
Questions about this tool
Does the highlighted winner include fees?
No. It compares the interest calculated from the entered amount, rate and term. Add fees and contractual differences separately.