Loan Tenure Calculator

If a bank or NFC gives you a loan, it is repaid with an interest rate levied on it. This repayment is made in monthly equated installments. Due to the difficulty of making a lump sum payment, borrowers have the option of repaying the loan over a pre-determined loan tenure in equal monthly installments or EMI. With a set loan term duration, any borrower can profit from easy, comfortable, and stress-free repayment over a tenure. Furthermore, the monthly payments and the cost of the credit (total interest) are influenced by the payback period. Therefore, determining a reasonable loan period can influence your probability of getting the loan. 

Using a Loan Tenure Calculator from, any potential borrower and applicant can evaluate the loan term that is preferable to their requirements. Continue reading to learn more about the free online calculation tool that can help you plan your loan better.

What is a Loan Tenure Calculator?

You can use a loan tenure calculator to determine the length of time or the number of EMIs needed to repay. Based on your principal amount, the applicable interest rate, and the monthly payment you can afford, compute the loan term easily. Additionally, you can use a loan tenure calculator to determine the length of your loan’s remaining time if you intend to prepay an existing loan partially.

Knowing the duration and the EMI of a loan beforehand can significantly assist in planning your monthly and annual finances better. With effective planning, there will be no chance of falling into the debt trap. The free Loan Tenure Calculator will help you in achieving the same.

Components of the Loan Tenure

Every loan consists of a few elements that make a loan whole as a process. Those components are the loan tenure, rate of interest, principal amount, and monthly payments or EMIs. All these are congruent with each other; to know any individual factor, you require the other three.


  • Loan amount/ principal amount:

The amount a borrower is applying for or the sum of money that a bank or NBFC offers to a borrower is known as the principal or loan amount. The allocation of a loan amount varies from lender to lender. Furthermore, the loan amount has a monumental impact on the loan tenure. 


  • EMI/ Installment:

EMI, or abbreviation for equated monthly installments, is the amount that a borrower has to pay every month to the lending entity over the agreed loan duration. The EMIs, at first, is the sum of a big interest rate and a small principal amount.  


  • Interest rate:

An interest rate is the value of the loan levied by a lender to a borrower for the use of money. Furthermore, it is expressed as a percentage of the principal per period. Additionally, different loans and lenders have various interest rates. Therefore, select the one that is affordable per your requirements.

How Does a Loan Tenure Calculator Work?

Substituting the values of the principal amount, the rate of interest and the EMI in the loan tenure calculator will compute the loan term. You can easily calculate the loan tenure using the following standard EMI formula. 


E = P * r * (1+r)^n/((1+r)^n – 1) Here:,

  • E denotes the monthly installment you will have, i.e., the EMI.
  • P denotes the amount or sum of money that you want to borrow.
  • r refers to the rate of interest applicable but calculated on a monthly basis. You may also calculate it annually. 
  • n refers to the duration of the loan in months. If you choose a term of 4 years, n will be 48.


It’s crucial to realize that there are additional costs associated with borrowing from lenders in addition to interest rates, such as processing and paperwork fees. The processing fee typically ranges between 1% and 3% of the amount being borrowed.

Benefits of the Online Calculator

Apart from helping tool for planning a loan and finances better, the following are some other key advantages of using the loan tenure calculator:

  • The tenure is calculated in seconds, and the results are error-free. 
  • You can use it to determine how long it will take to repay your debt.
  • Simplifies a challenging formula to determine the loan term for various EMI, principal, and rate combinations.
  • You can access it anytime from anywhere, so you won’t have to rush to the bank to understand such calculations.