💳 Loan / EMI Calculator
Monthly payment, total interest, and payment count for fixed-rate loans. Runs privately in your browser.
What you actually repay each month
Every instalment loan works the same way: you borrow an amount, the lender charges a yearly interest rate, and you repay in equal monthly payments until the balance reaches zero. Early in the schedule most of each payment is interest; as the principal shrinks, more of each payment goes toward the amount you actually borrowed. This is called amortisation, and it is why paying off a loan early saves the most money in the first years.
The calculator assumes a fixed rate for the whole term, which is how most personal and auto loans are written. Variable-rate loans can be approximated by running the calculation at today's rate and again at a rate two or three points higher, to see what the payment would look like if rates rise.
The amortisation formula
The monthly payment comes from the standard amortisation formula: M = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). If the rate is 0%, the payment is simply P ÷ n.
Borrowing 15,000 at 9% over four years
Borrow 15,000 at 9% annual interest for 4 years. The monthly rate is 0.75% and there are 48 payments. The formula gives a monthly payment of about 373.28. Over 48 payments you repay roughly 17,917 — about 2,917 of that is interest. Shortening the term to 3 years raises the payment to around 477 but cuts total interest to about 2,170, saving more than 700.
Why the monthly payment misleads
- Comparing loans by monthly payment alone. A longer term lowers the payment but usually raises total interest dramatically — always compare the total cost too.
- Forgetting fees. Origination fees, arrangement fees and insurance are often deducted from what lands in your account, so the effective rate is higher than the headline rate.
- Entering an APR where the calculator expects the nominal rate, or vice versa. For most consumer loans the difference is small, but check which figure your lender quoted.
- Rounding the loan amount down. Enter the exact amount you will borrow, including any financed fees.
Loan questions
Does this calculator include loan fees?
No. It calculates principal and interest only. If your loan has an origination fee, either add it to the loan amount (if the lender finances it) or treat the effective loan as smaller than the nominal one.
What is EMI?
EMI stands for Equated Monthly Instalment — the fixed payment amount common in India, the UK and other markets. It is the same maths as a standard monthly loan payment, so the result applies anywhere.
Can I use this for a mortgage?
Yes, if you know the loan amount. If you are starting from a home price, use the Mortgage Calculator instead — it deducts your down payment first and reminds you that taxes and insurance are separate.
What happens if I pay extra each month?
Extra payments go straight to principal, which shortens the loan and reduces total interest. This calculator shows the contractual payment; to model overpayments, run the numbers with a shorter term and compare totals.
Why does my lender's number differ slightly?
Lenders may use day-count conventions, rounding rules or a payment date offset that shifts results by a few cents. Differences under a dollar per month are normal.
Related finance tools
Tip: double-check inputs before relying on results for important decisions.
How it works
Standard amortizing EMI formula for fixed monthly rates. Results carry no currency symbol — enter any currency and read the output in the same one.
- Good for personal and auto loans
- Excludes fees, insurance, taxes