Loan Calculator (Monthly Payment / EMI)
Enter the amount you want to borrow, the interest rate and the term to see your monthly payment, the total interest you’ll pay, and how the balance goes down each year.
Your result appears here.
By Shah Rukh, software developer · Last updated:
How the monthly payment is calculated
Payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
where P is the loan amount, r is the monthly interest rate (the yearly rate ÷ 12 ÷ 100) and n is the number of monthly payments. In India and Pakistan this is called the EMI (equated monthly instalment).
Example: $25,000 at 7.5% for 5 years: r = 0.00625 and n = 60, so the payment is about $500.95 a month. Over 60 payments you repay $30,057, so the interest costs about $5,057.
How to pay less interest
- Choose a shorter term. The monthly payment is higher, but total interest drops a lot.
- Pay extra when you can. Extra payments go straight to the principal, so less interest builds up.
- Compare the APR, not just the rate. APR includes fees, so it shows the true cost of the loan.
- Improve your credit score before applying, since it usually gets you a lower rate.
Saving instead of borrowing? See how money grows with the compound interest calculator.
Frequently asked questions
What is EMI?
Equated monthly instalment: the fixed amount you pay every month until the loan is repaid, covering both interest and principal.
Why do early payments go mostly to interest?
Interest is charged on the remaining balance, which is highest at the start. As the balance falls, more of each payment reduces the principal.
Does this include taxes, insurance or fees?
No. It shows principal and interest only. Mortgages often add property tax and insurance to the monthly bill.
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