Loan & EMI Calculator
Know your monthly payment before you borrow.
The Loan & EMI Calculator turns three simple inputs into a clear repayment picture. Enter the loan amount, the annual interest rate, and the term in months, and it works out your fixed monthly payment along with the total you will repay and how much of that is interest. It also builds a full amortization schedule so you can see how each payment splits between principal and interest over time.
This tool helps whenever you are comparing offers or planning a budget. Use it to test how a shorter term or a lower rate changes your monthly payment, to check whether a car, home, or personal loan fits your income, or to understand the true cost of borrowing before you sign. Everything runs in your browser, so your numbers stay on your device and results update instantly as you adjust the inputs.
Monthly payment
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Formula
EMI = P·r·(1+r)^n / ((1+r)^n - 1)How to use the loan & emi calculator
- Enter the loan amount, which is the principal you plan to borrow.
- Type the annual interest rate as a percentage, such as 6.5 for a 6.5% loan.
- Set the term in months, for example 60 for a five-year loan.
- Read the monthly payment, total paid, and total interest shown in the results.
- Scroll through the amortization schedule to see how principal and interest shift each month.
- Adjust any input to compare scenarios and find a payment that fits your budget.
Worked example
Suppose you borrow 20,000 at a 6% annual rate over 60 months. The monthly rate is 0.5%, and the formula gives a fixed payment of about 386.66 per month. Over the full term you repay roughly 23,199 in total, of which about 3,199 is interest. In the first payment, close to 100 goes toward interest and the rest reduces the principal, but by the final months almost all of each payment reduces the balance.
Common mistakes to avoid
- Entering the monthly rate in the annual rate field, which drastically understates your real cost.
- Mixing up the term unit and typing years where the tool expects months.
- Forgetting that taxes, insurance, and fees are not part of the calculated EMI.
- Assuming the interest portion stays fixed, when it actually shrinks with every payment.
- Comparing loans by monthly payment alone instead of also checking total interest.
Frequently asked questions
What is EMI?
Equated Monthly Installment — a fixed payment covering both principal and interest over the loan term.
Does a longer term lower my payment?
Yes, but you pay more total interest over the life of the loan.
How is the amortization schedule calculated?
Each month, interest is charged on the remaining balance at the monthly rate, and the rest of your fixed payment reduces the principal. As the balance falls, the interest share of each payment drops and the principal share grows, until the loan reaches zero at the end of the term.
What happens if I enter a zero interest rate?
With a 0% rate the tool simply divides the loan amount by the number of months, so every payment is equal and none of it goes to interest. This is useful for checking promotional financing or interest-free installment plans.
Does this calculator account for extra or early payments?
No, it assumes you make the same scheduled payment every month for the full term. Paying extra reduces your balance faster and lowers total interest, so treat the results as a baseline. To explore how savings grow instead, try the <a href="/tools/compound-interest-calculator/">compound interest calculator</a>.