Loan Calculator
Work out your monthly loan payment (EMI), total interest and total repayment in seconds.
How to use the Loan Calculator
- Enter the total amount you want to borrow.
- Enter the annual interest rate offered by your lender.
- Enter the loan term in years.
- Your monthly payment updates instantly, along with total interest and total cost.
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where r = monthly rate, n = number of months
About the Loan Calculator
A loan calculator shows you the real cost of borrowing before you sign anything. Enter the amount, the interest rate and the term, and it uses the standard amortisation formula that banks use to spread a loan into equal monthly instalments (EMIs), then shows the monthly payment, the total interest and the total amount you will repay over the life of the loan.
Each monthly payment covers both interest and principal, but not evenly. Early on, most of it is interest because the balance is still high; as the balance falls, more of each payment chips away at the principal. That is why the total interest on a long loan can be startlingly large — and why paying a little extra early, or choosing a shorter term, saves so much more than it seems it should. Seeing the total repayment next to the amount borrowed makes that cost concrete.
The real value is comparison. A difference of even half a percent in rate, or a few years in term, can change what you repay by thousands, so it pays to run a few scenarios before committing. For a home loan with taxes and insurance, use the mortgage calculator; to see the full payment-by-payment breakdown, use the amortization schedule; and for a vehicle, the car loan calculator.
Frequently asked questions
What is EMI?
EMI stands for Equated Monthly Instalment — a fixed payment you make each month that combines interest and principal so the loan is fully paid off by the end of the term.
Does a longer term lower my payment?
Yes. A longer term reduces the monthly payment but increases the total interest you pay, because you owe money for longer.
Is this calculator accurate for any currency?
Yes. The math is the same in any currency — just enter your amount and rate. The result is in the same currency you entered.
Guides & articles about this tool
Simple Interest Formula Explained with Examples
The simple interest formula is I = P x r x t, where t is in years. Here’s how it works, what it’s for, and where people usually go wrong.
First-Time Home Buyer: Understanding Your Mortgage Payment
Let’s go through your mortgage payment in plain terms so you don’t stare at a bank statement wondering where half your money’s gone. This explains what’s…
How Loan EMI Is Calculated (With a Worked Example)
This is how EMI works: each month you make a single fixed payment covering both the interest owed and part of the loan itself. Below we break down the for…