Loan & EMI Calculator

Work out the fixed monthly payment (EMI) on any personal, student or business loan, and see exactly how much of it is interest.

Quick answer

A loan calculator finds your fixed monthly payment (EMI) from the loan amount, interest rate and term using the amortization formula. For example, $200,000 at 6% over 30 years costs $1,199.10 a month. Longer terms lower the payment but raise total interest, so compare both numbers before you borrow.

$
%
yrs
Monthly payment
$512.91
Total interest
$5,775
Total paid
$30,775
Borrowing $25,000 at 8.5% for 5 years means a fixed payment of $512.91 a month. Over the life of the loan you pay $30,775 in total — $5,775 of that is interest, which is 23% on top of what you borrowed. Early payments are mostly interest; later ones mostly pay down the balance.

Key takeaways

  • Your payment depends on three inputs: amount, rate and term.
  • Early payments are mostly interest; later ones mostly principal.
  • Extra payments go to principal and cut total interest.
Amortization — Repaying a loan in equal instalments that each cover that month's interest plus part of the balance.

How the loan calculator works

Loans with a fixed rate are repaid in equal monthly instalments. Each payment first covers that month's interest (balance × monthly rate); the rest reduces the balance. Because the balance falls, the interest share shrinks and the principal share grows over time — this is called amortization.

Formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) P = loan amount, r = annual rate ÷ 12, n = number of monthly payments

Standard formula. Further reading: Investopedia – Amortization · CFPB – Credit cards

Worked example

Borrow $200,000 at 6% for 30 years: r = 0.005, n = 360. EMI = 200,000 × 0.005 × 1.005^360 ÷ (1.005^360 − 1) = $1,199.10 per month, or $231,676 of interest over the term.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

What is EMI?

EMI stands for Equated Monthly Instalment — the fixed amount you pay every month until a loan is repaid. It combines interest and principal.

Does a longer term lower my payment?

Yes, a longer term lowers the monthly payment but increases total interest, because you owe the balance for longer.

Is APR the same as interest rate?

Not exactly. APR includes certain fees, so it is usually slightly higher than the nominal rate. For comparing loans, use APR.

What happens if the rate is 0%?

The payment is simply the loan amount divided by the number of months, with no interest.

Can I pay off a loan early?

Usually yes. Extra payments go straight to principal and reduce total interest, but check your lender for prepayment penalties.

Embed this calculator

Add this free calculator to your website or blog. Copy the code below:

Need a branded, white-label version for your business? Contact us.

Remove branding → Pro. Your colours, no "Powered by" link, from $7.50/mo.See plans

Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated