No. 5 of 19

Loan and EMI calculator

See what a fixed-rate loan really costs before you sign. Enter the amount, the yearly interest rate and the duration to get the equal monthly installment and the interest paid over the full term.

Monthly payment–
Total interest–
Total repayment–

First 12 months

First 12 months
MonthPaymentPrincipalInterestBalance

Key: / jumps to the first field

Results are for information only.

How to use it

  1. Enter the loan amount in any currency.
  2. Enter the annual interest rate and the term in years or months.
  3. Review the monthly payment, total interest and the first-year schedule.

How it works

This is a standard fixed-rate amortizing loan: the same payment every month, with each payment covering that month's interest first and the rest going to the balance. The yearly rate is divided by 12 to get the monthly rate r, and n is the number of monthly payments.

M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

Interest for a month is the remaining balance × r. Early on, most of the payment is interest. By the last few months it is almost all principal. At 0% the payment is just P ÷ n.

Worked example

Borrow 20,000 at 7% a year for 5 years. r = 0.07 ÷ 12 = 0.005833 and n = 60, so the payment is 396.02 a month. Month 1: interest 20,000 × 0.005833 = 116.67, principal 279.36, balance 19,720.64. Month 60: interest 2.30, principal 393.73, balance 0. Over the whole loan you pay 23,761.44, of which 3,761.44 is interest.

Assumptions and limits

  • Not included: arrangement or origination fees, broker fees, payment-protection or life insurance, property taxes and homeowners insurance held in escrow, and any taxes on interest. Compare the lender's APR or official cost-of-credit figure, which folds most fees in.
  • Fixed rate only. Variable, adjustable-rate or teaser-rate loans will change once the rate resets.
  • Interest is calculated monthly on the balance. Some lenders use daily interest or a different day count, which shifts the result by a few cents to a few dollars.
  • No early repayments, payment holidays or balloon payments are modeled.

Frequently asked questions

What does EMI mean?

Equated monthly installment: the same payment every month that covers both interest and principal until the loan is repaid.

Which formula is used?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount, r the monthly rate and n the number of months.

Does this include fees or insurance?

No. Lenders may add arrangement fees, insurance or taxes, so treat the result as an estimate and compare with the official offer.