Loan EMI Calculator

This loan EMI calculator works out the monthly payment, total interest and a full amortisation schedule from the amount, rate and term. A loan calculator answers one question — what will I pay each month? — but the useful answer needs three: the monthly instalment, the total interest over the life of the loan, and how the balance actually falls. This tool gives all of them from the amount, the annual rate and the term, with a year-by-year amortisation schedule underneath.

The formula

The fixed monthly payment is

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

where P is the amount borrowed, r the monthly rate (annual rate ÷ 12) and n the number of monthly payments (years × 12). At 0% it collapses to P ÷ n.

Reading the schedule

Each yearly row shows the opening balance, the interest paid that year, the principal repaid and the closing balance. Add up the interest column and you get the true cost of borrowing. Shortening the term or shaving the rate both cut that total sharply, which is why comparing terms here before you sign is worthwhile.

Worked example

Borrow 250,000 at 6% annual interest for 20 years:

r = 6% ÷ 12 = 0.005 per month
n = 20 × 12 = 240 payments
(1 + r)^n = 1.005^240 ≈ 3.3102
EMI = 250,000 × 0.005 × 3.3102 ÷ (3.3102 − 1) ≈ 1,791.08

Total repaid is 1,791.08 × 240 = 429,859, so the interest costs 179,859 — roughly 72% of the amount actually borrowed. Stretch the same loan to 30 years and the payment falls to about 1,498.88 while the interest rises to about 289,597. That trade, a smaller monthly figure for a much larger total, is the most important thing a loan calculator reveals, and it is invisible in an advert that quotes only the payment.

What each input means

• Loan amount — the principal you actually receive, not the purchase price. Subtract your deposit first, because interest is charged only on what you borrow.
• Annual interest rate — the nominal yearly rate. The tool divides it by 12 itself, so enter 6 for 6%, never 0.06.
• Term in years — how long you repay over. Every extra year lowers the payment and raises the total interest.

If a lender quotes both a rate and an APR, use the rate for the payment. The APR folds in fees and is the better measure of the whole deal's cost, but feeding it into the payment formula counts those fees twice.

What this does not model

The schedule assumes a fixed rate, a fixed payment and no extra repayments. Real loans diverge in three ways. An adjustable rate changes r partway through, which resets every remaining payment. Early repayments shorten n and cut the interest sharply, because interest accrues on the outstanding balance rather than the original amount. Some products capitalise unpaid interest, so the balance grows instead of falling.

For a variable-rate product, re-run the calculation at each new rate instead of trusting the original schedule. To see what a lump repayment is worth, reduce the amount borrowed and read the two schedules side by side. Compound Interest Calculator runs the same exponential maths in the opposite direction, which is why clearing a 6% loan is a guaranteed 6% return.

Private and precise

Every figure is worked out in your browser with standard financial formulas. Nothing you type is uploaded, stored or sent anywhere.