Loan Calculator
Calculate your monthly loan payment (EMI), total interest and full amortization schedule for personal, home or business loans. Free and instant.
Amortization schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $6,300.60 | $4,101.10 | $2,199.50 | $20,898.90 |
| 2 | $6,300.60 | $4,508.15 | $1,792.45 | $16,390.75 |
| 3 | $6,300.60 | $4,955.56 | $1,345.04 | $11,435.19 |
| 4 | $6,300.60 | $5,447.39 | $853.21 | $5,987.80 |
| 5 | $6,300.35 | $5,987.80 | $312.55 | $0.00 |
About the Loan Calculator
Work out what a loan really costs before you sign. Enter the amount, the annual interest rate and the term to see your monthly installment, the total interest you will pay and a month-by-month breakdown of how every payment is split between interest and principal.
How to use it
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate your lender quoted.
- Choose the loan term in years or months.
- Read your monthly payment and total interest, then open the schedule to see each payment.
How the monthly payment is calculated
Banks quote most personal, home and business loans on a reducing balance. Each month, interest is charged on the amount you still owe, and the rest of your installment pays down the balance. To keep every installment the same, lenders use the amortization formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of months.
The schedule this calculator builds follows exactly that rule, month by month, and the final installment is adjusted by a few cents so the balance lands on zero instead of leaving a rounding stub.
Worked example
Borrow 1,000,000 at 12% a year for 5 years. The monthly rate is 1% and there are 60 payments, so the installment is 22,244.45. Over the five years you repay 1,334,666.80, which means the loan costs 334,666.80 in interest — about a third of the amount borrowed.
Shorten the term to 3 years and the installment rises, but total interest falls sharply. Lengthen it to 7 years and the installment drops, but you pay interest for longer. The split bar under the results shows this trade-off at a glance.
Tips before you sign
Compare offers by total repayment, not just the monthly figure: a lower installment over a longer term is usually more expensive overall. Ask whether early repayment is allowed and whether there is a penalty, because paying extra in the first years saves the most interest. Finally, check whether the quoted rate is reducing balance or flat; a flat rate makes the loan look cheaper than it is.
Frequently asked questions
How is the monthly payment (EMI) calculated?
We use the standard reducing-balance formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of months. Interest each month is charged only on the balance you still owe.
Why does most of my early payment go to interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest portion shrinks and more of each installment repays principal.
Does this include insurance or fees?
No. This calculator shows the loan itself. For vehicle loans with down payments, trade-ins and fees, use the Vehicle Loan Calculator.