Loan Calculator: Monthly Payment, EMI and Amortization
This free loan calculator works out the monthly payment for a car loan, personal loan, home loan or mortgage, along with the total interest and an amortization schedule that shows how each payment splits between principal and interest. Add an extra monthly payment to see how much sooner the loan is paid off. In India the same figure is called the EMI.
| Year | Principal | Interest | Balance |
|---|
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Quick answer: A $25,000 loan at 7.5% a year over 5 years costs about $501 a month, with about $5,056 paid in interest. Change any figure above and the payment, interest and schedule update instantly.
How to use the loan calculator
- Enter the loan amount, the yearly interest rate (APR) and the term in years or months.
- Pick your currency. The maths is the same for dollars, rupees, pounds or euros.
- Read the monthly payment, total interest and total paid.
- Add an extra payment to see how many months you save, and tick “Show every month” for a full monthly schedule you can copy into a spreadsheet.
The loan payment (EMI) formula
Lenders use the standard amortization formula: Payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly payments. Each payment first covers that month’s interest on the remaining balance; the rest reduces the principal. That is why early payments are mostly interest and later payments are mostly principal.
Example monthly payments for $10,000
| Rate | 3 years | 5 years | 7 years |
|---|---|---|---|
| 5% | $299.71 | $188.71 | $141.34 |
| 8% | $313.36 | $202.76 | $155.86 |
| 12% | $332.14 | $222.44 | $176.53 |
| 18% | $361.52 | $253.93 | $210.38 |
Ways to pay less interest
- Shorter term: the monthly payment rises, but total interest falls sharply.
- Extra payments: even a small extra amount each month goes straight to principal. Check that your lender has no prepayment penalty.
- Lower rate: compare APRs, which include fees, not just the headline rate.
This calculator gives estimates for fixed-rate loans and does not include fees, insurance or taxes. It is not financial advice; your lender’s figures are final. To see how savings grow instead, try the compound interest calculator, or check percentages with the percentage calculator.
FAQ
What is EMI?
EMI stands for equated monthly instalment, the fixed amount you pay each month. It is the same as the monthly payment shown here.
Does this work for a mortgage?
Yes, for the principal and interest part. Property tax, insurance and PMI are added on top by most lenders.
What if the interest rate is 0%?
The payment is simply the loan amount divided by the number of months.
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