Loan / EMI Calculator
Compute monthly payments, total interest and amortisation for a loan.
Overview
The Loan / EMI Calculator computes the equated monthly instalment for a fixed-rate loan, breaks down the total interest you'll pay and produces a full amortisation schedule month by month. Enter the principal, interest rate and term and you see the monthly payment, total cost and how each instalment splits between principal and interest.
It is built for borrowers comparing mortgage offers, car buyers comparing financing options, students sizing student loans and financial advisors quoting payments to clients. Seeing the early instalments mostly cover interest is an eye-opener for first-time borrowers.
How it works
For a loan of principal P, monthly rate r (annual rate divided by 12) and n total monthly payments, the EMI is EMI = P * r * (1 + r)^n / ((1 + r)^n - 1). When r = 0 the EMI collapses to P / n.
Each month the interest portion is r * outstanding_balance, the principal portion is EMI - interest and the balance drops by the principal portion. Repeat for n months — the final balance hits zero. Total interest is EMI * n - P.
Examples
$200,000 mortgage, 6% APR, 30 years
→ EMI ≈ $1,199, total interest ≈ $231,676
$25,000 car loan, 5% APR, 5 years
→ EMI ≈ $472, total interest ≈ $3,307
$10,000 personal loan, 12% APR, 3 years
→ EMI ≈ $332, total interest ≈ $1,957
FAQ
Is the APR the same as the interest rate I see on the EMI?
The APR is the annual rate the calculator divides by 12 to get the monthly rate. If your lender quotes an APR that includes fees, the effective rate is slightly higher.
Why does early-payment interest dominate?
Because the outstanding balance is largest at the start. As you chip away at principal, the interest portion of each EMI shrinks.
Can I model extra principal payments?
Not directly in this view. Extra payments reduce the balance faster, lowering total interest and shortening the term — try modelling with a shorter term to estimate the impact.
What about variable-rate loans?
This calculator assumes a fixed rate throughout. For ARM mortgages, recompute the EMI when the rate resets using the new outstanding balance and remaining term.
Does it include fees, taxes or insurance?
No — just principal and interest. PITI calculators add property tax and insurance on top.