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💳 Loan Calculator

Calculate your monthly loan payment, total interest, and full amortization schedule. Enter the loan amount, interest rate, and term to instantly see your repayment breakdown.

Loan Payment Formula

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P = Loan Amount r = Monthly Rate (annual ÷ 12) n = Total Months

How to Use This Calculator

  1. 1
    Enter Loan Amount
    Enter the total amount you want to borrow or the outstanding principal balance.
  2. 2
    Enter Interest Rate
    Enter the annual interest rate quoted by your lender. The calculator converts it to a monthly rate automatically.
  3. 3
    Set Loan Term
    Enter the repayment period in years or months. Longer terms lower your monthly payment but increase total interest.
  4. 4
    View Amortization
    See your full payment schedule broken down by month — how much goes to principal vs. interest each period.

Real-World Example

$15,000 car loan at 6% per year for 5 years (60 months):

Monthly rate r = 6% ÷ 12 = 0.5%
n = 5 × 12 = 60 months
Monthly Payment = $289.99/month
Total Interest = $2,999.40
Total Paid = $17,999.40

Frequently Asked Questions

The monthly payment uses the standard amortization formula: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of months. This spreads your payments evenly across the loan term.

An amortization schedule is a complete table of loan payments showing each period's total payment, how much goes toward principal (reducing your debt), how much is interest, and the remaining balance. Early payments are mostly interest; later payments are mostly principal.

A shorter term means higher monthly payments but much less total interest paid. A longer term lowers your monthly payment but significantly increases the total cost of the loan. If you can comfortably afford the higher payment, a shorter term saves money in the long run.

Making extra payments reduces your outstanding principal faster. Since interest is calculated on the remaining balance, a lower balance means less interest accrues. Even one extra payment per year can shave years off your loan and save thousands in interest.

No — this calculator shows the pure principal and interest payment. Real loans may include origination fees, mortgage insurance, property taxes (for home loans), or other charges. Always check your loan's APR (Annual Percentage Rate) which reflects the true annual cost including fees.

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