Loan Calculator
Enter your loan amount, rate, and term to see your exact monthly payment and total cost. Compare multiple interest rates side by side.
Principal vs Interest
| Category | Total principal vs interest |
|---|---|
| Principal | $10,000.00 |
| Interest | $1,600.00 |
Rate comparison
| Rate | Monthly | Total interest | Difference |
|---|---|---|---|
| 4.0% | $184.17 | $1,049.91 | -$549.77 |
| 5.0% | $188.71 | $1,322.74 | -$276.94 |
| 6.0% | $193.33 | $1,599.68 | — |
| 7.0% | $198.01 | $1,880.72 | +$281.04 |
| 8.0% | $202.76 | $2,165.84 | +$566.16 |
Amortization schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $193.33 | $143.33 | $50.00 | $9,856.67 |
| 2 | $193.33 | $144.04 | $49.28 | $9,712.63 |
| 3 | $193.33 | $144.76 | $48.56 | $9,567.86 |
| 4 | $193.33 | $145.49 | $47.84 | $9,422.37 |
| 5 | $193.33 | $146.22 | $47.11 | $9,276.16 |
| 6 | $193.33 | $146.95 | $46.38 | $9,129.21 |
| ⋮ | ||||
| 55 | $193.33 | $187.63 | $5.70 | $952.31 |
| 56 | $193.33 | $188.57 | $4.76 | $763.74 |
| 57 | $193.33 | $189.51 | $3.82 | $574.23 |
| 58 | $193.33 | $190.46 | $2.87 | $383.78 |
| 59 | $193.33 | $191.41 | $1.92 | $192.37 |
| 60 | $193.33 | $192.37 | $0.96 | $0.00 |
How to use Loan Calculator
This loan (EMI) calculator works out the fixed monthly payment for any amortizing loan — personal, auto, student or business — and shows the total interest you will pay over the term. Adjust the amount, interest rate and length to compare offers instantly, then read the year-by-year amortization to see how the balance falls and how much of each payment is interest versus principal. Add extra monthly payments to see how much sooner you could be debt-free.
- Enter the loan amount (principal) you want to borrow.
- Set the annual interest rate offered by the lender.
- Choose the loan term in months or years.
- Optionally add an extra monthly payment to shorten the term.
- Review the monthly EMI, total interest and full amortization schedule.
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How the EMI (monthly payment) is calculated
An Equated Monthly Installment is found with the 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 ÷ 100) and n is the number of monthly payments. Because interest is charged on the outstanding balance, your early payments are mostly interest and later payments are mostly principal — even though the EMI itself stays constant.
Interest rate, term and the cost of borrowing
A longer term lowers the monthly payment but raises the total interest you pay, because the balance is outstanding for longer. A shorter term does the opposite. Even a one-point difference in rate can change the lifetime cost significantly, so always compare offers on total interest — not just the monthly figure. The APR (which folds in fees) is the fairest way to compare two loans.
| Term | Approx. monthly | Approx. total interest |
|---|---|---|
| 3 years | $627 | $2,560 |
| 5 years | $406 | $4,332 |
| 7 years | $312 | $6,200 |
Paying off a loan faster
Any payment above the scheduled EMI reduces principal directly, so future interest is charged on a smaller balance. Rounding the payment up or adding a fixed extra amount each month can cut months or years off the term. Check your agreement for prepayment penalties before committing to an aggressive payoff plan.
Worked examples
Personal loan
Inputs: $20,000 · 9% · 5 yr
Result: ~$415/mo · ~$4,910 interest
With $100 extra/mo
Inputs: same loan + $100 extra
Result: Pay off ~11 months early
Glossary
- EMI
- Equated Monthly Installment — the fixed amount you pay each month covering both principal and interest.
- Principal
- The original amount borrowed, before interest.
- APR
- Annual percentage rate — the yearly cost of a loan including fees, used to compare offers.
- Amortization
- The process of paying off a loan in equal installments split between principal and interest.
- Prepayment
- Paying more than the scheduled amount to reduce the balance and total interest.
Related reading
Frequently Asked Questions
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Why use Loan Calculator?
- Transparent formulas so you understand every calculation
- Supports multiple currencies and regional tax rules
- Saves you from spreadsheet errors with validated inputs
- Shareable results for discussions with advisors or partners
Common use cases
- Calculate how long to pay off a credit card balance
- Model different mortgage scenarios before house hunting
- Forecast investment growth with compound interest
- Break even analysis for a new product or service
- Compare net salary after tax across different countries
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