How is the monthly payment calculated?

Monthly payment is calculated using the standard loan amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal (loan amount), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. This formula ensures that each payment covers exactly the interest accrued that month plus a portion of the principal, so the loan is paid off to zero at the end of the term.

What is an amortization schedule?

An amortization schedule shows how each monthly payment is split between interest and principal over the life of the loan. In the early months, most of your payment goes toward interest because the outstanding balance is high. As you pay down principal, the interest portion shrinks and the principal portion grows. This is why paying extra early in a loan has a disproportionately large impact on total interest paid.

How does the interest rate affect my payment?

Even a 1% difference in interest rate has a significant impact over the life of a loan. For a $20,000 loan over 5 years, the difference between 6% and 7% APR is about $10 per month — but $600 in total interest over the full term. On a $300,000 mortgage, that same 1% difference translates to roughly $60,000 in additional interest. Always compare APRs, not just monthly payments, when evaluating loan offers.

Does this calculator include fees?

No — this calculator uses only the stated interest rate without accounting for origination fees, prepayment penalties, insurance, or other charges that may be bundled into a loan's APR. For a complete cost comparison, ask lenders for the full APR (Annual Percentage Rate), which legally must include all required fees. The APR will always be higher than the nominal interest rate for any loan with fees.

Loan Calculator — Free EMI & Amortization Calculator

Free Online Loan EMI Calculator

Calculate your monthly loan payment and total interest cost instantly — for personal loans, auto loans, student loans, and any fixed-rate installment loan. Our free loan calculator uses the standard amortization formula to show you exactly what you'll pay each month and how much of each payment goes toward principal versus interest. Enter the loan amount, annual interest rate, and loan term, and the calculator will display your monthly payment, total amount paid over the life of the loan, and total interest charged. Understanding the true cost of borrowing helps you compare loan offers, determine affordability, and make smarter financial decisions. For example, a seemingly small difference in interest rate — say 6% vs 8% on a $25,000 auto loan — can add up to thousands of dollars over the loan term. All calculations use standard financial formulas and happen instantly in your browser with no data shared with any third party.

How to Use

Enter your loan amount using the slider or type a specific value.
Set the annual interest rate for your loan.
Choose the loan tenure in years or months.
View your monthly EMI, total interest, and total payment instantly.
Expand the amortization schedule to see a month-by-month breakdown of principal vs. interest.

FAQ

How is the monthly payment calculated?: Monthly payment is calculated using the standard loan amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal (loan amount), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. This formula ensures that each payment covers exactly the interest accrued that month plus a portion of the principal, so the loan is paid off to zero at the end of the term.
What is an amortization schedule?: An amortization schedule shows how each monthly payment is split between interest and principal over the life of the loan. In the early months, most of your payment goes toward interest because the outstanding balance is high. As you pay down principal, the interest portion shrinks and the principal portion grows. This is why paying extra early in a loan has a disproportionately large impact on total interest paid.
How does the interest rate affect my payment?: Even a 1% difference in interest rate has a significant impact over the life of a loan. For a $20,000 loan over 5 years, the difference between 6% and 7% APR is about $10 per month — but $600 in total interest over the full term. On a $300,000 mortgage, that same 1% difference translates to roughly $60,000 in additional interest. Always compare APRs, not just monthly payments, when evaluating loan offers.
Does this calculator include fees?: No — this calculator uses only the stated interest rate without accounting for origination fees, prepayment penalties, insurance, or other charges that may be bundled into a loan's APR. For a complete cost comparison, ask lenders for the full APR (Annual Percentage Rate), which legally must include all required fees. The APR will always be higher than the nominal interest rate for any loan with fees.