Loan / EMI Calculator
Estimate your monthly payment and total interest on any loan.
How loan payments are calculated
This calculator uses the standard amortization formula to estimate a fixed monthly payment: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments. This applies to most personal loans, auto loans, and fixed-rate mortgages.
What affects your monthly payment
- Loan amount — larger loans mean larger payments
- Interest rate — higher rates increase both the payment and total interest paid
- Term length — longer terms lower the monthly payment but increase total interest paid over the life of the loan
This tool provides an estimate for planning purposes only and does not include fees, taxes or insurance that a lender may add.
Frequently asked questions
How is the monthly payment formula derived?
The calculator uses the standard amortization formula: payment = P x r x (1+r)^n / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This produces a fixed monthly payment that fully pays off the loan by the end of its term.
Why do I pay so much more interest at the start of the loan?
Each fixed payment is split between interest and principal, and interest is charged on the remaining balance - which is highest at the start. As the balance shrinks over time, more of each payment goes toward principal instead of interest.
What happens if I enter a 0% interest rate?
With a 0% rate, the calculator simply divides the loan amount evenly across the number of payments, since there's no interest to add - useful for interest-free installment plans.