See how much a loan costs each month and in total before you sign. Enter the amount, the yearly interest rate and how many years you have to repay — this loan calculator (also called an EMI calculator) shows your fixed monthly payment, the total you will pay and the interest on top.
About this loan calculator
This free loan calculator answers the question most people care about: what will the monthly payment be? Enter how much you want to borrow, the annual interest rate the lender quoted, and how many years you have to pay it back. It instantly shows your fixed monthly instalment (the EMI), the total amount you will repay over the life of the loan, and how much of that is interest. It works for car loans, mortgages, student loans and personal loans. The maths runs entirely in your browser, so none of your figures are sent anywhere. Results are estimates — actual offers may include fees, insurance or taxes.
Frequently asked questions
- How is the monthly payment worked out?
- Using the standard amortising formula — your loan plus interest spread evenly across every month of the term.
- What does EMI mean?
- Equated Monthly Instalment — the fixed amount you pay each month. A loan calculator and an EMI calculator are the same thing.
- Are fees and insurance included?
- No — only the amount, rate and term. Treat the result as an estimate before fees.
Understanding Amortization
Most standard loans use an amortization schedule to ensure the debt is fully paid off by the end of the term. The formula calculates a fixed monthly payment that covers both the accrued interest for that month and a portion of the principal balance. As you pay down the principal, the interest portion of your payment decreases while the principal portion increases. This process ensures that your payment remains consistent throughout the life of the loan.
The mathematical foundation for this calculation involves the principal amount, the monthly interest rate, and the total number of payments. You arrive at the monthly interest rate by dividing the annual percentage rate by twelve. The formula then uses these variables to determine the constant payment required to reach a zero balance exactly when the term expires. This structure is the industry standard for mortgages, auto loans, and many personal credit products.
The most common mistake borrowers make is confusing the interest rate with the total cost of credit. Many people overlook that a longer loan term significantly increases the total interest paid, even if it lowers the monthly obligation. Additionally, failing to account for external costs like origination fees, private mortgage insurance, or property taxes can lead to an inaccurate budget. Always remember that the base payment calculated here covers only the loan principal and interest, not the extra costs that lenders frequently add to your monthly statement.