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Loan Calculator (Monthly Payment / EMI)

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Use this calculator to work out the fixed monthly payment on a loan — often called an EMI (Equated Monthly Installment) — along with the total interest you'll pay over the life of the loan. It works for mortgages, auto loans, personal loans, and student loans alike, as long as the loan uses a fixed rate and equal monthly payments.

Loan Calculator

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Monthly payment
$391.32
Total interest
$3,479.38
Total repaid
$23,479.38
Assumes a fixed rate and equal monthly payments. Estimate only — confirm terms with your lender.

The monthly payment formula

Fixed-rate loans with equal monthly payments use the standard amortization formula:

M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

Where M is the monthly payment, P is the loan amount (principal), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments.

Example

A $20,000 loan at 6.5% annual interest over 5 years (60 months):
r = 6.5 ÷ 12 ÷ 100 = 0.005417
n = 60
M = 20000 × [0.005417 × (1.005417)⁶⁰] ÷ [(1.005417)⁶⁰ − 1] ≈ $391.32/month
Total repaid ≈ $23,479.38, so total interest ≈ $3,479.38.

Step-by-step guide

  1. Enter the loan amount — the amount you're borrowing before any interest.
  2. Enter the annual interest rate as a percentage, e.g. 6.5 for 6.5%.
  3. Enter the loan term and choose years or months.
  4. Read your results: monthly payment, total interest, and total amount repaid update instantly.

Common mistakes

Using the monthly rate where the annual rate is asked for, or forgetting to divide the annual rate by 12 before applying it monthly.
Forgetting that this figure is principal and interest only — property taxes, insurance, and lender fees can add to the real monthly cost of a mortgage.

Frequently asked questions

What does EMI stand for?

EMI stands for Equated Monthly Installment — a fixed payment made every month that covers both interest and a portion of the principal, so the loan is fully paid off by the end of its term.

Why is most of my early payment interest, not principal?

Interest is calculated on the remaining balance each month. Early on, the balance is highest, so more of each payment goes to interest. As the balance shrinks, more of each payment goes toward principal — this pattern is called amortization.

Does this include taxes, insurance, or fees?

No — this is principal and interest only. For a mortgage, ask your lender for a full estimate that includes property tax, homeowners insurance, and any required mortgage insurance.

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