How is the monthly payment calculated?

It uses the standard amortizing loan formula EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where r is the monthly rate and n the number of months. The payment stays constant for the whole term while its composition gradually shifts from mostly interest to mostly principal.

Should I enter the interest rate or the APR?

The nominal annual interest rate reproduces your lender’s payment schedule most exactly. The APR also folds in origination fees and other mandatory charges, so entering it gives a slightly higher, more conservative estimate — which is actually the better number for comparing loans from different lenders.

What’s the difference between a reducing-balance rate and a flat rate?

This tool assumes a reducing-balance rate, where interest accrues only on what you still owe. A flat rate charges interest on the original principal for the entire term: on a 5-year loan, a 7.5% flat rate costs about the same as a 13.3% reducing rate — roughly 1.8 times higher. Never type a flat rate in directly; ask the lender for the equivalent APR.

Why doesn’t the monthly payment × months exactly equal the total paid?

The totals are computed from the exact, unrounded payment and only rounded to cents at the end. In the example above, $400.76 × 60 is $24,045.60, while the true total is $24,045.54. Real lenders handle the same drift by adjusting the final installment by a few cents.

How do I pay less interest overall?

Three levers: borrow less, get a lower rate, or shorten the term. The term is the one people underestimate — moving the $20,000 example from 5 years to 3 raises the payment by about $221 a month but saves $1,649.06 in interest.

Does it handle 0% interest loans?

Yes. At 0% the formula reduces to principal ÷ months, so the payment is a straight split and total interest is $0. That is handy for promotional financing and interest-free installment plans.

No — the calculation runs entirely in your browser and nothing you enter leaves your device.

Loan / EMI Calculator

Calculate your monthly loan payment (EMI), total interest and payoff for any loan amount, rate and term.

Runs in your browser — files never leave your device

Loan amount$Interest rate%Termyears

Monthly payment

$400.76

Total interest

$4,045.54

Total paid

$24,045.54

How it works

This calculator works out the fixed monthly payment — often called an EMI (equated monthly installment) — for any amortizing loan: car loans, personal loans, student loans, or anything else repaid in equal monthly installments. Enter the amount borrowed, the annual interest rate, and the term in years, and it returns the monthly payment along with the total interest and the total amount you will hand over across the whole term.

The math is the standard amortization formula: EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments (years × 12). Each payment is identical, but its composition shifts over time: early payments mostly cover interest on the large outstanding balance, and as the balance shrinks an ever-larger share goes to repaying principal. A 0% loan is handled as simply principal ÷ months.

A fully worked example: borrow $20,000 at 7.5% for 5 years. The monthly rate is 0.075 ÷ 12 = 0.00625 and n = 60, so (1.00625)⁶⁰ ≈ 1.4533. The payment is 20,000 × 0.00625 × 1.4533 ÷ (1.4533 − 1) ≈ $400.76 per month. Over 60 payments that totals $24,045.54, of which $4,045.54 is interest. Shorten the same loan to 3 years and the payment rises to $622.12, but total interest falls to $2,396.48 — a saving of $1,649.06.

Two things to watch when reading the results. Enter the reducing-balance (amortizing) rate your lender quotes, not a “flat rate”: a flat rate charges interest on the original principal for the entire term, so a 7.5% flat loan costs far more than a 7.5% amortizing one. And note that a lender’s APR additionally includes origination fees, so a payment computed from the APR slightly overstates pure interest but is the fairer basis for comparing offers. The tool models principal and interest only — insurance, processing fees, and late charges come on top.

Need country-specific currency and examples? Try the United States, United Kingdom, Canada, Australia versions.

Frequently asked questions

How is the monthly payment calculated?: It uses the standard amortizing loan formula EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where r is the monthly rate and n the number of months. The payment stays constant for the whole term while its composition gradually shifts from mostly interest to mostly principal.
Should I enter the interest rate or the APR?: The nominal annual interest rate reproduces your lender’s payment schedule most exactly. The APR also folds in origination fees and other mandatory charges, so entering it gives a slightly higher, more conservative estimate — which is actually the better number for comparing loans from different lenders.
What’s the difference between a reducing-balance rate and a flat rate?: This tool assumes a reducing-balance rate, where interest accrues only on what you still owe. A flat rate charges interest on the original principal for the entire term: on a 5-year loan, a 7.5% flat rate costs about the same as a 13.3% reducing rate — roughly 1.8 times higher. Never type a flat rate in directly; ask the lender for the equivalent APR.
Why doesn’t the monthly payment × months exactly equal the total paid?: The totals are computed from the exact, unrounded payment and only rounded to cents at the end. In the example above, $400.76 × 60 is $24,045.60, while the true total is $24,045.54. Real lenders handle the same drift by adjusting the final installment by a few cents.
How do I pay less interest overall?: Three levers: borrow less, get a lower rate, or shorten the term. The term is the one people underestimate — moving the $20,000 example from 5 years to 3 raises the payment by about $221 a month but saves $1,649.06 in interest.
Does it handle 0% interest loans?: Yes. At 0% the formula reduces to principal ÷ months, so the payment is a straight split and total interest is $0. That is handy for promotional financing and interest-free installment plans.
Is my data uploaded?: No — the calculation runs entirely in your browser and nothing you enter leaves your device.

Loan / EMI Calculator

How it works

Frequently asked questions

Related tools