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Loan & EMI Calculator
See your monthly payment and exactly how much interest a loan will cost you.
Please enter a loan amount, rate, and term.
| Principal | |
| Total interest | |
| Total paid over term | |
| Number of payments |
How to use the loan calculator
Enter three things: how much you want to borrow, the annual interest rate the lender quoted, and the loan term in years. Pick your currency and press Calculate payment. The big figure is your fixed monthly payment — often called the EMI. Underneath, you will see the total interest you will pay, the total amount you will hand over across the whole term, and how many payments that involves.
The tool works for any fixed-rate installment loan: a car loan, a personal loan, a student loan, or a mortgage. It assumes a constant interest rate and equal monthly payments, which is how the vast majority of loans are structured.
What EMI means and how it is calculated
EMI stands for Equated Monthly Installment — a fixed sum you pay every month that stays the same from the first payment to the last. Each payment is part interest and part principal. Early on, most of it is interest; near the end, most of it is principal. That gradual shift is called amortization.
The monthly payment comes from a single formula that has been used by lenders for generations:
EMI = P × r × (1 + r)n ÷ [ (1 + r)n − 1 ]
Here P is the principal (the amount borrowed), r is the monthly interest rate (the annual rate divided by 12, then by 100), and n is the total number of monthly payments (years × 12). The calculator does this arithmetic instantly and precisely.
Worked example
Borrow $25,000 at 7.5% annual interest over 5 years. The monthly rate is 7.5 ÷ 12 ÷ 100 = 0.00625, and there are 60 payments. Running the formula gives a monthly payment of about $501. Over 60 months you pay roughly $30,060 in total — meaning about $5,060 of that is interest. Seeing that interest figure spelled out is often the moment a loan's real cost sinks in.
Why the total interest matters more than the monthly payment
Lenders love to advertise a low monthly payment, because a small number feels affordable. But a low monthly payment is often achieved by stretching the term, and a longer term quietly piles on interest. The same $25,000 at 7.5% over 7 years instead of 5 drops the monthly payment to around $384 — but the total interest jumps to roughly $7,270. You pay less each month and far more overall. Always compare loans on total cost, not just the monthly figure.
Frequently asked questions
What is EMI?
EMI stands for Equated Monthly Installment — the fixed amount you pay each month, combining interest and principal so the loan is fully paid off by the end of the term.
How is the monthly payment calculated?
It uses the standard amortization formula: P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is principal, r is the monthly rate, and n is the number of payments.
Does a longer loan term cost more?
Usually yes. A longer term lowers each monthly payment but adds more months of interest, so you typically pay more in total.
Is the interest rate annual or monthly?
Enter the annual rate. The calculator converts it to a monthly rate internally by dividing by twelve.