The loan calculator shows what a loan will really cost you each month and over its whole life. Enter the amount, the yearly interest rate and the term, and you get the monthly payment (often called EMI, or equated monthly instalment), the total interest and a year-by-year breakdown of how much of each payment goes to interest and how much reduces the balance.
How to use it
- Enter the amount you plan to borrow.
- Enter the annual interest rate quoted by the lender (APR or nominal rate).
- Enter the term in years, for example 5 for a car loan or 30 for a mortgage.
- Click “Calculate payment” and open the schedule to see each year.
The EMI formula
Here P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. For a 25,000 loan at 7.5% over 5 years, r = 0.00625 and n = 60, giving a payment of about 500.95 a month and roughly 5,057 in total interest.
Ways to pay less interest
- Shorten the term. Monthly payments go up, but total interest drops sharply.
- Make extra payments. Early in a loan most of each payment is interest, so paying extra toward the balance then has the biggest effect. Check that your lender does not charge prepayment fees.
- Compare rates. Even half a percentage point makes a large difference on a long mortgage.
Frequently asked questions
Does this include fees, insurance or taxes?
No. It covers principal and interest only. Mortgages often add property tax and insurance to the monthly bill, and loans can carry origination fees.
What if the interest rate is 0%?
The calculator divides the loan evenly across the months, so the payment is simply the amount divided by the number of payments.
Results are estimates for planning. Your lender’s figures may differ slightly because of rounding and fees.