Loan Calculator

Calculate your monthly loan payment (EMI), total amount payable, and total interest for any loan. Enter the loan amount, annual interest rate, and term in years to get a complete amortization breakdown.

Notes

EMI Formula

M = \frac{P \cdot r ( 1 + r ) ^{n}}{( 1 + r ) ^{n} - 1}

Symbol	Meaning	Unit
M	Monthly payment (EMI)	$
P	Principal (loan amount)	$
r	Monthly interest rate = Annual rate ÷ 12 ÷ 100	decimal
n	Total number of monthly payments = Years × 12	months

Worked Example

Loan = $200,000, Rate = 6% per year, Term = 30 years

r = \frac{6}{12 \times 100} = 0.005, n = 30 \times 12 = 360

M = \frac{200 , 000 \times 0.005 \times ( 1.005 ) ^{360}}{( 1.005 ) ^{360} - 1} \approx $1, 199.10

ℹTotal paid = $1,199.10 × 360 = $431,676. Total interest = $431,676 − $200,000 = $231,676.

How Amortization Works

Every monthly payment covers two components: interest on the outstanding balance and a portion of principal repayment. Early payments are mostly interest; later payments are mostly principal.

Month	Opening Balance	Interest	Principal	Closing Balance
1	$200,000.00	$1,000.00	$199.10	$199,800.90
2	$199,800.90	$999.00	$200.10	$199,600.80
12	$197,820.50	$989.10	$210.00	$197,610.50
180	$140,430.20	$702.15	$496.95	$139,933.25
360	$1,193.13	$5.97	$1,193.13	$0.00

Effect of Rate and Term

For a $200,000 loan, here is how monthly payment and total interest change with rate and term:

Rate	15 Years – EMI	15 Years – Total Interest	30 Years – EMI	30 Years – Total Interest
4%	$1,479.38	$66,288	$954.83	$143,739
6%	$1,687.71	$103,787	$1,199.10	$231,676
8%	$1,911.30	$144,034	$1,467.53	$328,311

💡Cutting the loan term in half (30 → 15 years) nearly halves total interest paid, even though the monthly payment is higher. A lower rate saves even more.

Loan Formula — Full Reference — EMI derivation, variables, and worked examples
How Loan Repayment Works — Detailed Notes — Amortization explained, interest vs principal split, tips

Frequently Asked Questions

What is EMI?

EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan over a set term. Each payment covers the month's interest plus a portion of principal, so the outstanding balance falls to zero by the final payment.

Does extra payment reduce interest?

Yes — making extra payments directly reduces the outstanding principal, so future interest charges are lower. Even one extra payment per year on a 30-year mortgage can cut the loan term by several years and save tens of thousands in interest.

What is the difference between a fixed and variable rate loan?

A fixed-rate loan has the same interest rate for the entire term, so the EMI never changes. A variable (or adjustable) rate loan has a rate that can change periodically based on a benchmark index — the EMI will go up or down when the rate resets.

How do I calculate the total interest paid on a loan?

Total interest = (Monthly Payment × Number of Months) − Principal. For example, a $200,000 loan at 6% for 30 years: $1,199.10 × 360 − $200,000 = $231,676 in total interest.