Calculate the monthly EMI, total interest paid, and total payment for any type of loan.
This tool calculates your monthly loan payment, total interest paid, and full repayment schedule based on the loan amount, interest rate, and loan term. It's useful for comparing loan offers and understanding the true cost of borrowing before committing.
Monthly Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments.
Enter your loan amount, annual interest rate, and loan term, and the calculator returns your monthly payment, total interest paid, and total repayment amount.
Example: A $20,000 loan at 6% annual interest over 5 years results in a monthly payment of approximately $386.66, with total interest paid of about $3,199.60 over the life of the loan.
Why does a longer loan term mean paying more total interest, even at the same rate? A longer term spreads payments out, lowering the monthly amount, but interest accrues over a longer period, so the total interest paid over the full loan is higher despite the lower monthly payment.
What's the difference between APR and interest rate? The interest rate reflects only the cost of borrowing the principal, while APR (Annual Percentage Rate) includes additional fees and costs, giving a more complete picture of the loan's true annual cost.
How does making extra payments affect a loan? Extra payments (beyond the required minimum) typically reduce the principal faster, which reduces total interest paid and can shorten the loan term, though it's worth checking for any prepayment penalties first.
What is amortization? Amortization is the process of gradually paying off a loan through regular payments, where early payments go mostly toward interest and later payments go increasingly toward principal, following a predictable schedule.
Should I compare loans by monthly payment or total cost? Both matter — a lower monthly payment might come from a longer term that increases total interest paid, so comparing total repayment cost alongside monthly affordability gives a fuller picture when choosing between loan options.