Calculate your monthly EMI for any loan. Enter the loan amount, interest rate, and tenure to get instant results.
This tool calculates the fixed monthly payment required to pay off any loan (mortgage, auto, personal, etc.) based on the loan amount, interest rate, and repayment term. It's a general-purpose tool useful for budgeting and comparing different loan scenarios before borrowing.
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 over the loan term.
Enter your loan amount, annual interest rate, and loan term, and the calculator returns your fixed monthly payment amount.
Example: A $25,000 loan at 7% annual interest over 5 years results in a monthly payment of approximately $495.03.
Why does the same loan amount have different monthly payments at different rates? The interest rate directly determines how much of your payment goes toward interest versus principal, so a higher rate increases the monthly payment needed to pay off the same principal within the same term.
How does changing the loan term affect monthly payment amount? A longer term spreads the same loan amount over more payments, lowering each individual monthly payment, though this typically increases total interest paid over the full life of the loan.
Is this calculation the same for all types of loans? The basic amortization formula applies broadly to fixed-rate installment loans (mortgages, auto loans, personal loans), though specific loan products may include additional factors like fees, insurance, or variable rates that aren't captured in this basic calculation.
What's the difference between monthly payment and total loan cost? Monthly payment is the recurring amount due each period, while total loan cost includes all payments made over the full term, including all interest — a lower monthly payment from a longer term often means a higher total cost overall.
How can I use this calculator to compare loan offers? Enter the same loan amount with different rates and terms from competing offers to directly compare monthly payments and understand the trade-offs between affordability and total cost before choosing a loan.
This calculator uses the standard amortization formula to determine a fixed monthly payment on a loan, based on three key inputs: the loan principal, the annual interest rate, and the loan term. Behind the scenes, the formula accounts for the fact that each payment covers both interest and principal, with a larger share of early payments going toward interest and a gradually increasing share going toward principal as the loan matures — a pattern known as amortization. Because interest is calculated on the remaining balance each period, even a small change in interest rate or loan term can noticeably shift your monthly payment amount.
Choosing a longer loan term generally lowers your monthly payment, since the total amount owed is spread across more payments, but it also means you'll pay more in total interest over the life of the loan because the balance takes longer to pay down. A shorter term raises your monthly payment but reduces total interest paid, since you're clearing the principal faster. Many borrowers run a few different term lengths through a calculator like this one to see the trade-off directly before deciding what fits comfortably within their monthly budget.
Keep in mind that this calculator estimates the core loan payment based on principal, rate, and term, but your actual monthly obligation on things like a mortgage may also include property taxes, homeowner's insurance, and possibly private mortgage insurance. Interest rates themselves can also vary based on your credit profile, the type of loan, and current market conditions, so the number you calculate here is a useful planning estimate rather than a guaranteed final figure — always confirm exact terms directly with your lender before making a financial commitment.
Making additional payments toward principal, even occasionally, can shorten your loan term and reduce total interest paid more than most borrowers realize, since every extra rupee or dollar goes directly toward reducing the balance interest is calculated on. Before making extra payments, it's worth checking whether your specific loan carries any prepayment penalty, since some loan agreements charge a fee for paying off the balance faster than scheduled.
The interest rate on a loan and its APR (Annual Percentage Rate) aren't always the same number — APR typically includes certain fees and costs bundled into the loan, giving a more complete picture of the loan's true annual cost beyond just the base interest rate. When comparing loan offers from different lenders, comparing APRs rather than just the headline interest rate gives a fairer, more accurate sense of which offer is genuinely more affordable overall.
How does the monthly payment change if the loan term is shortened by just one or two years? Even a modest reduction in loan term typically increases the monthly payment somewhat but can meaningfully reduce total interest paid, since less time is available for interest to accrue on the outstanding balance.
Can this calculator help determine the maximum loan amount I can afford based on a target monthly payment? Yes, by working backward from a desired maximum monthly payment, interest rate, and term, the calculator can estimate the maximum loan principal that would keep payments within that target budget.