Loan / EMI Calculator

Enter a loan amount, interest rate, and term to calculate your fixed monthly payment (EMI), total interest, and a full year-by-year payoff schedule.

Currency

Loan amount

Annual interest rate

Loan term

yrs

Monthly payment (EMI)

$415.17

Total interest

$4,910.03

Total repayment

$24,910.03

$20,000.00 principal vs. $4,910.03 interest

Show year-by-year amortization

Year	Principal	Interest	Balance
1	$3,317	$1,665	$16,683
2	$3,628	$1,354	$13,056
3	$3,968	$1,014	$9,088
4	$4,340	$642	$4,747
5	$4,747	$235	$0

How EMI is calculated

A fixed-rate installment loan charges the same interest rate for the whole term, with a level monthly payment that covers both principal and interest so the balance reaches exactly zero at the end of the term.

The formula, in plain language

EMI = P × [r(1 + r)^n] / [(1 + r)^n − 1]

EMI — the fixed monthly payment
P — the loan amount
r — the monthly interest rate (annual rate ÷ 12, as a decimal)
n — the total number of monthly payments (loan term in years × 12)

Worked example

Suppose you take out a $20,000 loan at 6% annual interest over 5 years:

Monthly interest rate: 6% ÷ 12 = 0.5%
Number of payments: 5 × 12 = 60
Monthly EMI: $386.66
Total repaid: $23,199.36
Total interest: $3,199.36

Try these exact numbers in the calculator above to see the full amortization schedule.

Frequently asked questions

What does EMI mean?+

EMI stands for Equal Monthly Installment — a fixed payment amount paid every month for the life of a loan, covering both interest and a portion of the principal, so the loan is fully paid off by the end of the term.

Why does more of my payment go to interest at first?+

Interest is charged on whatever balance remains, and early on that balance is largest, so a bigger slice of each fixed payment covers interest. As the balance shrinks over time, more of the same payment goes toward principal — the amortization schedule above shows this shift year by year.

Does a longer loan term always cost more?+

In total interest, usually yes — stretching payments over more months means the lender is owed money for longer, even if the rate stays the same. But a longer term also lowers the monthly payment, which can matter more for your monthly budget. There's a real trade-off, not a universally 'right' answer.

Can I use this for a personal loan, auto loan, or student loan?+

Yes — the underlying math (a fixed-rate, fixed-term installment loan) is the same regardless of what the loan is for. Just enter the loan amount, your rate, and term. It doesn't model loans with variable rates or origination fees added to the balance.

Is my actual rate the same as what I enter here?+

Use the annual percentage rate (APR) or interest rate your lender quotes. Some lenders quote a flat/add-on rate instead of a true amortizing rate, which produces a different (usually higher) effective cost — check your loan documents if the numbers don't match what a lender told you.

Not financial advice. This calculator is provided for general educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Results are estimates based on the assumptions you enter and may not reflect actual returns, fees, or taxes. Consult a qualified financial professional before making decisions based on this information.