🏦 Loan & EMI Calculator

How to Calculate Your Loan Payment

1. Enter the amount you want to borrow.
2. Enter the annual interest rate your lender quoted, as a percentage.
3. Enter the loan term in years.
4. Read your monthly payment, total interest and payoff date instantly.
5. Add an optional extra monthly payment to see how much time and interest it saves.
6. Click Show Full Schedule for a year-by-year breakdown of principal versus interest.

How is the monthly payment worked out?

It uses the standard amortising loan formula, the same one banks use: the payment is fixed so that the balance reaches exactly zero on the final month. Each payment covers the interest accrued that month first, and whatever is left reduces the principal. Because the balance falls over time, the interest portion shrinks and the principal portion grows — which is why early payments feel like they barely dent the loan.

Why does a small rate change matter so much?

Interest compounds over the full term, so the effect multiplies. On a 300,000 loan over 20 years, moving from 7.5% to 8.5% adds roughly 180 to the monthly payment and over 43,000 to the total repaid. This is why shopping between lenders for even half a percent is usually worth more than any other single step in the process.

Should I make extra payments?

Extra payments go entirely against the principal, so they remove all the future interest that principal would have generated. The earlier in the term you make them, the more they save. Enter an amount in the extra payment field to see the exact effect on your loan. Two cautions: check whether your lender charges an early repayment penalty, and compare the saving against the return you would get investing the same money.

What is not included in this calculation?

This is the principal-and-interest payment only. A real mortgage payment usually also includes property tax, home insurance and sometimes mortgage insurance or service charges, which can add a significant amount. Car loans may include fees rolled into the balance. Ask your lender for the full payment figure before budgeting.