Loan Calculator
Calculate monthly loan payment, total interest, and full amortization schedule.
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Enter loan details above to see the schedule. | ||||
This loan calculator estimates your monthly payment, total payment, and total interest for a fixed-rate loan. It also provides a month-by-month amortization schedule in two modes: Equal Monthly Installment (EMI) and Equal Principal.
How Loan Payments Are Calculated
EMI — equal monthly installment
The most common loan structure worldwide. Every monthly payment is identical: it covers accrued interest on the remaining balance plus enough principal to retire the loan exactly on the last scheduled payment. Early in the loan, most of each payment is interest; later, most is principal — this is the amortization curve. Borrowers prefer EMI for predictability: the same amount leaves your account every month, making budgeting straightforward.
Equal principal
Each month you repay a fixed principal amount (total loan ÷ number of months), plus interest on the declining remaining balance. This means your first payment is the largest and each subsequent payment is slightly smaller. You pay less total interest over the life of the loan compared to EMI, because the principal decreases faster. This structure is common in some European, Vietnamese, and Asian mortgage and business loan products. The tradeoff is higher early payments that can strain cash flow.
EMI: PMT = P × [r(1+r)^n] / [(1+r)^n − 1]Equal Principal: payment_i = P/n + (P − (i−1)×P/n) × rwhere P = principal, r = monthly rate (annual% ÷ 12 ÷ 100), n = months Car loans — typical scenarios
A car loan of $25,000 at 6% annual interest for 60 months gives a monthly EMI of approximately $483 and total interest of $3,998. Stretching to 72 months reduces the payment to $415 but increases total interest to $4,860 — you pay $862 more for the lower monthly commitment. This trade-off — lower payment vs. less total interest — is the core decision every car buyer faces. Run both term lengths here to compare before visiting the dealership.
Personal loans and home loans
Personal loans typically range from 1–5 years at higher interest rates (8–20% depending on credit score). A $10,000 personal loan at 12% for 36 months costs $332/month and $1,957 in total interest. Extending to 60 months drops the payment to $222/month but raises total interest to $3,347. Home loans (mortgages) operate at lower rates over 15–30 years, where the interest cost over the full term often exceeds the original principal — use the amortization schedule above to see exactly how much of each early payment goes to the bank vs. your equity.
Disclaimer
This calculator estimates fixed-rate loans only. Actual terms from lenders may include origination fees (0.5–2% of principal), prepayment penalties, insurance requirements, or variable rate adjustments. The figures shown are accurate for the inputs provided but do not constitute financial advice. Consult a licensed financial professional before signing any loan agreement.
Frequently Asked Questions
What is a loan amortization schedule?
An amortization schedule shows each monthly payment broken down into principal and interest, along with the remaining loan balance after each payment.
Does this calculator work for mortgages?
Yes, it works for any fixed-rate loan including mortgages. Use the years toggle and enter the loan amount, annual interest rate, and term in years.
Can I use it for car loans?
Absolutely. Enter the car price minus down payment as the loan amount, the annual interest rate from your financing, and the term in months (e.g., 60 months for a 5-year loan).
What if I make extra payments?
This calculator assumes fixed monthly payments with no extra payments. For extra payment scenarios, you would need a more advanced calculator.
Is the interest rate monthly or annual?
Enter the annual interest rate as a percentage (e.g., 6 for 6%). The calculator converts it to a monthly rate by dividing by 12.
What is the formula for Loan Calculator?
EMI: PMT = P × [r(1+r)^n] / [(1+r)^n − 1]. Equal Principal: monthly principal = P/n, interest = remaining balance × r, where r = annual rate / 12.