Loan Calculator

Calculate your EMI (Equated Monthly Installment), total interest, and view the complete amortization schedule

Loan Details

How This is Calculated

EMI Formula: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)

Where:

  • P = Principal amount
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Number of monthly payments (years × 12)

Each payment is split between interest (based on remaining balance) and principal repayment.

Monthly Payment (EMI)

$16,717.55

Total Interest

$3,053.00

Total Principal

$1,000,000.00

Total Amount Paid

$1,003,053.00

Payment Breakdown

Balance Over Time

Amortization Schedule(60 months)

MonthPaymentPrincipalInterestBalance
1$16,717.55$16,617.55$100.00$983,382.45
2$16,717.55$16,619.21$98.34$966,763.24
3$16,717.55$16,620.87$96.68$950,142.36
4$16,717.55$16,622.54$95.01$933,519.83
5$16,717.55$16,624.20$93.35$916,895.63
6$16,717.55$16,625.86$91.69$900,269.77
7$16,717.55$16,627.52$90.03$883,642.25
8$16,717.55$16,629.19$88.36$867,013.06
9$16,717.55$16,630.85$86.70$850,382.21
10$16,717.55$16,632.51$85.04$833,749.70
11$16,717.55$16,634.18$83.37$817,115.53
12$16,717.55$16,635.84$81.71$800,479.69

Our loan calculator helps you determine your monthly payment (EMI), total interest cost, and complete amortization schedule for any loan. Whether you're planning a personal loan, business loan, or any other type of financing, this tool provides accurate estimates to help you make informed borrowing decisions.

What is calculators.loan-calculator.title?

A loan calculator is a financial tool that computes your Equated Monthly Installment (EMI) based on the principal amount, interest rate, and loan term. The EMI is a fixed payment amount you make each month that includes both principal repayment and interest charges.

Understanding your loan payments before borrowing is crucial for budgeting and financial planning. By using a loan calculator, you can compare different loan offers, see how interest rates affect your payments, and determine if a loan fits within your monthly budget.

Loan calculators are particularly useful when shopping for loans, as they allow you to see the true cost of borrowing. You can experiment with different loan amounts, interest rates, and repayment terms to find the option that works best for your financial situation.

How to Use This Calculator

  1. 1

    Loan Amount

    Enter the total amount you plan to borrow. This is the principal amount that will be repaid over the loan term.

    Tip: Consider borrowing only what you need, as larger loans mean higher monthly payments and more interest paid over time.

  2. 2

    Annual Interest Rate

    Input the annual interest rate offered by your lender. This rate determines how much interest you'll pay on the loan.

    Tip: Interest rates vary based on your credit score, loan type, and lender. Shop around and compare rates from multiple lenders to get the best deal.

  3. 3

    Loan Term

    Select the repayment period in years. Common terms range from 1 to 30 years, depending on the loan type.

    Tip: Longer terms mean lower monthly payments but higher total interest. Shorter terms save on interest but require larger monthly payments.

  4. 4

    Fixed Fees

    Enter any one-time fees (like origination fees) charged by the lender. These are added to the loan cost.

  5. 5

    Percentage Fees

    Some lenders charge fees as a percentage of the loan amount. Enter this percentage if applicable.

  6. 6

    Include Fees in Principal

    Check this box if you want fees to be added to the loan amount and financed over the loan term.

Result: After clicking Calculate, you'll see your monthly payment (EMI), total interest paid over the loan term, total amount paid (principal + interest), and a complete amortization schedule showing how each payment is split between principal and interest.

How the Calculation Works

The loan calculator uses the standard EMI formula to compute your monthly payment. This formula accounts for compound interest and ensures that each payment reduces both principal and interest.

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Variables:

  • P= Principal loan amount (the amount borrowed)
  • R= Monthly interest rate (annual rate ÷ 12)
  • N= Number of monthly payments (loan term in years × 12)

Important Assumptions:

  • Interest is compounded monthly
  • Payments are made at the end of each month
  • Interest rate remains fixed throughout the loan term
  • No prepayment penalties are included in the calculation

Practical Examples

Example 1: Personal Loan

You're borrowing $25,000 for home improvements at 8% annual interest for 5 years.

Inputs:

  • principal: $25,000
  • rate: 8%
  • term: 5 years

Interpretation: Your monthly payment would be approximately $507. The total interest paid over 5 years would be about $5,420, making your total repayment $30,420. This means you're paying $5,420 in interest on top of the $25,000 principal.

Example 2: Business Loan

A small business needs $100,000 at 6% interest for 10 years to expand operations.

Inputs:

  • principal: $100,000
  • rate: 6%
  • term: 10 years

Interpretation: The monthly payment would be $1,110. Over 10 years, you'd pay $33,200 in interest, bringing the total to $133,200. Notice how a longer term (10 years vs 5 years) results in more total interest despite the lower rate.

When Should You Use This Calculator?

  • •Before applying for a loan to understand your monthly payment obligation
  • •Comparing multiple loan offers from different lenders
  • •Planning your budget to ensure loan payments fit comfortably
  • •Understanding how interest rates affect your total borrowing cost
  • •Deciding between different loan terms (e.g., 5 years vs 10 years)
  • •Calculating the impact of fees on your loan cost

Limitations and Things to Keep in Mind

Results are estimates only. Actual loan terms may vary based on your credit score, lender policies, and other factors.

This calculator assumes a fixed interest rate. Variable-rate loans will have different payment schedules.

Prepayment penalties, late fees, and other charges are not included in the calculation.

For important financial decisions, consult with a financial advisor or loan officer.

Actual loan approval and rates depend on lender evaluation of your creditworthiness.

Frequently Asked Questions (FAQs)

What is the difference between interest rate and APR?

The interest rate is the cost of borrowing the principal amount. APR (Annual Percentage Rate) includes the interest rate plus additional fees and charges, giving you the true cost of the loan. Always compare APRs when shopping for loans.

Can I pay off my loan early?

Yes, most loans allow early repayment. Making extra payments reduces your total interest and shortens the loan term. However, some lenders charge prepayment penalties, so check your loan agreement first.

How does loan term affect my payment?

Longer loan terms result in lower monthly payments but higher total interest paid. Shorter terms mean higher monthly payments but less total interest. Choose a term that balances your monthly budget with your desire to minimize interest costs.

What is an amortization schedule?

An amortization schedule is a table showing how each payment is split between principal and interest. Early payments are mostly interest, while later payments are mostly principal. This schedule helps you understand how your loan balance decreases over time.

How accurate is this calculator?

This calculator uses standard financial formulas and provides accurate estimates. However, actual loan terms depend on your credit score, lender policies, and market conditions. Use this as a planning tool and verify with your lender.

What fees should I include in the calculation?

Include all upfront fees like origination fees, processing fees, and application fees. Some fees may be added to the loan amount (financed) while others are paid separately. Check with your lender for the exact fee structure.

Related Calculators

APR Calculator

Calculate Annual Percentage Rate (APR) including fees

DTI Calculator

Calculate your debt-to-income ratio and determine the maximum loan amount you can afford

Extra Payment Calculator

See how extra payments can reduce your loan term and save on interest

Amortization Calculator

View complete loan amortization schedule

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