Loan Calculator
Work out the real cost of a loan before you sign. Enter the loan amount, interest rate, and term, and this calculator shows your fixed monthly payment (the EMI), the total interest you'll pay over the life of the loan, the total amount repaid, and a year-by-year amortization schedule showing how each payment splits between principal and interest.
Monthly payment
$396.02
How to Use
Enter the loan amount, the annual interest rate (APR), and the term in years. The results update instantly: your monthly payment, total interest, total paid, and an amortization table showing how much principal and interest you pay each year and your remaining balance. Adjust the rate or term to compare scenarios — a shorter term raises the monthly payment but slashes total interest.
Why This Tool Is Useful
Lenders advertise the monthly payment, but the figure that really matters is the total interest — and that is easy to underestimate. This calculator makes the full cost transparent, including how front-loaded the interest is in the early years (the amortization schedule). It works for personal loans, auto loans, student loans, and mortgages, so you can compare offers and see exactly what a different rate or term does to your wallet.
How Loan Payments Are Calculated
A fixed-rate loan is repaid in equal monthly installments — often called the EMI (equated monthly installment). Each payment covers the interest accrued that month plus a portion of the principal. The standard formula is EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments.
Because the payment is fixed, your balance falls a little faster each month, which is what produces the amortization schedule below.
What Amortization Means
Amortization is the process of paying off a loan with regular payments where the split between interest and principal changes over time. Early on, most of each payment goes to interest because the balance (and therefore the interest charged) is high. As the balance shrinks, more of each payment chips away at the principal.
This is why paying a little extra in the early years saves so much — it attacks principal before years of interest can accrue on it. The year-by-year table above shows this shift clearly.
How Rate and Term Change the Cost
Two levers control your loan: the interest rate and the term. A higher rate raises both the monthly payment and the total interest. A longer term lowers the monthly payment but increases total interest substantially, because you are borrowing the money for longer.
For example, stretching a loan from 3 years to 7 years cuts the monthly payment by more than half — but you pay interest for over twice as long. Use the calculator to see the trade-off for your own numbers.
The Power of Paying Extra
Any payment above your EMI goes straight to the principal, which removes all the future interest that principal would have generated. Even small, occasional extra payments can shorten the term by months or years and save a meaningful amount of interest.
If you can, round your payment up or make one extra payment a year — the impact is largest early in the loan, when the balance is highest.
Tips Before You Borrow
A few things worth checking:
- Compare the total interest, not just the monthly payment, across offers.
- Look at the APR, which includes fees, rather than the headline interest rate alone.
- A shorter term costs more per month but far less overall.
- Check whether the loan allows penalty-free extra or early payments.
- Make sure the monthly payment fits comfortably within your budget.
Monthly Payment per $10,000 Borrowed
| Loan term | 5% APR | 7% APR | 10% APR |
|---|---|---|---|
| 3 years | $299.71 | $308.77 | $322.67 |
| 5 years | $188.71 | $198.01 | $212.47 |
| 7 years | $141.34 | $150.93 | $166.01 |