Use this calculator for any fixed-rate loan that is repaid in equal monthly instalments — car loans, personal loans, student loans and mortgages. It shows your monthly payment (often called EMI), how much interest you will pay in total, and how each year’s payments split between principal and interest.
Formula
M = P × i ÷ (1 − (1 + i)^−n)
M is the monthly payment, P the loan amount, i the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of monthly payments.
Early payments are mostly interest; as the balance falls, more of each payment goes towards the principal.
Worked example
A $25,000 loan at 6.5% for 5 years has i = 0.065 ÷ 12 ≈ 0.005417 and n = 60. The monthly payment is about $489.15, and total interest is about $4,349.
How to pay less interest
A shorter term or a lower rate both cut total interest. Extra payments towards the principal also help, because future interest is charged on a smaller balance.
Frequently asked questions
What is EMI?
EMI stands for equated monthly instalment — the fixed amount you pay each month on a loan. It is the “monthly payment” shown by this calculator.
Does this include taxes, insurance or fees?
No. It covers principal and interest only. Mortgage payments often include property tax and insurance on top.
Last updated · Calculations checked by automated tests· Editorial policy