Loan & EMI Calculator
Whenever you borrow a fixed amount and repay it in equal monthly installments — a personal loan, car loan, or business loan — the math behind your payment is the same. Enter the loan amount, annual interest rate, and term below to see your monthly payment and exactly how much of it is interest.
$0.00 / month
How It Works
The standard amortizing-loan formula used by virtually every bank is:
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly installments. Every payment you make is split between interest (charged on the remaining balance) and principal (which actually reduces what you owe) — early payments are mostly interest, and later payments are mostly principal, even though the total monthly amount never changes.
Worked Example
Take a $20,000 loan at 9.5% annual interest over 5 years. The monthly rate works out to about 0.79%, and over 60 payments that produces an EMI of roughly $420/month. Over the full term you'd repay about $25,210 in total — the original $20,000 plus around $5,210 in interest. Shorten the term to 3 years and the monthly payment rises to around $640, but total interest drops to roughly $3,020, since the bank charges you for fewer months of borrowing.