What is EMI on a loan?
EMI, an equated monthly instalment, is the fixed amount you repay each month. Part of it is interest and the rest repays the loan.
Loan Calculator
Find the monthly payment or EMI on any loan, the total interest and the payoff date, with a full amortization schedule to download.
Calculate
PaymentAmountTermRate
Currency
Loan amount
$
Interest rate
% a year
Years
Months
$396.02monthly payment (EMI)
$20,000 at 7% over 5 years is $396.02 a month, $3,761.48 of interest in all.
Principal and interest
- Principal
- $20,000.00 · 84%
- Interest
- $3,761.48 · 16%
- Total cost
- $23,761.48
Paid each year
- Principal
- Interest
Working
i = 7% ÷ 12 = 0.0058333
20,000 × 0.0058333 × (1 + 0.0058333)^60 ÷ ((1 + 0.0058333)^60 − 1) = 396.02
60 payments total 23,761.48; 23,761.48 − 20,000 = 3,761.48 interest
Details
- Number of payments
- 60 (5 years)
- Payoff date
- Set a first payment date
- Total interest
- $3,761.48
- Total of payments
- $23,761.48
- Last payment
- $396.30
- APR with fees
- Add fees in the settings
An estimate for a fixed-rate loan. Lenders can round differently, count interest by the day or add insurance and fees, so check the figures on your offer.
Pay every
Month2 weeksWeek
First payment date
Dates every payment in the schedule and gives the payoff date.
Extra on every payment
$
Goes straight off the balance, so the loan ends sooner.
Prepayment
$
With payment no.
After the prepayment
Shorter termLower payment
Add a prepayment to choose.
Upfront fees
$
An origination or processing fee. Gives the APR, the cost with fees.
Amortization schedule by year
YearlyEach payment
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $4,752.24 | $3,461.90 | $1,290.34 | $16,538.10 |
| 2 | $4,752.24 | $3,712.20 | $1,040.04 | $12,825.90 |
| 3 | $4,752.24 | $3,980.52 | $771.72 | $8,845.38 |
| 4 | $4,752.24 | $4,268.27 | $483.97 | $4,577.11 |
| 5 | $4,752.52 | $4,577.11 | $175.41 | $0.00 |
Change the amount, the rate or the term and the payment, the chart and the schedule redraw at once, so comparing two loan offers is quick.
No account and no email: the loan figures you type stay in this browser tab and are never uploaded or kept.
- Payment, amount, term or rate
- Extra payments and prepayment
- Amortization schedule for Excel
How to calculate a loan payment
Three numbers give the monthly payment; the schedule below the calculator shows where each payment goes.
Enter the loan amount
Type how much you are borrowing and the yearly interest rate on your offer. The currency follows your region.
Set the loan term
Enter the term in years and months. The monthly payment, or EMI, appears at once with the interest you will pay.
Read the schedule
The loan amortization schedule splits every payment into principal and interest. Copy it to Excel or as a CSV.
EMI and loan payment formula
The loan payment formula, also called the EMI formula, is EMI = P × i × (1 + i)^n ÷ ((1 + i)^n − 1). P is the amount you borrow, i the interest rate for one payment (the yearly rate ÷ 12 when you pay monthly) and n the number of payments.
For 20,000 at 7% over 5 years, i is 0.07 ÷ 12 = 0.0058333 and n is 60, so the monthly payment is 396.02. The 60 payments, the last one 396.30 to clear the final cents, come to 23,761.48, which means 3,761.48 of it is interest.
The same formula gives the EMI on a personal loan or home loan in India: ₹10,00,000 at 12% for 3 years is ₹33,214.31 a month. At 0% it becomes P ÷ n. The Working block under the answer shows each step with your own numbers.
How a loan amortization schedule works
Amortization means paying a loan off in equal payments. Each one first pays the interest on the balance still owed, and the rest lowers the principal. The payment never changes, but the split between the two shifts with every payment.
On the 20,000 loan at 7%, the first payment of 396.02 is 116.67 interest and 279.35 principal; by the last one, interest is only 2.30. You pay 1,290.34 of interest in year 1 and 175.41 in year 5, which is why the chart's interest band shrinks.
The amortization table lists every payment with its principal, interest and the balance left, by year or by payment, dated from your first payment. Copy it into Excel or Google Sheets, or save a CSV to check against your lender's statements.
How to pay off a loan faster
Anything paid on top of the regular payment comes straight off the principal, so every later payment carries less interest. Adding 100 a month to the 20,000 loan at 7% clears it in 47 payments instead of 60 and saves 893.74 of interest.
A one-time prepayment works the same way: 5,000 extra with the 12th payment ends the loan after 45 payments and saves 1,326.26. Lenders in India often ask whether to reduce the EMI or the tenure; a lower EMI of 276.29 here saves only 747.09.
Cutting the term saves more because the balance falls faster. Put an extra payment or a prepayment in the settings to see the new payoff date and what it saves. Some loans charge a prepayment penalty, so read your agreement first.
A loan payment and EMI calculator
Solve for any number
Find the payment, how much you can borrow, how long it takes to repay or the interest rate you pay.
Extra payments
Add a set amount to every payment and see how many payments it cuts and how much interest it saves.
Lump-sum prepayment
Pay a one-time sum with any payment, then pick a shorter tenure or a lower EMI and compare the two.
APR with fees
Add an origination or processing fee to get the APR, the yearly cost to compare offers from lenders.
Biweekly or weekly
Pay every two weeks or every week, and set the first payment date to see the day the loan ends.
Amortization in Excel
Copy the schedule into Excel or Sheets, or save a CSV. Rupees are grouped in lakhs and crores.
Your loan figures stay private
The loan maths happens on your device. The amounts and rates you type are never sent, saved or tied to you.
Processing
Your browser works out the payment, the interest and the whole schedule. No figure goes to a server.
Storage
No loan is remembered. A reload puts the boxes back to the 20,000 example and keeps no history.
Account
Use this free loan calculator as often as you need, with no account, no email and no credit check.
Questions about loans and EMI
How is EMI calculated?
With P × i × (1 + i)^n ÷ ((1 + i)^n − 1), i being the monthly rate. ₹10,00,000 at 12% for 3 years gives ₹33,214.31 a month.
What is amortization?
Paying off a loan in equal payments over a set term, each one split between that month's interest and the principal.
How is interest calculated on a loan?
Most loans charge the yearly rate ÷ 12 on what you still owe each month. 20,000 at 7% costs 116.67 in month one, then less.
APR vs interest rate: what's the difference?
The rate is the cost of the money alone; APR adds upfront fees. 10,000 at 15% for 3 years with a 500 fee is an 18.67% APR.
What is principal on a loan?
The amount you borrowed and still owe, before any interest. The principal part of each payment is what lowers your balance.
What is a loan term?
How long you have to repay, also called the tenure. At 7%, 20,000 over 3 years costs 2,231.50 of interest; over 7 years, 5,355.80.
How does the PMT function in Excel work?
=PMT(rate, payments, amount) gives the payment. =PMT(7%/12, 60, -20000) returns 396.02, the same as this loan calculator.
Still stuck, or found a problem? Email dobliquestudio@gmail.com and we will help.