Loan Payment Calculator (EMI)
Monthly loan payment (EMI), total interest, and a full amortization schedule.
Enter a loan amount, interest rate, and term to get the monthly installment (EMI), total interest paid, and total repayment — with a year-by-year breakdown.
New to EMI? Read how to calculate EMI step by step, with a worked example and repayment schedule.
How the loan term changes your payment
For a $20,000 loan at 7% — a typical car or personal loan:
| Term | Monthly payment | Total interest |
|---|---|---|
| 3 years | $617.54 | $2,231.51 |
| 4 years | $478.92 | $2,988.39 |
| 5 years | $396.02 | $3,761.44 |
| 6 years | $340.98 | $4,550.57 |
A longer term makes each payment easier to afford but costs more overall, because you pay interest for longer.
How the interest rate changes your cost
The same $20,000 over 5 years at different rates:
| Rate | Monthly payment | Total interest |
|---|---|---|
| 5% | $377.42 | $2,645.48 |
| 7% | $396.02 | $3,761.44 |
| 9% | $415.17 | $4,910.03 |
| 12% | $444.89 | $6,693.34 |
Your rate depends largely on your credit score and the lender, so comparing a few offers before signing can save thousands.
Tips before you borrow
- Compare total interest, not just the payment. A lower monthly payment can hide a more expensive loan.
- Ask about prepayment. Paying extra toward the principal shortens the loan and cuts interest — check that the lender doesn't charge a prepayment penalty.
- Add the other costs. Origination fees, insurance and taxes aren't part of the EMI; include them when you budget.
Frequently asked questions
What formula calculates the monthly payment?
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments.
Why does the interest portion shrink over time?
Each payment is the same size, but it's split between interest (charged on the remaining balance) and principal. As the balance shrinks, less of each payment goes to interest and more goes to paying down principal.
Does this include taxes, insurance, or fees?
No — this calculates principal and interest only. Mortgages in particular often carry additional escrow for property tax and insurance on top of this figure.
Is EMI the same as a monthly loan payment?
Yes. EMI (equated monthly installment) is the term used in India and parts of Asia; in the US the same figure is simply called the monthly payment on a car loan, personal loan or mortgage. The math is identical.
Is a longer loan term better?
A longer term lowers each monthly payment but raises the total interest you pay. On a $20,000 loan at 7%, stretching from 3 to 6 years cuts the payment from $617.54 to $340.98 but more than doubles the interest, from $2,231.51 to $4,550.57.
How much does a lower interest rate save?
Even a couple of points adds up. On a $20,000 loan over 5 years, 5% costs $2,645.48 in interest while 9% costs $4,910.03 — over $2,200 more for the same amount borrowed.