Loan Payment Calculator
This loan payment calculator finds the monthly payment, total interest, and total paid on an amortized loan from the loan amount, the annual interest rate, and the term. It also shows how the first payment splits between interest and principal and the balance after year one, so this loan calculator doubles as a quick amortization calculator.
Results
The Loan Payment Calculator is part of our Loans & Credit collection. Browse more loans & credit to size, convert, and check your work alongside this tool.
What the loan payment calculator shows
Most personal, car, and home loans are amortized: you pay the same amount every month, and each payment covers that month's interest plus some of the principal. The loan payment calculator finds that fixed payment, the total interest over the term, and how the first payment is split. In India the same figure is called the equated monthly installment, or EMI, and lenders sometimes label the tool a lending calculator or finance calculator.
Equated monthly installment formula
P is the loan amount, r the monthly rate (annual rate ÷ 12), and n the number of monthly payments. Each month, interest is the balance times r, and the rest of the payment reduces the principal. That is what makes it an amortized loan.
Loan payment calculator example
A $200,000 loan at 6 percent for 30 years (360 payments):
The first payment is $1,000.00 interest and $199.10 principal. Interest in year one totals $11,933.19, leaving a balance of $197,543.98.
How to use the loan calculator
Enter the loan amount, the annual interest rate, and the term in years. The loan calculator returns the monthly payment, the total paid, the total interest, the number of payments, the interest and principal in the first payment, the interest paid in year one, and the balance after year one. Use it as a personal loan calculator, a bank loan calculator, an education loan repayment calculator, or a monthly EMI calculator; it is a simple loan calculator and loan payment estimator in one.
Reading the amortization calculator results
Early payments are mostly interest because the balance is highest; the principal share grows each month. Total interest shows the full cost of borrowing. A shorter term raises the payment but cuts total interest sharply: a $20,000 loan at 7 percent over 5 years costs $396.02 a month and $3,761.44 in interest.
When to use the personal loan calculator
- Comparing loan offers with the personal loan calculator
- Checking an EMI before signing
- Seeing how much interest goes into early payments
- Testing a shorter or longer term
Common loan payment calculator mistakes
- Using the annual rate monthly. Divide the annual rate by 12.
- Forgetting fees and insurance. They raise the true cost.
- Ignoring total interest. A low payment over a long term can cost much more.
Tips for accurate results
- Compare offers by APR, which includes fees.
- Check whether extra payments are allowed without penalty.
- Test two or three terms before choosing.
Loan amortization calculator: how the balance falls
An amortization schedule lists every payment with its interest, principal, and remaining balance. The loan amortization calculator here gives the key points of that schedule: the first payment split, the interest in year one, and the balance after twelve payments. On a 30-year loan, the balance falls slowly at first and faster later, because the principal share of each payment grows as interest on the shrinking balance falls. A business borrowing to fund a project can compare the payment with expected profit, and the break-even calculator shows how many units must be sold to cover fixed costs such as loan payments.
Calculate monthly interest on a loan
To calculate monthly interest on any month, multiply the current balance by the annual rate divided by 12. On $200,000 at 6 percent, that is $1,000 in the first month. Repeating that step for every month builds the full loan amortization schedule; a loan repayment schedule calculator or amortization schedule calculator simply lists those rows, while the interest amount calculator figure above gives the total.
Loan repayment calculator reference ($20,000 loan)
| Rate | Term | Monthly payment | Total interest |
|---|---|---|---|
| 5% | 3 years | $599.42 | $1,579.05 |
| 7% | 5 years | $396.02 | $3,761.44 |
| 10% | 5 years | $424.94 | $5,496.45 |
| 7% | 7 years | $301.85 | $5,355.70 |
Loan Payment Calculator FAQ
How is a monthly loan payment calculated?
M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the monthly rate and n the number of payments.
What is an equated monthly installment (EMI)?
The fixed monthly payment on an amortized loan, covering interest and part of the principal.
Why is so much of the first payment interest?
Interest is charged on the outstanding balance, which is largest at the start.
How can I pay less interest?
Choose a shorter term, a lower rate, or make extra principal payments.