Loan & EMI Calculator

How to use the loan & emi calculator

1. Enter the amount borrowed.
2. Enter the annual interest rate and the term in years.
3. Read the monthly payment, total interest and total repaid.

About this tool

An amortising loan is repaid in equal instalments, each covering the interest accrued since the last payment with the remainder reducing the balance. Because the balance falls over time, early payments are mostly interest and later ones mostly principal — which is why overpaying early saves disproportionately more than overpaying near the end.

The payment comes from the standard formula P = A · r / (1 − (1 + r)^−n), where A is the amount borrowed, r is the interest rate per period and n is the number of periods. The rate you enter is annual and is divided by twelve.

This is an estimate of the repayment on the terms you type in. Real quotes include arrangement fees, insurance and sometimes a different compounding convention, and a variable rate will not stay where it started. Treat the result as a planning figure, not an offer.

Common uses

• Comparing two mortgage offers on the same amount.
• Seeing what a shorter term does to the total interest.
• Checking whether a car finance quote adds up.

Frequently asked questions

Is this the same as EMI?

Yes. Equated Monthly Instalment is the same fixed-payment amortisation calculation under another name.

Why is the total interest so much higher on a longer term?

You are borrowing the money for longer, so interest accrues on a balance that falls more slowly. A longer term lowers the monthly payment and raises the total cost.

Does this include fees or insurance?

No. It calculates the repayment on the principal and rate you enter. Add product fees separately when comparing offers.