Loan Calculator
Monthly EMI, total interest, amortization schedule & payoff date - for any loan type
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Fees & Additional Costs
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Extra & Early Payments
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๐ Extra Payment Savings
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New payoff date
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Compare a Second Loan Offer
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How to Use This Loan Calculator
Choose loan type
Select personal, auto, student, business, mortgage, or payday loan - defaults adjust for each type.
Enter your details
Input loan amount, interest rate, and term. Add fees, extra payments, or compare two loan offers.
Get instant results
See your EMI, total interest, payoff date, full amortization table, and CSV export.
The Loan Payment Formula (EMI)
This calculator uses the standard amortization formula, which produces equal periodic payments that cover both interest and principal, reducing the balance to exactly zero on the final payment:
EMI = P ร [ r(1+r)โฟ ] รท [ (1+r)โฟ - 1 ]
EMI = Monthly payment ยท P = Principal (loan amount) ยท r = Monthly rate (annual rate รท 12) ยท n = Total months
Example: $25,000 loan at 8.5% for 5 years โ r = 0.7083%/month, n = 60 โ EMI = $512.07/month. Total paid = $30,724. Total interest = $5,724.
Simple Interest vs. Compound Interest Loans
Most installment loans use compound (amortized) interest - each payment covers that month's interest on the remaining balance, with the rest going to principal. Simple interest loans charge interest only on the original principal, making them less common but sometimes seen in personal and auto loans. The difference can be substantial over a long term.
Loan Types Explained
| Loan Type | Typical Rate | Typical Term | Secured? | Best For |
|---|---|---|---|---|
| Personal Loan | 6%-36% | 1-7 years | Unsecured | Debt consolidation, emergencies |
| Auto Loan | 4%-15% | 2-7 years | Secured (car) | Vehicle purchase |
| Student Loan | 3%-12% | 5-20 years | Unsecured | Education expenses |
| Business Loan | 5%-25% | 1-10 years | Varies | Business expansion, equipment |
| Mortgage | 5.5%-8% | 15-30 years | Secured (home) | Home purchase |
| Payday Loan | 200%-600% APR | 2-4 weeks | Unsecured | Short-term emergency (avoid if possible) |
Frequently Asked Questions
What is EMI and how is it calculated?
EMI (Equated Monthly Installment) is the fixed monthly payment made to repay a loan in full over a set term. It is calculated using the formula: EMI = P ร [r(1+r)โฟ] รท [(1+r)โฟ - 1], where P is the loan principal, r is the monthly interest rate, and n is the number of monthly payments. The formula ensures each payment covers that month's interest with the remainder reducing the principal.
What is APR vs. interest rate?
The interest rate is the base cost of borrowing the principal. The Annual Percentage Rate (APR) includes the interest rate plus lender fees, origination charges, and other costs, expressed as a yearly rate. APR gives a more accurate total cost comparison between loans. A loan with a low interest rate but high fees can have a much higher APR than one with a slightly higher rate and no fees.
Does making extra payments really help?
Yes, significantly. On a $25,000 loan at 8.5% for 5 years, adding $100/month extra reduces total interest by about $1,100 and pays off the loan ~10 months early. Every extra dollar applied to principal saves interest at your full loan rate - a guaranteed, risk-free return. Use the "Extra Payments" section above to model your specific savings.
What credit score do I need for a personal loan?
Most lenders require a minimum credit score of 580-600 for personal loans. Scores of 670+ generally qualify for competitive rates. Scores of 750+ typically access the best available rates. With poor credit (below 580), you may still qualify through some lenders but at rates of 25%-36% or more, making alternative options like credit unions or secured loans worth exploring.
What is an amortization schedule?
An amortization schedule is a complete table of every loan payment, showing exactly how much goes to interest and how much to principal for each installment, along with the remaining balance. Early payments are mostly interest; later payments are mostly principal. This calculator generates a full monthly amortization table that you can export to CSV.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but dramatically less total interest. A longer term lowers monthly payments but increases the total cost of the loan. For a $25,000 loan at 8.5%: a 3-year term costs $786/month and $3,300 interest; a 7-year term costs $391/month but $7,800 interest. Choose the shortest term your cash flow comfortably supports.