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Loan repayment (EMI) and amortization calculator

Updated

Enter the amount borrowed, the annual interest rate and the term. You get the monthly payment, total interest and a full schedule showing how each payment splits between interest and capital.

How it works

Most personal loans, car loans and repayment mortgages are amortizing: you pay the same amount every month, and the split shifts over time. Early payments are mostly interest because the balance is high; later payments are mostly capital.

Overpaying goes straight to the balance, which cuts future interest and shortens the term. Check your loan agreement first, because some lenders charge early repayment fees.

The formula

EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the amount borrowed, r the annual rate divided by 12, and n the number of monthly payments. At 0% interest the payment is simply P / n.

Worked example

Borrowing $100,000 at 6% over 30 years (360 payments) gives a monthly payment of $599.55 and total interest of $115,838.19. Adding $100 a month clears it in 252 months (21 years) and cuts the interest to about $75,938. A 10,000 loan at 12% over 12 months costs 888.49 a month.

Frequently asked questions

What does EMI stand for?

Equated monthly instalment: the fixed payment that clears the loan, interest included, by the end of the term.

Why is so much of my early payment interest?

Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest part shrinks and more of each payment goes to capital.

Is APR the same as the interest rate here?

Not quite. APR includes some fees. For a like-for-like payment estimate use the loan's nominal interest rate; use APR when comparing the overall cost of different loans.

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General information, not personal financial advice. Results are estimates based on the inputs and assumptions shown.