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Loan Calculator

Work out the monthly payment on any loan, what it costs in interest and how it's repaid month by month, or find how much you can borrow.

Calculated on your device
$
Enter a number, for example 1250 or 19.99.
$
Enter a number, for example 1250 or 19.99.
% a year
The yearly rate on the loan. Use the rate, not the APR, if your lender quotes both.
Enter a number, for example 1250 or 19.99.
years
Enter a number, for example 1250 or 19.99.
months
Enter a number, for example 1250 or 19.99.
$
Paying extra cuts the interest and the time it takes to repay. Check your lender allows it without a fee.
Enter a number, for example 1250 or 19.99.

How to use the loan calculator

  • Monthly payment: enter the loan amount, interest rate and term to see your monthly payment (often called the EMI), the total interest and a full repayment schedule. Add an extra monthly payment to see how much interest and time you'd save.
  • How much can I borrow: enter the monthly payment you can afford, the rate and the term to see the largest loan that payment would repay.

Loan payment (EMI) formula

Payment = P × i × (1 + i)N ÷ ((1 + i)N − 1)

P is the amount borrowed, i the monthly interest rate (the annual rate ÷ 12 ÷ 100) and N the number of monthly payments. Every payment is the same, but the split changes: early payments are mostly interest, later ones mostly repay the loan.

To find how much you can borrow for a given payment, the formula is turned around:

Loan amount = Payment × (1 − (1 + i)−N) ÷ i

Worked example

You borrow 25,000 at 7.5% a year over 5 years (60 monthly payments).

The monthly rate is 7.5 ÷ 12 = 0.625%. The payment comes to 500.95 a month. Over 5 years you pay 30,056.92 in total, so the loan costs 5,056.92 in interest.

In the first month, interest is 25,000 × 0.625% = 156.25, so only 344.70 of your payment reduces the loan. Pay an extra 100 a month and the loan is cleared in 49 months instead of 60, saving 1,013.61 in interest.

How amortization works

Each month, interest is charged on the balance you still owe. Your payment covers that interest first, and the rest reduces the balance. As the balance falls, so does the interest, and more of each payment goes to the loan itself. The schedule below the calculator shows this year by year and month by month.

What this calculator doesn't include

  • Arrangement, processing or origination fees
  • Insurance, property taxes or other costs often paid with a mortgage
  • Variable rates that change during the loan

The APR your lender quotes includes some fees, so it's usually higher than the interest rate. Use the interest rate here to calculate the payment.

Frequently asked questions

What does EMI mean?

EMI stands for equated monthly instalment: a fixed payment that covers both interest and repayment, so the loan is fully paid off by the end of the term. It's the same as the monthly payment on a standard repayment loan.

Does a longer term make a loan cheaper?

It lowers the monthly payment but raises the total interest, because you borrow the money for longer. Try a few terms in the calculator to see the trade-off.

Is paying extra each month worth it?

Usually yes, because every extra payment reduces the balance that interest is charged on. Some lenders charge a fee for early repayment, so check your loan terms first.

What's a flat interest rate?

Some lenders quote a flat rate, charged on the original loan amount for the whole term. It looks lower than a normal (reducing balance) rate but costs more. This calculator uses the standard reducing balance method.

Formulas checked 29 October 2026. This calculator is for planning and education, not financial, tax or legal advice.