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Loan and EMI calculator

Monthly payment, total interest and total repaid for any loan amount, rate and term.

How it works

This calculates the monthly payment on an amortising loan — the standard kind where every payment is the same size and each one covers the interest accrued that month plus a slice of the principal. Mortgages, car loans and most personal loans work this way. In India and much of South Asia the monthly payment is called the EMI, or equated monthly instalment; the arithmetic is identical.

The formula is P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r is the monthly interest rate (the annual rate divided by 12), and n is the number of months.

The figure worth looking at is not the monthly payment but the total interest. Stretching a loan over a longer term lowers the monthly payment and raises the total cost, often dramatically — and because early payments are almost entirely interest, the principal barely moves for the first few years of a long loan.

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Common questions

How is a monthly loan payment calculated?
Using the amortisation formula P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r is the annual rate divided by 12, and n is the term in months.
What is an EMI?
Equated monthly instalment — the fixed monthly payment on an amortising loan. It is the same calculation as a standard mortgage or car loan payment, under a different name.
Why does a longer loan cost so much more?
Interest accrues on the outstanding balance every month, so a longer term means more months of interest on a balance that falls more slowly. The monthly payment drops but the total paid rises.

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