Loan Calculator
Calculate monthly payments, total interest, and total payment
đ Formula
EMI = P à r à (1+r)âŋ / ((1+r)âŋ - 1)
P = Loan Amount, r = Monthly Interest Rate, n = Number of Months
đ Loan Summary
What is a Loan Calculator?
A loan calculator helps you estimate your monthly payments, total interest, and total loan cost. Whether you're planning a home loan, car loan, or personal loan, our free calculator gives you instant results.
Formula
EMI = P à r à (1+r)âŋ / ((1+r)âŋ - 1)
P = Loan Amount, r = Monthly Interest Rate, n = Number of Months
Example
Example: Calculate EMI for a $10,000 loan at 7% interest for 5 years
Monthly interest rate: 7% / 12 = 0.00583
Number of months: 5 Ã 12 = 60
EMI = 10000 Ã 0.00583 Ã (1.00583)^60 / ((1.00583)^60 - 1)
Monthly Payment: $198.01 | Total Interest: $1,880.60 | Total Payment: $11,880.60
Common Uses
- â¸Home Loans: Calculate mortgage payments before buying a house
- â¸Car Loans: Plan your auto loan budget and compare rates
- â¸Personal Loans: Estimate monthly payments for personal expenses
- â¸Business Loans: Project loan costs for business investments
- â¸Financial Planning: Compare loan offers and make informed decisions
Frequently Asked Questions
What is EMI (Equated Monthly Installment)?
EMI is the fixed monthly payment you make to repay a loan. It includes both principal and interest components.
How is the monthly payment calculated?
The formula uses the loan amount, monthly interest rate, and number of months to calculate a fixed monthly payment that covers both principal and interest.
What affects my monthly payment the most?
The loan amount and interest rate have the biggest impact. A higher loan amount or higher interest rate increases your monthly payment. Longer terms reduce monthly payments but increase total interest paid.