Loan / EMI Calculator

How the monthly payment is calculated

This calculator uses the standard amortization formula: M = P·r·(1+r)ⁿ / ((1+r)ⁿ−1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12) and n the number of monthly payments. It's the same equated-monthly-installment (EMI) formula banks use for fixed-rate mortgages, auto loans and personal loans. The schedule shows, for each year, how much of your payments went to interest versus principal and the remaining balance.

Frequently asked questions

What currency does it use?

None — the math is identical in dollars, euros, pounds or rupees. Enter the amount in your currency and read the results the same way.

Why does so much of the early payments go to interest?

Interest is charged on the outstanding balance, which is largest at the start. As the balance falls, each fixed payment covers less interest and repays more principal — that's why extra payments early in the term save the most.

Does it handle 0% interest?

Yes — at 0% the payment is simply the loan amount divided by the number of months.

Is this exact to the cent?

It matches the standard formula, but lenders round payments and may use slightly different day-count conventions, so your official schedule can differ by a few cents.