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Loan / EMI Calculator

Calculate the monthly payment (EMI), total interest, and total cost of any personal or fixed-rate loan.

Last reviewed July 1, 2026

Monthly payment (EMI)
$420
60 payments of $420
Principal
$20,000
Total interest
$5,202
Total repaid
$25,202
Interest as % of loan
26%

Whether it's a personal loan, a home-improvement loan, or any fixed-rate borrowing, the monthly payment — often called the EMI (Equated Monthly Instalment) — is the number that matters for your budget. This calculator turns a loan amount, interest rate, and term into a clear monthly payment and shows the total interest you'll pay.

Adjust any input to compare offers instantly. Borrowing less, finding a lower rate, or choosing a shorter term all reduce what a loan really costs you — this tool shows exactly how much.

What is an EMI and how is it calculated?

An EMI is a fixed payment you make every month until the loan is fully repaid. Each payment covers the interest due that month plus a portion of the original amount borrowed (the principal).

It's calculated with the amortization formula: EMI = P · r · (1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of months. Because the payment is fixed, the split between interest and principal shifts over time — more interest at the start, more principal toward the end.

APR vs. interest rate

The interest rate is the cost of borrowing the money. The APR (Annual Percentage Rate) also folds in certain fees, so it's usually a truer comparison figure between lenders. When comparing loans, compare APRs where possible, and enter the interest rate here to see the payment.

Watch for arrangement or origination fees that aren't in the rate. A loan with a slightly lower rate but a large upfront fee can cost more than a higher-rate loan with no fee.

Tips before you sign

Check for early-repayment penalties — some loans charge you for paying off early, which cancels out the interest you'd save.

Make sure the monthly payment fits comfortably alongside your other commitments; lenders look at your total debt-to-income ratio, and so should you.

Frequently asked questions

What does EMI stand for?

EMI means Equated Monthly Instalment — a fixed amount you pay each month that covers both interest and part of the loan balance until the loan is fully paid off.

How can I lower my monthly loan payment?

Borrow less, secure a lower interest rate, or choose a longer term. A longer term lowers the monthly payment but increases the total interest you pay, so weigh both.

Does paying extra reduce my loan faster?

Yes. Extra payments go straight to the principal, which shortens the loan and cuts the total interest — provided your lender allows penalty-free overpayments.

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Disclaimer: Loan / EMI Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.