The loan
Optional extra payment shortens the term. No currency — any unit works.
Payment
Yearly amortization
| Year | Principal | Interest | Balance |
|---|
About this loan calculator
This is a reducing-balance EMI calculator: the same annuity math used for a mortgage, car loan or personal loan. Each month, interest is charged on the remaining principal; the rest of the installment pays the balance down.
It is not a bank quote. Origination fees, insurance, taxes, balloon payments and interest-only periods are omitted. There is no currency symbol — 100,000 works in euros, reais, rupiah or anything else.
U.S. federal student loans use different repayment plans; this page is the generic EMI, not that product.
The EMI formula
Monthly rate r is the annual rate divided by 12. For n months:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1).
Example: 100,000 at 5% for 20 years (240 months) → monthly 659.96, 240 payments, total interest 58,389.38. At 0% the payment is simply P ÷ n.
P = principal, r = monthly rate, n = number of months
How to calculate a loan payment
- Enter amount and rate: Type the principal and the annual nominal rate. Currency does not matter.
- Set the term: Years plus optional extra months, or tap 5–30. Add an extra monthly amount if you overpay.
- Read EMI, interest and the table: The installment, total interest and yearly principal/interest split update as you type.
Frequently asked questions
How is the monthly EMI calculated?
It is a reducing-balance annuity: EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), with r = annual rate ÷ 12 and n = months. 100,000 at 5% for 20 years is 659.96 per month.
Do extra monthly payments save interest?
Yes. Extra principal shortens the term because less balance remains to accrue interest. The table and the payment count update; the contractual EMI stays the same unless you refinance.
Is this a mortgage calculator?
The math is the same as a fixed-rate mortgage (French / Price amortization). It does not add property tax, home insurance or closing costs, so a lender’s quote will differ.
Reducing balance or flat rate?
Reducing balance (interest on what is left). A “flat” rate applies the annual percent to the original principal every year and overstates the cost. This page does not use a flat rate.