Estimate your monthly payment, total interest, and total repayment for any loan or mortgage.
Loans with a fixed rate use the standard amortization (EMI) formula, where every monthly payment is the same and covers both interest and principal.
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 ÷ 100), and n is the number of monthly payments (years × 12).
Most fixed-rate loans are amortized, meaning you pay the same total amount every month, but the split between interest and principal changes over time. Early in the loan, most of each payment goes toward interest because the outstanding balance is large. As the balance shrinks, more of each payment chips away at the principal. This is why making extra payments early in a loan's life has an outsized effect — you reduce the balance that interest is calculated on for the entire remaining term. By the final payments, almost the entire amount is principal.
Two levers control the cost of a loan: the interest rate and the term. A lower interest rate reduces both your monthly payment and your total interest. A longer term lowers your monthly payment but increases the total interest you pay, because you're borrowing the money for more time. For example, a $20,000 loan at 6.5% costs about $391 a month over 5 years ($3,464 total interest), but only about $243 a month over 10 years — yet that longer term costs roughly $9,160 in interest, more than double. Use the calculator to compare a few terms side by side before committing.
The interest rate is the cost of borrowing the principal, while the APR (Annual Percentage Rate) includes the interest rate plus certain fees, such as origination charges, expressed as a yearly percentage. APR gives a more complete picture of a loan's true cost and is the better number for comparing offers from different lenders. This calculator uses the interest rate you enter; if you want to factor in fees, enter the APR instead for a more conservative estimate.
This calculator works for any amortizing fixed-rate loan, including personal loans, auto loans, student loans, and mortgages. Keep in mind that mortgages and auto loans often bundle in extras — property taxes, homeowners or auto insurance, PMI, or registration fees — that aren't part of the principal-and-interest payment shown here. For a complete monthly housing or vehicle cost, add those items on top of the estimate.
Fixed-rate loans use the amortization formula, which spreads the principal and interest evenly across every month so your payment stays constant. The payment depends on three things: the loan amount, the monthly interest rate (annual rate ÷ 12), and the number of monthly payments (years × 12).
EMI stands for Equated Monthly Installment — the fixed sum you pay each month until the loan is fully repaid. Each EMI covers both interest on the remaining balance and a portion of the principal.
A longer term lowers your monthly payment, which can ease cash flow, but it increases the total interest you pay over the life of the loan. Shorter terms cost more per month but far less overall.
Extra payments go straight toward the principal, reducing the balance that future interest is charged on. Making extra payments early in the loan has the biggest impact, often shortening the term by years and saving a substantial amount of interest.
It accurately calculates the principal-and-interest portion of a mortgage. However, a real mortgage payment usually also includes property taxes, homeowners insurance, and sometimes PMI or HOA fees, so your total housing payment will be higher than the figure shown here.