Finance
Loan Calculator
Calculate your monthly EMI and total repayment with ease.
INR
%
Years
Monthly EMI
₹10,624/ month
Reducing-balance method. Actual lender figures may vary.
Principal₹5,00,000
Total Interest₹1,37,411
Total Payment₹6,37,411
Finance
Calculate your monthly EMI and total repayment with ease.
Monthly EMI
₹10,624/ month
Reducing-balance method. Actual lender figures may vary.
A loan calculator is a financial tool that computes monthly or periodic payments based on three inputs: the principal (amount borrowed), the annual interest rate, and the loan term (in months or years). It applies the amortization formula to show not just your payment amount, but also how much of each payment goes toward principal versus interest, revealing the true cost of borrowing and how your debt decreases over time.
The calculator uses the standard amortization formula to divide your total borrowed amount across equal monthly payments. It calculates how much interest accrues each month (based on the remaining balance and annual rate), and the remainder of your payment reduces the principal. As months pass, less of each payment goes to interest and more goes to principal, until the loan is fully repaid. A loan amortization schedule shows this month-by-month breakdown so you can see exactly when you'll owe what.
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]P is the principal (loan amount), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments (years × 12). This formula ensures your monthly payment never changes and covers both principal and interest over the loan term.
| Input | Result | Notes |
|---|---|---|
| Principal: £200,000 | Annual Interest: 5% | Term: 30 years (360 months) | Monthly Payment: £1,073.64 | Total Interest Paid: £186,512 | Total Cost: £386,512 | A typical 30-year mortgage showing how interest roughly doubles the cost of the home over three decades. |
| Principal: £25,000 | Annual Interest: 7.5% | Term: 5 years (60 months) | Monthly Payment: £500.38 | Total Interest Paid: £2,022.80 | Total Cost: £27,022.80 | A car loan example—shorter term, so much less total interest despite a higher rate than a mortgage. |
| Principal: £10,000 | Annual Interest: 12% | Term: 3 years (36 months) | Monthly Payment: £332.14 | Total Interest Paid: £1,957.04 | Total Cost: £11,957.04 | A personal loan with a higher rate—the total interest is nearly 20% of the borrowed amount over just 3 years. |
A loan calculator computes your monthly payment and total cost in seconds. An amortization schedule is the detailed table it produces, showing every payment month-by-month and how much principal and interest each payment covers. The calculator generates the schedule.
No—this calculator assumes a fixed interest rate that never changes. If your loan has a variable or adjustable rate (common in mortgages after an initial fixed period), the calculator will only show the payment during the fixed-rate phase. Consult your lender for variable-rate estimates.
The calculator shows the interest and principal payment only. Your actual payment may include property taxes, homeowners insurance, mortgage insurance (PMI), or HOA fees—all of which your lender adds on top. Check your loan agreement for the full breakdown.
You'll reduce the loan term and pay significantly less interest. Use a 'pay off early' scenario in the calculator, or manually adjust the term—you'll see how even an extra £25 per month compounds into years of savings.
Yes, for any fixed-rate loan: mortgages, car loans, personal loans, student loans, and business loans all use the same amortization formula. The only requirement is a fixed interest rate and a fixed monthly payment.
Run a calculation at your lender's quoted rate, then run it again at 0.5% or 1% lower. Show the difference in total interest to your lender and ask if they can match a competitor's rate—many will, and the savings are tangible.