To calculate a loan payment, enter the price, your down payment, the yearly interest rate and the term in years, then select Calculate Loan. The calculator uses the standard amortization formula to show the monthly payment (EMI), total interest, total repaid and the payoff month, plus a schedule of every payment.
How to use the loan calculator
- Pick a mode and loan type. Keep Monthly Payment selected to find your EMI, or switch to Affordability or Payoff. Choosing a Loan Type such as Home / Mortgage fills in typical sample values you can overwrite.
- Enter the core numbers. Fill in Asset / Loan Price, Interest Rate % / Year, Loan Term (Years) and, if needed, Extra Months. Set the Loan Start Date so the schedule shows real months.
- Add upfront costs and credits. Down / Upfront Payment and Trade-In / Credit reduce the amount you borrow. Rolled Fees / Closing Costs add to it, and Purchase Tax % can be rolled in with the checkbox.
- Calculate. Select Calculate Loan to see the monthly payment, total interest, payoff date and the amortization schedule. Use Download PDF or Copy Summary to keep the result.
How is a monthly loan payment calculated?
Fixed-rate loans use the amortization formula. It's the same formula banks use for an EMI (equated monthly installment):
M = P x r(1+r)^n / ((1+r)^n - 1)
- P is the amount financed (price minus down payment and trade-in, plus any rolled fees).
- r is the monthly rate: the yearly rate divided by 12, then by 100.
- n is the number of monthly payments: years x 12 plus any extra months.
Worked example, using the default car loan: a $30,000 price with $3,000 down and $500 of fees gives P = $27,500. At 6.5% a year, r = 0.065 / 12 = 0.0054167. Over 5 years, n = 60, so (1+r)^60 = 1.38282. That gives M = 27,500 x 0.0054167 x 1.38282 / 0.38282 = $538.07 a month.
Sixty payments of $538.07 add up to $32,284.14, so the loan costs $4,784.14 in interest. In month one, $148.96 of the payment is interest (27,500 x 0.0054167) and only $389.11 reduces the balance. If the rate is 0%, the calculator simply divides P by n.
Using it as a loan payoff calculator
There are two ways to see how fast you can clear a loan.
- Extra Monthly Payment works in any mode and goes straight to principal. Adding $50 a month to the $27,500 example above pays it off in 55 months instead of 60 and saves about $487 in interest.
- Payoff mode builds the schedule from a Desired Monthly Payment you type. If that payment doesn't cover the first month's interest, you'll see a "Payment too low" warning.
The Extra Payment Effect panel shows the months and interest saved. On a real loan, check that the lender applies extra payments to principal and doesn't charge a prepayment fee.
How much can I borrow? The affordability mode
Affordability mode works the formula backwards. Enter an Affordable Monthly Budget, a rate and a term, and it solves for the largest amount you could finance: P = M x ((1+r)^n - 1) / (r(1+r)^n).
When Include taxes & insurance in monthly budget is ticked, the monthly share of property tax, insurance and HOA charges comes off your budget first. With the default $700 budget and $1,200 a year of insurance, $600 is left for the loan. At 6.5% over 60 months, that supports about $30,665 of borrowing.
Loan amortization calculator: reading the schedule
The schedule lists each payment with its date, the payment amount, the principal and interest parts, any extra payment, the running total paid and the remaining balance. Untick Show full amortization schedule to see only the first 12 rows on screen. The PDF download always includes every row plus a summary.
Interest is charged on the balance still owed, so early payments are mostly interest. On the Sample Home preset ($284,500 financed at 6.75% for 30 years), the payment is about $1,845 and total interest is roughly $379,794.
| Preset | Sample price | Sample rate | Sample term |
|---|---|---|---|
| Car Loan | $30,000 | 6.5% | 5 years |
| Home / Mortgage | $350,000 | 6.75% | 30 years |
| Personal Loan | $12,000 | 11.5% | 3 years |
| Student Loan | $25,000 | 5.25% | 10 years |
| Business Loan | $80,000 | 9.25% | 7 years |
These are starting values for trying the tool, not current market rates. Replace them with the figures from your loan offer.
What the loan calculator assumes
- The rate is fixed for the whole term and interest is worked out monthly (yearly rate divided by 12).
- The first payment is dated one period after the Loan Start Date: a month later on the monthly schedule, or two weeks later on the biweekly one. If the start date is the 31st, shorter months use their last day.
- Biweekly means half the monthly payment every 14 days, with interest at the yearly rate divided by 26. That is 26 half payments, or 13 full payments, a year. On the default car loan it clears the $27,500 in 119 payments, about 4 years 7 months, and saves about $487 in interest compared with 60 monthly payments. Check that your lender applies biweekly payments as they arrive; some hold them and post once a month.
- Fees count only if you enter them. The result isn't an APR quote.
This calculator gives estimates, not financial advice. To compare offers in another currency, use the currency converter, and the percentage calculator helps with down-payment percentages.
Frequently asked questions
How do I calculate EMI on a loan?
EMI = P x r(1+r)^n / ((1+r)^n - 1), where P is the amount borrowed, r is the yearly rate divided by 1,200 and n is the number of months. Enter those numbers above and select Calculate Loan to get the EMI and a full schedule.
Can I use this as a personal loan calculator?
Yes. Choose Personal Loan as the Loan Type, enter the amount, rate and term from your offer, and add any origination fee under Rolled Fees / Closing Costs if it's added to the balance.
Can I download the amortization schedule?
Yes. After calculating, select Download PDF. The file lists every payment with principal, interest, extra amount and balance, followed by a short summary.
Is this loan payment calculator accurate?
It uses the standard fixed-rate amortization formula, so it should match a lender's quote to within rounding. Variable rates, fees and insurance can change the real payment, so treat the results as estimates, not financial advice.
Are my loan details saved or sent anywhere?
No. All calculations run in your browser, and nothing you type is stored or uploaded.