Loan & EMI Calculator
Enter the loan amount, the yearly interest rate and the term to get the fixed monthly instalment (EMI), the total interest and a month-by-month or year-by-year repayment schedule. Add an extra monthly payment to see how much sooner the loan ends and how much interest it saves.
Repayment schedule
How the monthly instalment is worked out
Most bank, car and housing loans are repaid in equal monthly instalments on a reducing balance: each month you pay interest on what you still owe, and the rest of the instalment pays the loan down. The instalment that clears the loan exactly in n months is:
Each row of the schedule then follows three steps: interest = balance × r, principal = EMI − interest, new balance = balance − principal. Early rows are mostly interest because the balance is at its largest; the last rows are mostly principal.
Paying extra
An extra payment goes straight to the principal. The instalment stays the same, but later months are charged interest on a smaller balance, so the loan finishes early. The calculator keeps the original EMI and shows how many payments you save and how much less interest you pay. Before you overpay, ask your lender whether there is a prepayment charge.
Worked example: 1,000,000 over 5 years at 12%
Month 1: interest is 1,000,000 × 0.01 = 10,000, so only 12,244.45 of the first instalment reduces the loan.
Pay 5,000 a month extra and the same loan is cleared in 46 payments instead of 60, with 82,391.50 less interest. Type 5000 in the extra payment box above to see the new schedule.
Comparing loan offers
| If a lender quotes… | What to check |
|---|---|
| A flat rate | Interest is charged on the full amount for the whole term, so it costs far more than the same reducing-balance rate. Ask for the reducing-balance (effective) rate and enter that here. |
| A rate tied to a benchmark (for example KIBOR + 3%) | The rate will change when the benchmark changes. Enter today's total rate to see today's instalment, then try a higher rate to see what a rise would cost. |
| A processing fee or insurance | These are not in the EMI. Add them to the total repaid when you compare offers. |
| A lower instalment over a longer term | Try both terms above: a longer term lowers the EMI but usually raises the total interest a lot. |
Frequently asked questions
How is EMI calculated?
Why do I pay more interest at the start of a loan?
Does paying extra each month really save money?
What is the difference between a flat rate and a reducing-balance rate?
Can I use this for a car loan, home loan or personal loan?
What happens with a 0% interest rate?
What this calculator does not do
- It assumes a fixed yearly rate, interest charged monthly on the remaining balance, and equal monthly instalments.
- It does not include processing fees, insurance, taxes, late charges or prepayment penalties, so the lender's figures can differ.
- Islamic financing (for example diminishing musharakah or ijarah) is priced as rent or profit rather than interest; the schedule shape can be similar, but use the bank's own quote.
- It is a planning tool, not financial advice.