Loan / EMI Calculator
Estimate fixed-rate loan payments with a standard amortization formula. Enter amount, annual rate, and term to see monthly payment, total interest, and a month-by-month schedule. Variable rates (e.g. Euribor) are not modeled here—use a fixed effective rate for an estimate.
Written and maintained by Ricardo Rodrigues · Last updated · What changed
Who this calculator is for
This page estimates a fixed monthly payment on a fixed annual rate over a fixed term, then splits that payment into interest and principal. It is for a personal loan, a car loan, or an illustrative mortgage before you talk to a lender. The €25,000 example at 6.5% for five years is about €489 a month. The first month’s interest is about €135. The last month’s interest is a couple of euros. The payment did not change. The balance it was charged on did.
It is not a variable-rate model. Euribor plus a spread can be typed as today’s all-in rate for a what-if. When the index moves, this schedule does not. It is also not a consumer-credit disclosure. Fees, insurance, and a promotional rate that steps up later belong beside the schedule, in euros or as a second run.
Loan / EMI Calculator
Fixed-rate loan with monthly payments and full amortization schedule
Result
$489.15/mo
Total paid $29,349.22 · Interest $4,349.22
M = P × r(1+r)^n ÷ ((1+r)^n − 1) · r = annual/12 · n = years×12
Monthly payment
$489.15
Total interest
$4,349.22
Total of payments
$29,349.22
60 monthly payments · fixed rate (not Euribor / variable)
Amortization schedule
| # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $489.15 | $353.74 | $135.42 | $24,646.26 |
| 2 | $489.15 | $355.65 | $133.50 | $24,290.61 |
| 3 | $489.15 | $357.58 | $131.57 | $23,933.03 |
| 4 | $489.15 | $359.52 | $129.64 | $23,573.51 |
| 5 | $489.15 | $361.46 | $127.69 | $23,212.05 |
| 6 | $489.15 | $363.42 | $125.73 | $22,848.63 |
Comparison table
| Rate | 15 years / month | 30 years / month | Total interest 15y | Total interest 30y |
|---|---|---|---|---|
| 3% | 690.58 | 421.6 | 24,304.7 | 51,777.45 |
| 5% | 790.79 | 536.82 | 42,342.85 | 93,255.78 |
| 7% | 898.83 | 665.3 | 61,789.09 | 139,508.9 |
Fixed-rate amortising loan, monthly payments, no fees. Longer terms lower the payment and raise the total interest.
About this loan / emi
This page estimates a fixed monthly payment for a fixed annual rate and a fixed term, then splits that payment into interest and principal over time. On €25,000 at 6.5% for five years the payment is about €489. The first month’s interest is about €135 and the principal portion is the rest. By the last month the interest is a couple of euros. The payment did not change. The balance it was charged on did.
Type the nominal rate the contract uses to compute interest, not a comparison APR that was lifted by fees, unless you know the APR equals that nominal rate. Fees belong beside the schedule, in euros. A variable rate such as Euribor plus a spread can be typed as today’s all-in rate for a what-if, not as a forecast.
How to use each field
- Loan amount
- The principal the interest is charged on at the start. Fees that are added to the amount you owe belong in this box. Fees you pay in cash up front do not, but they still change the true cost. The APR guide is about that distinction.
- Annual interest rate
- The nominal annual rate the contract uses to compute each month’s interest, divided by 12 inside the formula. Do not drop in an APR that has been lifted by an arrangement fee unless you know the APR equals that nominal rate. A higher comparison APR will overstate the installment and you will still owe the fee.
- Term (years)
- Converted to months by multiplying by 12. Five years is 60 payments. A longer term lowers the payment and usually raises total interest, because the balance stays larger for longer. The page does not do interest-only periods or balloon payments.
- The schedule
- Each row is one month: payment, interest, principal, balance. Interest is the remaining balance times the monthly rate. Principal is the rest of the payment. The last row may adjust by a few cents so the balance ends at zero. A lender’s rounding rule can differ by those cents. The shape — interest-heavy at the start, principal-heavy at the end — is the part that survives the rounding.
When to use this calculator
- You want the installment for a personal loan, car loan, or illustrative fixed-rate mortgage before you talk to a lender.
- You want to see how much total interest a longer term adds, not just how much the monthly payment falls.
- You want a picture of why early payments carry more interest than late ones.
Worked examples
| Question | Answer |
|---|---|
| $25,000 at 6.5% for 5 years | About $489/mo |
| $10,000 at 8% for 3 years | About $313/mo |
| $200,000 at 4% for 30 years | About $955/mo (illustrative) |
Walkthroughs
€25,000 at 6.5% for five years, and the first year of the schedule
Loan amount 25000, annual rate 6.5, term 5. Monthly payment about €489. Over 60 months you pay on the order of €29,350, of which about €4,350 is interest. After 12 payments you have paid about €5,870 and you still owe roughly €20,700. You are not halfway. You have made a fifth of the payments and retired well under a fifth of the principal, because the early payments were busy paying interest.
That is the conversation to have before stretching the term to make the monthly number comfortable. Run a longer term and watch total interest, not just the payment. The lower payment is real. So is the extra interest.
A fee that makes the APR a bad thing to type
Suppose the lender quotes 6.5% and also an arrangement fee that lifts a comparison APR to 7.4%. The installment is computed from 6.5% on the amount you owe. Type 6.5 if 6.5 is the rate on the balance. Put the fee next to the schedule as money you pay, or include it in the loan amount if it is financed. Typing 7.4 produces a higher payment than the contract will debit, and you will think the calculator disagrees with the lender. The APR-versus-interest-rate guide walks through why both percents can be honest and still not be interchangeable.
Formula
| Goal | Formula |
|---|---|
| Monthly payment | M = P × r(1+r)^n ÷ ((1+r)^n − 1), r = annual/12 |
Monthly rate r = annual percent / 100 / 12. Number of payments n = years × 12. Payment M = P × r × (1 + r)^n / ((1 + r)^n − 1). When the rate is zero, the payment is simply principal divided by n. On €25,000 at 6.5% for 60 months, r ≈ 0.0054167 and the payment is about €489.15. Month one interest ≈ 25,000 × 0.0054167 ≈ €135.42, so principal that month is about €353.73 and the balance falls to about €24,646.
Total interest is not “rate times principal times years.” That product would be simple interest on the original principal for the whole term: 25,000 × 0.065 × 5 = €8,125. The amortizing loan charges interest on what you still owe, which shrinks. You pay less interest than that cartoon — on this example, on the order of €4,350 — and you pay it on a schedule that is front-loaded. Early extra payments, if the contract allows them without a penalty, knock down the balance that later interest is charged on. This page does not apply extra payments. The schedule assumes you pay exactly the installment.
A five-year loan and a compound-interest projection are easy to confuse because both mention a rate and a term. Compound interest on a deposit grows a balance you own. A loan payment is the amount that drives a balance you owe down to zero. The compound calculator will not reproduce this schedule unless you already know the payment and force the cash flows. Use this page for the payment.
Mistakes this page will not catch for you
Typing APR when a fee made it higher than the nominal rate
The payment formula uses the interest rate applied to the balance. An APR that includes an arrangement fee will overstate the installment if you drop it into the rate box, and you will still owe the fee. Read which percent is which.
Treating a variable-rate quote as fixed
If the contract resets with an index, one run of this calculator is one assumed rate. Run a higher rate as a stress test. The schedule will not update itself when the index moves.
Treating a promotional rate as if it lasted the whole term
A 1.9% rate for twelve months that then becomes 8% is two loans glued together. One run at 1.9% for the full term flatters the offer. Run the introductory slice, note the balance that remains, and run the rest of the term at the follow-on rate. The page will not switch rates in the middle for you.
FAQ
- What is EMI?
- Equated Monthly Installment—the fixed monthly payment that covers interest and principal over the loan term.
- Does this support Euribor or variable rates?
- This calculator uses a fixed annual rate. For floating rates, enter an assumed average or current all-in rate (index + spread) as an approximation.
- Why is total interest not “rate times principal times years”?
- That product is simple interest on the original principal for the whole term. An EMI loan charges interest on the remaining balance, which shrinks every month. You pay less interest than the simple-interest cartoon, and you pay it on a schedule that is front-loaded.
- Will extra payments show up automatically?
- Not unless you model them. Extra principal usually reduces later interest, subject to the contract’s prepayment rules. The standard schedule assumes you pay exactly the installment and nothing more.
- What is EMI?
- Equated monthly installment: a payment that stays the same each month while the mix of interest and principal inside it changes. “Equated” refers to the payment, not to an equal split between interest and principal.
- Will a variable rate such as Euribor show up automatically?
- No. Type an assumed all-in rate, index plus spread, and treat the schedule as a what-if. Run a higher rate as a stress test. Nothing on this page watches the index.
- Why does the last payment differ by a few cents?
- So the balance can land on zero after rounding each month to the cent. A lender may round differently and send a final payment that is slightly off the regular installment. The total interest is the sum of the interest column, not the rate times the original principal.
Guides that go with this calculator
- How Loan EMI WorksHow equated monthly installments split interest and principal, with a worked amortization, extra-payment examples, and the limits of a fixed-rate loan calculator.
- APR versus Interest RateWhy a loan’s nominal interest rate and its APR can differ, what fees do to the comparison, and what a fixed-rate EMI calculator still will not show.
- Compound Interest BasicsHow compounding frequency and regular contributions change a balance, with a simple-interest contrast and the assumptions a calculator quietly makes.
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