Lending Calculator
Calculate your loan EMI (monthly payment), total interest, and view detailed amortization schedule. Compare different loan types and terms to find the best option.
Table of Contents
▼ Select loan type and enter values, then click Calculate
Loan Type
Total amount you're borrowing
Annual percentage rate (%)
Duration to repay the loan
One-time fee charged by lender (amount or %)
Most loans use compound (EMI method)
Loan Payment Breakdown
📊 Monthly EMI (Payment):
$0.00
Loan Amount
$0.00
Total Interest
$0.00
Total Amount Payable
$0.00
Tenure
0 months
Interest Rate (Annual):
0.00%
Number of Payments:
0
✓ Total Interest Paid:
$0.00
Payment #
Principal
Interest
Balance
Loan Calculation Formulas
EMI (Equated Monthly Installment) Formula
EMI = P × r × (1 + r)^n / [(1 + r)^n - 1]
Where:
P = Principal (loan amount)
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Number of monthly payments (tenure in months)
Where:
P = Principal (loan amount)
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Number of monthly payments (tenure in months)
Example Calculation
Loan Amount (P): $100,000
Annual Interest Rate: 8.5%
Loan Tenure: 5 years (60 months)
Monthly Interest Rate (r): 8.5 ÷ 12 ÷ 100 = 0.00708
Number of Payments (n): 60
EMI = 100,000 × 0.00708 × (1.00708)^60 / [(1.00708)^60 - 1]
= $2,051.65
Annual Interest Rate: 8.5%
Loan Tenure: 5 years (60 months)
Monthly Interest Rate (r): 8.5 ÷ 12 ÷ 100 = 0.00708
Number of Payments (n): 60
EMI = 100,000 × 0.00708 × (1.00708)^60 / [(1.00708)^60 - 1]
= $2,051.65
Total Amount Payable
Total Amount Payable = (EMI × Number of Payments) + Processing Fee
Example: ($2,051.65 × 60) = $123,099
Example: ($2,051.65 × 60) = $123,099
Total Interest Paid
Total Interest = Total Amount Payable - Principal - Processing Fee
Example: $123,099 - $100,000 = $23,099
Example: $123,099 - $100,000 = $23,099
Simple Interest Formula (Alternative)
Simple Interest = (P × R × T) / 100
Total Amount = P + Simple Interest
Monthly Payment = Total Amount / Number of Months
Note: Simple interest is less common for loans; compound (EMI) is standard.
Total Amount = P + Simple Interest
Monthly Payment = Total Amount / Number of Months
Note: Simple interest is less common for loans; compound (EMI) is standard.
Monthly Principal & Interest Breakdown
Monthly Interest = Outstanding Balance × Monthly Rate
Monthly Principal = EMI - Monthly Interest
New Balance = Previous Balance - Monthly Principal
Monthly Principal = EMI - Monthly Interest
New Balance = Previous Balance - Monthly Principal
Effective Annual Rate (EAR)
EAR = (1 + r)^12 - 1
Where r = Monthly interest rate
Example: EAR for 8.5% APR = (1.00708)^12 - 1 = 8.84%
Where r = Monthly interest rate
Example: EAR for 8.5% APR = (1.00708)^12 - 1 = 8.84%
Types of Loans
Personal Loans
Purpose: Unsecured loans for any personal expense. Terms: 2-7 years typical. Interest Rates: 5-36% depending on credit score. Pros: Fast approval, flexible use. Cons: Higher rates for poor credit.
Auto Loans
Purpose: Secured loans to purchase vehicles. Terms: 3-7 years typical. Interest Rates: 2.5-10% depending on credit. Pros: Lower rates than personal loans. Cons: Vehicle serves as collateral.
Student Loans
Purpose: Education financing (federal or private). Terms: 10-25 years possible. Interest Rates: 3.76%-8% (federal), variable (private). Pros: Income-driven repayment options. Cons: Long-term commitment.
Home Loans (Mortgages)
Purpose: Purchase or refinance real estate. Terms: 15-30 years typical. Interest Rates: 2.5-8% depending on market. Pros: Lowest rates, tax deductible. Cons: Home is collateral, long commitment.
Business Loans
Purpose: Start or expand business. Terms: 2-10 years typical. Interest Rates: 3-20% depending on type. Pros: Flexible terms. Cons: Higher rates than personal loans.
Payday Loans
Purpose: Short-term emergency cash. Terms: 2 weeks to 1 month. Interest Rates: Very high (300-400% APR). Pros: Fast approval. Cons: Expensive, debt trap risk.
⚠️ Loan Selection Tips: Compare APR across lenders (not just interest rate), understand the total cost, check for hidden fees, and ensure you can afford the monthly payment.
Loan Payment Comparison
This table shows how loan amount, interest rate, and tenure affect monthly EMI:
| Loan Amount | Interest Rate | Tenure | Monthly EMI | Total Interest | Total Payable |
|---|---|---|---|---|---|
| $50,000 | 6% | 36 months | $1,521.10 | $4,759.62 | $54,759.62 |
| $100,000 | 8% | 60 months | $2,027.64 | $21,658.58 | $121,658.58 |
| $150,000 | 7% | 84 months | $2,260.98 | $39,922.02 | $189,922.02 |
| $200,000 | 5% | 120 months | $2,121.31 | $54,556.70 | $254,556.70 |
| $100,000 | 10% | 36 months | $3,226.72 | $16,161.91 | $116,161.91 |
Key Insights
- Higher Interest Rates: Increase monthly EMI and total interest significantly
- Longer Tenure: Reduces monthly EMI but increases total interest paid
- Shorter Tenure: Increases monthly EMI but saves on interest
- 1% Rate Difference: Can add $50-200/month depending on loan amount and term
Frequently Asked Questions
What is EMI and how is it calculated?
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EMI (Equated Monthly Installment) is the fixed amount you pay each month on a loan. It includes both principal repayment and interest. Calculated using the formula: EMI = P × r × (1+r)^n / [(1+r)^n - 1], where P is principal, r is monthly rate, and n is number of months.
What's the difference between APR and interest rate?
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Interest rate is the cost of borrowing money expressed as a percentage. APR (Annual Percentage Rate) includes interest rate plus other costs like origination fees and insurance. APR provides a more complete picture of the total cost. Lenders must disclose APR for comparison.
What is simple interest vs. compound interest?
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Simple interest is calculated only on the principal: I = P × R × T. Compound interest (used in EMI) is calculated on principal plus accumulated interest. Most loans use compound interest because it's more accurate for monthly payments. Simple interest is rare for personal loans.
Why does early payment reduce total interest?
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Early payments reduce the outstanding principal faster, which means less interest accrues on the remaining balance. Each month, interest is calculated on the outstanding balance, so lower balance = lower interest. Paying extra principal accelerates this reduction.
What should I consider when comparing loans?
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Compare: (1) APR, not just interest rate, (2) Total amount payable, (3) Monthly EMI affordability, (4) Origination/processing fees, (5) Prepayment penalties, (6) Loan tenure flexibility, (7) Customer service reputation. Use this calculator to compare different options.
What is an amortization schedule?
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An amortization schedule shows each monthly payment broken down into principal and interest components, plus the remaining balance. Early payments have more interest; later payments have more principal. The schedule shows how your loan balance decreases over time.
Can I reduce the total interest by changing the tenure?
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Yes. Shorter tenure = less total interest but higher monthly EMI. For example, a 3-year loan has less interest than a 5-year loan on the same amount and rate. However, ensure the monthly EMI is affordable. Extra payments toward principal also reduce total interest.
Is this calculator accurate for all loan types?
This calculator uses standard EMI formula for fixed-rate loans. Actual payments may vary based on: variable rate changes, grace periods, processing fees, insurance, tax implications, and lender-specific calculations. Use this for general estimation; contact your lender for exact figures and terms.