Loan/EMI calculator
Loan Calculator
Calculate payments for amortized loans, deferred payment loans, and bonds
Amortized Loan: Paying Back a Fixed Amount Periodically
Use this calculator for basic calculations of common loan types such as mortgages, auto loans, student loans, or personal loans.
Results:
| Period | Payment | Principal | Interest | Remaining Balance |
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Loan Basics for Borrowers
Interest Rate: The percentage of a loan paid by borrowers to lenders. Usually expressed in APR (annual percentage rate).
Compounding Frequency: The frequency with which interest is calculated and added to the principal balance. Generally, the more frequently compounding occurs, the higher the total amount due on the loan.
Loan Term: The duration of the loan. Generally, the longer the term, the more interest will be accrued over time, raising the total cost of the loan for borrowers.
FAQs
How is loan EMI calculated?
Loan EMI is calculated using the following formula:
EMI = P × r × (1+r)^n ÷ [(1+r)^n − 1]
Where P is the loan amount, r is the monthly interest rate, and n is the number of monthly installments.
What factors affect loan monthly payments?
Loan amount, interest rate, and loan tenure directly affect the EMI amount.
How can I reduce my loan interest?
You can reduce loan interest by making prepayments, choosing a shorter loan tenure, or negotiating a lower interest rate with your lender.
What is the difference between fixed EMI and reducing balance interest?
In fixed EMI loans, the EMI amount remains the same, but the interest portion reduces over time. In reducing balance loans, interest is calculated only on the remaining principal.