What the numbers mean
- Monthly payment (EMI) — the fixed amount you pay each month, covering both interest and part of the principal.
- Principal — the amount you borrow. Early payments go mostly to interest; later ones chip away more at the principal.
- Total interest — everything the loan costs you on top of the principal over the full term.
- Total repaid — principal plus total interest: the full amount you'll have paid by the end.
The amortization schedule
Open Show amortization schedule for a month-by-month breakdown of every payment:
- Interest and principal per month — on a reducing-balance loan, interest is charged on the remaining balance, so early payments are mostly interest and later ones mostly principal.
- Running balance — how much you still owe after each payment, falling to zero at the end of the term.
Use the Interest method selector to switch between reducing balance (interest on what you still owe — the standard for housing and most bank loans) and flat rate (interest charged on the full original amount for the whole term, common on some car and personal loans).
Frequently asked questions
How is the monthly payment calculated?
It uses the standard EMI (equated monthly instalment) formula, which spreads the principal and interest evenly across every month of the term at a fixed rate. Because the rate is fixed, each payment is the same size.
Should I enter a yearly or monthly interest rate?
Either — use the Rate period selector to match how your rate is quoted. Most lenders advertise an annual rate, so Per year is the default. If your quote is a monthly rate, switch to Per month and enter it directly — a yearly rate is simply the monthly rate spread across 12 months. You can also set the term in years or months to match your loan.
Why is so much of an early payment interest?
On a reducing-balance loan, interest is charged on the outstanding balance, which is highest at the start. As the balance shrinks, the interest portion of each fixed payment falls and more goes to principal.
What's the difference between reducing-balance and flat-rate interest?
With reducing balance, interest is charged only on the amount you still owe, so the interest portion of each payment falls over time. With flat rate (add-on interest), the interest is calculated once on the full original amount and split evenly across the term — every month's interest is the same. A flat rate looks cheaper than it is: the same headline rate costs you noticeably more than a reducing-balance loan, because you keep paying interest on money you've already repaid.
Can I use it for a housing or car loan?
Yes. It works for any fixed-rate loan — housing, auto, or personal — in any currency, as long as the rate stays constant over the term.
Does the estimate include fees, taxes, or insurance?
No. It covers principal and interest only. Real loans may add processing fees, insurance, or taxes, so your lender's actual quote can be higher. Use this as a budgeting estimate.
What's the difference between a fixed and variable rate?
This calculator assumes a fixed rate for the whole term. With a variable rate, the interest — and so your monthly payment — can change over time, which this tool doesn't model.
Is my information saved or uploaded?
No. The calculator runs entirely in your browser. Nothing you enter is stored or sent to a server.