Loan Calculator

Monthly Payment

$405.53

The Numbers

  • Total paid: $24,331.67
  • Total interest: $4,331.67

Remaining Balance Over Time

$20,000.00 $0.00 012345 Year
View Full Amortization Schedule
YearPrincipal PaidInterest PaidEnding Balance
1$3,388.80$1,477.53$16,611.20
2$3,670.07$1,196.26$12,941.13
3$3,974.69$891.65$8,966.44
4$4,304.58$561.75$4,661.86
5$4,661.86$204.47$0.00

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Analysis

  • About 18% of your total payments over the life of this loan is interest, not principal.
  • Term length: typical for an auto or larger personal loan.

Recommendations

  • Compare the APR (not just the interest rate) across lenders — fees can add up.
  • See the long-term growth of money at this rate instead with the Compound Interest Calculator.
  • A larger down payment or shorter term both reduce this loan's total interest.

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Includes your inputs and results for this calculation, plus any additional calculations you've compared.

Disclaimer

This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.

How This Calculator Works

A fixed loan payment (sometimes called an EMI, for “Equated Monthly Installment”) is calculated from the loan amount, interest rate, and term using the standard amortization formula. Enter those three figures and this calculator shows your fixed monthly payment — plus how much you’ll pay in total over the life of the loan and how much of that is interest.

This works for any fixed-rate installment loan with a monthly payment schedule — a personal loan, an auto loan, or similar — not just a mortgage. If you’re financing a home specifically, the dedicated Mortgage Calculator adds extra-payment scenarios and other home-loan-specific detail this general-purpose version doesn’t.

The Formula

The standard fixed-rate amortization formula:

M=P×r(1+r)n(1+r)n1M = \vA{P} \times \frac{\vB{r}(1+\vB{r})^{\vC{n}}}{(1+\vB{r})^{\vC{n}} - 1}

where MM is the monthly payment, P\vA{P} is the loan principal, r\vB{r} is the monthly interest rate (the annual rate divided by 12), and n\vC{n} is the total number of monthly payments (the term in months).

Worked Example

A $20,000 loan at 8% annual interest over 60 months (5 years):

  1. Monthly rate: r=8%÷120.667%\vB{r} = 8\% \div 12 \approx 0.667\%.
  2. Applying the formula gives a monthly payment of about $405.53.

Over the full 60 months, that’s about $24,331.67 paid in total — roughly $4,331.67 of which is interest on top of the amount borrowed.

Common Mistakes

  • Confusing the interest rate with the APR. The rate used here drives the monthly payment, but a real loan offer’s APR (which folds in origination fees and other upfront costs) is usually higher and is the more accurate number for comparing two competing loan offers.
  • Assuming an extra payment shortens the term automatically. Making one extra payment reduces the remaining balance, which shortens the payoff time — but only if the loan is actually recast or the extra amount keeps being applied every month; a single one-time extra payment alone doesn’t change the required minimum payment going forward.
  • Not checking for a prepayment penalty. Some loans charge a fee for paying off the balance early — this calculator assumes extra payments go straight to reducing the balance with no penalty, which isn’t true for every loan.

Source: Standard Fixed-Rate Amortization Formula.

Frequently Asked Questions

What is an EMI?

EMI stands for Equated Monthly Installment — the standard term for a loan's fixed monthly payment, which stays the same every month even though the interest/principal split within it changes over time.

How is this different from the Mortgage Calculator?

The underlying math is the same fixed-rate amortization formula, but this calculator is built for shorter, smaller loans quoted in months (personal loans, auto loans) rather than a multi-decade home loan, and doesn't include Mortgage Calculator's extra-payment and PMI-adjacent detail.

Does this include fees or the APR?

No — this calculates payment based on the interest rate you enter. A loan's Annual Percentage Rate (APR) often includes additional fees and can be meaningfully higher than the stated interest rate, so compare APRs when shopping between lenders, not just rates.