Loan Payment Calculator
Compute the monthly payment (EMI) for a loan given principal, annual rate, and term.
Calculator
Use the Loan Payment Calculator
Result
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Formula
EMI = P·r·(1+r)^n ÷ ((1+r)^n − 1), r monthly
Step-by-step
- 1
Enter the loan amount
How much you are borrowing.
- 2
Enter rate and term
Annual interest rate and years to repay.
Worked example
Example input: principal: 20000, rate: 6, years: 5
Result: 386.66
Related tools
- Compound Interest
Growth of savings.
- Profit Margin
Business profitability.
Frequently asked questions
How is the monthly payment computed?
The standard amortization formula: monthly rate combines with the number of months to pay down interest and principal together. The example 20,000 at 6 percent over 5 years gives 386.66 per month. Every payment starts heavier on interest and leans toward principal as months pass.
What does the payment actually include?
Only principal and interest — the mechanics of the loan itself. Insurance, taxes, or fees a lender adds on top live outside this formula, so treat the output as the finance floor.
What if the loan carried no interest?
Then repayment is plain division: 20,000 over 60 months is 333.33 each month with nothing extra. The calculator handles that zero-rate case directly.