Loan Calculator
Calculate monthly payments and total interest for any loan — mortgage, car, personal, student
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How Loan Payments Are Calculated
Every loan payment follows a fixed formula: EMI = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly rate (annual rate ÷ 12), and n is total months. With each payment, more goes toward principal and less to interest — this is called amortization.
On a typical 5-year $25,000 loan at 6.5%, you pay about $487/month. Of that, the first payment is ~$135 interest and ~$352 principal. By the last payment, it's ~$3 interest and ~$484 principal. Making extra payments early has the biggest impact — they go directly to principal when interest charges are highest.
Frequently Asked Questions
EMI = P × [r(1+r)^n] / [(1+r)^n − 1]. P = loan amount, r = monthly rate (annual÷12), n = total months. Early payments are mostly interest; later ones are mostly principal.
A table showing each payment broken into principal and interest, with remaining balance. Useful for planning extra payments or refinancing decisions.
APR (Annual Percentage Rate) includes the interest rate plus fees. It reflects the true annual cost. Always compare APR — not just the stated rate — when comparing loans from different lenders.
Yes — extra payments reduce the principal directly, cutting future interest. One extra mortgage payment per year can save years of payments and thousands in interest. Check for prepayment penalties first.