Loan Calculator
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Enter your details and hit “Calculate” to see your results.
About the Loan Calculator
The Loan Calculator helps you estimate your monthly payments, total interest, and overall loan cost before you borrow. Whether you are planning for a personal loan, car loan, or home loan, this tool shows how different loan terms, interest rates, and repayment periods affect your budget.It simplifies financial planning by helping you compare repayment options and choose the most affordable plan. For detailed home loan estimates, you can calculate your repayment terms to make smarter borrowing decisions with confidence
Loan Calculator Formula
The Loan Calculator uses a standard loan amortization formula to calculate your monthly payment (EMI), total interest, and overall loan amount over time. It considers three key factors: the loan amount, interest rate, and repayment term.
Loan Payment Formula
EMI = [P × r × (1 + r)ⁿ] ÷ [(1 + r)ⁿ – 1]
- EMI = Monthly loan payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly payments
Example Calculation
If you take a $10,000 loan at an 8% annual interest rate for 3 years (36 months),Then your monthly interest rate is:
r = 0.08 ÷ 12 = 0.0067
EMI = [10,000 × 0.0067 × (1 + 0.0067)³⁶] ÷ [(1 + 0.0067)³⁶ – 1]
Your monthly payment will be around $313, and your total repayment will be approximately $11,268. That means you'll pay about $1,268 in interest over 3 years
Now plug these values into the formula:
Why It Matters
Understanding your monthly loan payment helps you budget effectively and avoid over-borrowing. You can experiment with different combinations of loan amounts, interest rates, and repayment periods to find the one that best fits your financial goals.
If you are calculating home loan or property payments, use our tool to get precise, mortgage-specific repayment results with the Mortgage Calculator
Frequently Asked Question
What does the Loan Calculator do?
The Loan Calculator helps you estimate monthly payments, total interest, and overall repayment for personal, car, or home loans. It gives a clear picture of how much your loan will cost over time.
How does the Loan Calculator work?
It uses the loan amortization formula to calculate your monthly payment. Enter your loan amount, interest rate, and repayment term, and it instantly shows your payment schedule and total cost.
Why is using a Loan Calculator important?
A Loan Calculator helps you make smarter borrowing decisions. It lets you compare different loan options, plan budgets, and understand how varying rates or terms affect your payments.
What factors affect my loan repayment amount?
Your repayment amount is influenced by three main factors: the principal amount, which is the total sum you borrow; the interest rate, which represents the cost of borrowing that money; and the loan tenure, which is the length of time you take to repay the loan. Together, these elements determine how much you’ll pay each month and the total amount repaid over the life of the loan.
Can I use this calculator for different loan types?
Yes. You can calculate payments for personal, education, auto, or home loans. Each follows the same calculation logic, but rates and terms may vary.
Does the Loan Calculator show how much interest I’ll pay overall?
Yes. The Loan Calculator provides a detailed breakdown of your total interest over the loan term. It helps you see how much of your payment goes toward interest versus the principal, allowing you to plan for faster repayments or compare lenders effectively.