About this calculator
Whether you call it a monthly payment or an EMI (equated monthly installment), the question is the same: if I borrow this much at this rate for this many months, what will I actually owe each month? This calculator works for personal loans, car loans, student loans, or any other fixed-rate installment loan, in any currency — enter the loan amount, annual interest rate, and repayment period, and it returns your monthly payment along with the total interest you'll pay over the life of the loan.
How it works
Like a mortgage, most installment loans use amortizing interest, meaning each payment is a fixed amount split between interest and principal, with the interest portion shrinking and the principal portion growing over time. The formula is EMI = P × r × (1+r)^n / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. If your loan is described as 'simple interest' or 'add-on interest' instead, your lender may calculate it slightly differently — check your loan agreement's payment schedule if the numbers don't line up exactly.
Worked example
For a $20,000 personal loan at 8.5% annual interest over 48 months, the calculator returns a monthly payment of about $492.97. Across all 48 payments that's roughly $23,662.56 total, meaning about $3,662.56 of it is interest — useful to compare against a shorter 36-month term, which would raise the monthly payment but cut that interest total meaningfully.
Formula cross-checked against: Consumer Financial Protection Bureau — Personal Loans.
Frequently asked questions
Does this work for car loans and student loans?
Yes — the amortization math is the same for any fixed-rate installment loan. Just use the amount, rate, and term from your specific loan offer.
Why does my lender's number differ slightly?
Small differences usually come from how a lender rounds each payment, handles the first partial month, or charges origination fees that get added to the loan balance rather than shown separately.
Is a longer term always worse?
A longer term lowers your monthly payment but increases total interest paid, since you're borrowing the money for more months. Shortening the term is one of the few ways to cut total interest without needing a lower rate.
Last reviewed: September 2026.