Loan Calculator - Calculate Monthly Payments, Interest & EMI
Loan Calculator
Loan Summary:
Formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where M = Monthly Payment, P = Principal, r = Monthly Interest Rate, n = Number of Payments
How Our Loan Calculator Works
Our loan calculator helps you find your monthly payment amount. It uses a simple formula to calculate how much you need to pay each month.
The calculator takes your loan amount, interest rate, and loan term. Then it shows you the monthly payment and total interest cost.
Steps to Use:
1. Enter the total loan amount you want to borrow
2. Input the annual interest rate (APR)
3. Set the loan term in years or months
4. View your monthly payment and total interest costs
Common Loan Examples
Home Loan Example
• Loan Amount: $300,000
• Interest Rate: 6.5% per year
• Loan Term: 30 years
• Monthly Payment: $1,896
Car Loan Example
• Loan Amount: $25,000
• Interest Rate: 4.5% per year
• Loan Term: 5 years
• Monthly Payment: $466
Personal Loan Example
• Loan Amount: $15,000
• Interest Rate: 8.5% per year
• Loan Term: 3 years
• Monthly Payment: $474
Business Loan Example
• Loan Amount: $50,000
• Interest Rate: 7.2% per year
• Loan Term: 7 years
• Monthly Payment: $748
Loan Calculation Table
| Loan Amount | Interest Rate | Term (Years) | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $10,000 | 5.0% | 3 | $300 | $788 |
| $20,000 | 6.0% | 5 | $387 | $3,199 |
| $100,000 | 4.5% | 15 | $765 | $37,698 |
| $250,000 | 6.5% | 30 | $1,580 | $318,861 |
Types of Loans You Can Calculate
Home Loans (Mortgage)
Home loans help you buy a house. These loans usually last 15 to 30 years. The interest rates are often lower because your house is security for the loan.
Common terms: 15, 20, 30 years | Typical rates: 3-8%
Car Loans (Auto Loans)
Car loans help you buy a vehicle. These loans usually last 3 to 7 years. The car itself is security for the loan, so rates are reasonable.
Common terms: 3, 4, 5, 6, 7 years | Typical rates: 3-10%
Personal Loans
Personal loans can be used for many things. These loans usually last 2 to 7 years. No security is needed, but interest rates are higher.
Common terms: 2, 3, 5, 7 years | Typical rates: 6-20%
Business Loans
Business loans help companies grow. These loans can last from 1 to 25 years. Rates depend on your business and what you use the money for.
Common terms: 1-25 years | Typical rates: 4-15%
Frequently Asked Questions
What is EMI in a loan?
EMI means Equal Monthly Installment. It is the fixed amount you pay every month to repay your loan. This amount includes both the principal (loan amount) and interest.
How is monthly loan payment calculated?
Monthly payment is calculated using the loan amount, interest rate, and loan term. The formula considers compound interest to find the fixed monthly amount that will pay off the loan completely.
What affects my loan interest rate?
Your credit score, income, loan amount, loan term, and type of loan affect your interest rate. Better credit scores usually get lower rates.
Should I choose a longer or shorter loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms mean lower monthly payments but more total interest. Choose based on your budget and goals.
Can I pay off my loan early?
Most loans allow early payment, but some have prepayment penalties. Check your loan terms. Paying early can save you money on interest.
Tips for Better Loan Terms
Improve Your Credit Score
Pay bills on time and reduce debt to get better interest rates.
Shop Around
Compare rates from different lenders to find the best deal.
Make a Larger Down Payment
More down payment means smaller loan amount and lower monthly payments.
Choose the Right Term
Pick the shortest term you can afford to save on total interest.
Avoid Extra Fees
Skip unnecessary add-ons and read all terms carefully.
Consider Pre-approval
Get pre-approved to know your budget and negotiate better.