How to Use This Loan Calculator
Select your loan type, enter the loan amount, annual interest rate, and loan term. The calculator instantly computes your monthly EMI, total interest paid, and shows a full yearly repayment schedule.
EMI Formula
EMI = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
Where P = principal, r = monthly interest rate (annual rate ÷ 12), n = total number of months.
Types of Loans
Personal Loan: Unsecured loan for any purpose. Typical rates: 6–36% APR. Terms: 1–7 years.
Car Loan: Secured loan for vehicle purchase. Typical rates: 4–15% APR. Terms: 2–7 years.
Student Loan: Education financing. Federal rates 4–8%, private 3–14%. Terms: 10–25 years.
How to Reduce Total Interest
Making extra payments reduces your principal faster, cutting total interest significantly. Even one extra payment per year can reduce a 5-year loan by several months and save hundreds in interest.
Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan. Each payment covers both interest (calculated on remaining balance) and principal reduction. In early payments, more goes to interest; in later payments, more reduces the principal.
What's the difference between APR and interest rate?
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus any additional fees and costs, giving a more complete picture of the true cost of the loan.
Can I pay off a loan early?
Yes, but check if your lender charges a prepayment penalty. Many personal loans allow early repayment without fees. Paying off early saves on total interest costs.
How does my credit score affect my loan rate?
A higher credit score (750+) typically earns the lowest available rates. Scores below 650 may only qualify for higher-rate loans. Even a 2% difference in rate on a $20,000 loan can mean $1,000+ in extra interest over 5 years.