Balance and payments by year
Bars show how much of each year's payments goes to principal and to interest. The line shows the loan balance left at the end of each year.
Yearly repayment schedule
Your amortization table, grouped by year.
| Year | Principal paid | Interest paid | Total paid | Balance left |
|---|---|---|---|---|
| Year 1 | $4,101 | $2,199 | $6,301 | $20,899 |
| Year 2 | $4,508 | $1,792 | $6,301 | $16,391 |
| Year 3 | $4,956 | $1,345 | $6,301 | $11,435 |
| Year 4 | $5,447 | $853 | $6,301 | $5,988 |
| Year 5 | $5,988 | $313 | $6,301 | $0 |
EMI formula
Banks use the reducing-balance formula below. Interest is charged each month only on the amount you still owe.
Worked examples
Three common loans, calculated step by step. Click "Try it" to load an example into the calculator.
Car loan
- r = 7.5 ÷ 12 ÷ 100 = 0.00625
- n = 5 × 12 = 60
- (1+r)ⁿ = 1.4533
- EMI = 18,000 × 0.00625 × 1.4533 ÷ 0.4533
Home loan
- r = 6.5 ÷ 12 ÷ 100 = 0.00542
- n = 20 × 12 = 240
- (1+r)ⁿ = 3.6564
- EMI = 250,000 × 0.00542 × 3.6564 ÷ 2.6564
Personal loan
- r = 12 ÷ 12 ÷ 100 = 0.01000
- n = 2 × 12 = 24
- (1+r)ⁿ = 1.2697
- EMI = 5,000 × 0.01000 × 1.2697 ÷ 0.2697
How to use this calculator
Enter the loan amount
Type the amount you want to borrow, or drag the slider. Pick your currency from the list.
Add the yearly interest rate
Use the rate your bank quotes per year. The calculator turns it into a monthly rate for you.
Choose the loan term
Switch between years and months. A longer term lowers the EMI but raises total interest.
Read your results
See your EMI, total interest, payoff date, the chart and the full yearly schedule below.
Frequently asked questions
What is EMI?
EMI means Equated Monthly Installment. It is the fixed amount you pay your lender every month until the loan is fully repaid. Each EMI covers part of the interest and part of the principal.
Why does more of my early EMI go to interest?
Interest is charged on the balance you still owe. At the start the balance is highest, so interest takes a bigger share. As the balance falls, more of each payment goes to principal.
Does a longer loan term save money?
No. A longer term makes each EMI smaller, but you pay interest for more months, so the total interest goes up. Compare the "Total interest" figure for different terms.
Is this calculator accurate for my bank?
It uses the standard reducing-balance formula used by most banks. Your bank may add processing fees, insurance or a different rounding method, so treat the result as a close estimate.
Can I use it for a 0% interest loan?
Yes. At 0% the EMI is simply the loan amount divided by the number of months, and total interest is zero.