Home loan
Typical term: 15 to 30 years
The biggest and longest loan most people take. Because the term is long, interest can end up close to or above the amount you borrowed, so small rate differences and early prepayments matter a lot.
Loan calculator
Work out the EMI, total interest and payoff date for any home, car or personal loan, then see the full amortization schedule and how much an extra payment each month saves.
USD
%
years
USD
Optional. Paying a little more than the EMI goes straight to the balance.
Monthly payment (EMI)
$1,896
- Principal
- $300,000
- Total interest
- $382,633
- Total you repay
- $682,633
- Debt-free by
- Oct 2056
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,353 | $19,401 | $296,647 |
| 2 | $3,578 | $19,177 | $293,069 |
| 3 | $3,817 | $18,937 | $289,252 |
| 4 | $4,073 | $18,681 | $285,179 |
| 5 | $4,346 | $18,409 | $280,833 |
| 6 | $4,637 | $18,118 | $276,196 |
| 7 | $4,947 | $17,807 | $271,249 |
| 8 | $5,279 | $17,476 | $265,970 |
| 9 | $5,632 | $17,122 | $260,338 |
| 10 | $6,009 | $16,745 | $254,328 |
How the EMI is calculated
EMI stands for equated monthly instalment: the same payment every month until the loan is repaid. Banks work it out with the reducing-balance formula, which charges interest only on what you still owe.
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P is the loan amount (principal)
- r is the monthly rate: yearly rate ÷ 12 ÷ 100
- n is the number of monthly payments
Worked example
A $300,000 loan at 6.5% for 30 years:
- Monthly EMI
- $1,896
- Total interest
- $382,633
- Total repaid
- $682,633
- Interest in year 1
- $19,401 of $22,754 paid
One calculator for home, car and personal loans
All three use the same formula. What changes is the typical term, the rate, and how much the term length moves your total interest.
Car loan
Typical term: 3 to 7 years
Shorter terms keep total interest low, but the monthly EMI is higher. Compare a 5-year and a 7-year term: the lower EMI usually costs noticeably more interest overall.
Personal loan
Typical term: 1 to 5 years
Unsecured, so rates are higher. Check the total interest line before you borrow, and use the extra payment box to see how quickly you could clear it early.
Why early payments are mostly interest
Interest is charged on the balance you still owe. At the start the balance is at its highest, so most of each EMI goes to interest. In the example above, only $3,353 of the $22,754 paid in the first year reduces the loan.
As the balance falls, the interest part shrinks and more of the same EMI clears the principal. The amortization chart in the calculator shows this shift year by year: the interest part of each bar gets smaller as the loan goes on.
Pay it off faster with extra payments
Anything you pay above the EMI goes straight to the principal, so less interest builds up for the rest of the loan. Adding $200.00 a month to the example loan saves $103,449 in interest and clears it 6 years 11 months early.
Type an amount into Extra payment each month to see your own saving. Some lenders charge a prepayment fee, so check your loan terms first.
The zero-cost loan idea
A zero-cost loan pairs your EMI with a small monthly investment (an SIP). If the investment grows faster than your loan rate, it can build up to the total interest you pay the bank, so the loan effectively costs you nothing extra.
For the example loan, about $122.10 a month invested at 12% a year, after 12.5% tax on gains, would grow to roughly the $382,633 of interest over 30 years. Turn on the zero-cost loan panel in the calculator to run it for your loan.
Loan calculator questions
How is loan EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly payments. The calculator applies this formula instantly and builds the full repayment schedule from it.
What is an amortization schedule?
It is the list of every payment over the life of the loan, showing how much goes to interest and how much reduces the balance. Early payments are mostly interest; later payments are mostly principal. The chart and table above show this year by year.
Do extra payments really save interest?
Yes. Every extra amount goes straight to the principal, so less interest builds up afterwards. On a $300,000 loan at 6.5% for 30 years, paying $200.00 extra a month saves about $103,449 in interest and finishes 6 years 11 months early. Check whether your lender charges a prepayment fee first.
Can I use this as a home loan, car loan or personal loan calculator?
Yes. All three are standard amortising loans and use the same EMI formula. Pick the loan type to load typical values, then change the amount, rate and term to match your offer.
Is a shorter loan term better?
A shorter term means a higher EMI but much less total interest. A longer term lowers the EMI but you pay interest for more years. Try both in the calculator and compare the total interest line.
What is a zero-cost loan?
It is a plan where you invest a small amount every month (an SIP in mutual funds or ETFs) alongside your EMI, aiming for the investment to grow to the total interest you pay the bank. If returns meet the assumption, the loan's interest is effectively paid back. Returns are not guaranteed, so treat it as a plan, not a certainty.
Does it work in my currency?
It picks a currency from your browser language and supports 20 currencies, including INR, USD, GBP, EUR, AED, PKR, MYR and more. Switch currency at any time from the menu above the inputs.
Is this loan calculator accurate?
It uses the standard reducing-balance formula used by banks for fixed-rate loans. Your lender's figure can differ slightly because of fees, insurance, rounding, or a floating rate that changes over time.
Plan the rest of your money
Results are estimates for fixed-rate loans and are for information only, not financial advice. Your lender's figures may differ because of fees, insurance, rounding or rate changes.