About the Loan Calculator
Tezmy's Loan Calculator shows exactly what a loan will cost you before you sign. Enter the amount, the yearly interest rate and the length of the loan to see your fixed monthly payment (also called EMI), the total interest you'll pay and the total amount repaid. A year-by-year schedule shows how each payment splits between interest and principal, and how your balance goes down. It works for mortgages, home loans, car loans, student loans and personal loans in any currency.
Updated October 2026
How to use the Loan Calculator
- 1Enter how much you want to borrow.
- 2Enter the yearly interest rate from your lender.
- 3Enter the loan length in years (and extra months if needed).
- 4Read your monthly payment, total interest and the yearly schedule.
How the monthly payment (EMI) is worked out
Most loans are paid back in equal monthly instalments. Each payment covers that month's interest first, and the rest reduces the amount you owe (the principal). The calculator uses the standard formula banks use: payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly interest rate and n the number of months.
Why early payments are mostly interest
Interest is charged on what you still owe. At the start you owe the most, so a big part of each payment is interest. As the balance falls, more of each payment goes to the principal. The year-by-year schedule shows this clearly, and it's why extra payments early in a loan save the most interest.
Ways to pay less interest
- Choose a shorter term: monthly payments are higher, but the total interest is much lower.
- Compare interest rates: even 1% less makes a big difference on a long mortgage.
- Pay a little extra when you can, if your lender allows it without fees.
- Put down a bigger deposit, so you borrow less in the first place.
What the calculator doesn't include
Real loans can have arrangement fees, insurance, property taxes and other costs, and some have variable rates that change over time. Use the result to compare options and plan your budget, then check the lender's official quote, which must show the full cost and the APR. Before you sign, compare the interest you would earn on your own savings with the Compound Interest Calculator. Use the Percentage Calculator to see what share of your income the instalment takes, and the Discount Calculator when a lender offers a lower fee for paying early.
Features
- Monthly payment (EMI) in any currency
- Total interest and total cost
- Principal vs interest breakdown
- Year-by-year repayment schedule
- Works for mortgages, car and personal loans
- Updates instantly as you type
Frequently asked questions
How is the monthly payment calculated?
It uses the standard amortisation formula: payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12) and n is the number of months.
What is EMI?
EMI stands for Equated Monthly Instalment: the fixed amount you pay every month until the loan is paid off. Each EMI covers that month's interest plus part of the principal.
Why do I pay so much interest at the start?
Interest is charged on the balance you still owe. At the start the balance is highest, so more of each payment goes to interest. Over time more goes to the principal.
Does a shorter loan save money?
Usually yes. A shorter term means a higher monthly payment but much less total interest. Try changing the years to compare.
Does this include taxes, insurance or fees?
No. It shows the loan payment only. Your lender may add insurance, taxes or fees on top, so check their full quote.
How do I calculate EMI for a home loan?
Enter the loan amount, the yearly interest rate and the term in years. The monthly payment shown is your EMI, with the total interest and total repayment underneath.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the money. APR also includes most fees, so it's better for comparing loans. This calculator uses the interest rate you enter.
Can I use it for any currency?
Yes. Pick your currency symbol; the maths works the same for rupees, dollars, pounds, euros or any other currency.