Loan Calculator
Calculate loan EMI, total interest, and amortization schedule with compound frequency and payment frequency options.
Monthly Payment
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Principal
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Total Interest
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Total Payment
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Principal vs. Interest
Yearly Amortization Summary
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What is Loan Calculator?
A loan calculator computes your periodic payment (EMI), total interest payable, and total repayment amount for any loan. It supports multiple compound frequencies (monthly, daily, weekly, etc.) and payment frequencies (monthly, biweekly, weekly), giving you a precise breakdown for any loan structure. A visual principal vs. interest bar and yearly amortization table help you understand the true cost of borrowing.
How to use
- 1 Enter the total loan amount.
- 2 Input the annual interest rate quoted by your lender.
- 3 Enter the loan tenure in years.
- 4 Select the compounding frequency (most consumer loans use monthly APR).
- 5 Select your payment frequency.
- 6 Review the payment amount, interest breakdown bar, and yearly amortization summary.
Formula
Example calculation
A $20,000 loan at 8% APR over 5 years, compounded monthly with monthly payments: EMI ≈ $405.53. Total interest ≈ $3,332. Principal makes up 86% of total repayment.
Frequently asked questions
What is the difference between compounding frequency and payment frequency?
Compounding frequency determines how often interest accrues on the outstanding balance. Payment frequency determines how often you make payments. Most US consumer loans compound monthly and accept monthly payments. Some mortgages offer biweekly payment options which effectively make one extra payment per year.
What does APR mean?
APR (Annual Percentage Rate) is the annualised interest rate. For monthly compounding, the monthly rate is APR ÷ 12. Some lenders quote a daily periodic rate — in that case use Daily compounding.
Is it better to choose a shorter or longer loan tenure?
A shorter tenure means higher periodic payments but far less total interest paid. A longer tenure is easier on cash flow but significantly more expensive overall. Choose the shortest tenure your budget can comfortably sustain.
How does biweekly payment save money?
Paying biweekly results in 26 half-payments per year, equivalent to 13 full monthly payments instead of 12. The extra payment each year reduces principal faster, cutting total interest and shortening the loan term.
What is a reducing balance loan?
A reducing balance loan (used in this calculator) charges interest only on the outstanding balance each month. As you repay principal, less interest accrues. This is cheaper than a flat-rate loan that charges interest on the original principal throughout.