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Loan Payment Calculator

Calculate monthly payments (EMI), total interest, and payoff date for any fixed-rate loan.

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Monthly payment (EMI)

$0

Loan amount

$0

Total interest

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Total repaid

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Amortization schedule (yearly)

Quick Answer

A $20,000 loan at 9% APR for 5 years has a monthly payment (EMI) of $415.17. Over the full term you pay $4,910 in interest, for a total repayment of $24,910. Adding just $50 extra per month cuts about 11 months off the payoff and saves roughly $650 in interest.

How to use this loan payment calculator

Enter the amount you want to borrow, the APR from your lender's offer, and the term in years. The calculator shows your fixed monthly payment instantly. Then try the optional extra-payment field: even small additional amounts go straight to principal and can shave months — and hundreds or thousands in interest — off the loan.

The EMI formula

M = P × [r(1 + r)n] ÷ [(1 + r)n − 1]

  • M — monthly payment (EMI)
  • P — principal (loan amount)
  • r — monthly interest rate (annual APR ÷ 12)
  • n — total number of monthly payments (years × 12)

What the results tell you

The monthly payment is only half the story — total interest is what the loan really costs. Stretching a $20,000 loan from 5 to 7 years drops the payment by about $94 but adds roughly $2,900 in interest. The extra-payment panel quantifies the most powerful lever borrowers have: every extra dollar of principal stops accruing interest for the rest of the loan's life. Planning to attack multiple debts at once? Our debt payoff calculator shows which loan to target first.

What this calculator doesn't include

Origination fees, late fees, and prepayment penalties are not modeled (use the personal loan calculator for fee-inclusive comparisons). The tool assumes a fixed rate and that extra payments are applied to principal immediately — confirm your lender applies them that way and charges no prepayment penalty.

Frequently Asked Questions

How is a monthly loan payment (EMI) calculated?
EMI uses the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly rate (annual rate ÷ 12), and n is the number of monthly payments. Every payment is identical; only the interest/principal split inside it changes.

What happens if I pay extra each month?
Extra payments go entirely to principal, which reduces every future month's interest charge. On a $20,000 loan at 9% for 5 years, adding $50/month saves roughly $650 in interest and pays the loan off about 11 months early.

Is it better to have a shorter or longer loan term?
Shorter terms mean higher monthly payments but far less total interest. A $20,000 loan at 9% costs about $4,910 in interest over 5 years versus roughly $7,850 over 7 years. Choose the shortest term whose payment fits your budget comfortably.

Does this calculator work for mortgages or car loans?
The core math is the same for any fixed-rate amortizing loan. For mortgages, use our mortgage calculator — it handles CMHC premiums, semi-annual compounding, property tax, and insurance; for car loans, use the auto loan calculator to include sales tax, fees, and trade-ins.

What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) includes the interest rate plus lender fees, so it reflects the true yearly cost. When comparing loan offers, compare APRs.

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Official sources

Rules and dollar limits change. Confirm current amounts with the official pages below before you act.

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