Repayment schedule by year
| Year | Principal paid | Interest paid | Balance left |
|---|
Uses the standard reducing-balance EMI formula with a fixed rate. Your lender’s figures may differ slightly because of fees, insurance or rounding. For education only, not financial advice.
What this loan and EMI calculator does
This calculator works out the fixed monthly payment on a loan, often called the EMI (equated monthly instalment). Enter the amount you want to borrow, the interest rate and the loan term, and you will see:
- your monthly payment
- the total interest you will pay over the life of the loan
- the total amount you will repay
- how much of your money goes to the loan itself versus interest
- a year-by-year repayment schedule
It works for personal loans, car loans, student loans and other fixed-rate instalment loans. For home loans with property tax and insurance, use the mortgage calculator.
How to use it
- Loan amount: how much you plan to borrow.
- Annual interest rate: the yearly rate quoted by your lender. If they give you an APR, use that for a closer picture of total cost.
- Loan term: how long you have to repay, in years or months.
- Extra payment each month (optional): add an amount to see how paying a little more each month shortens the loan and cuts your interest.
The EMI formula
Lenders use the reducing-balance formula:
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P = the loan amount
- r = the monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = the number of monthly payments
Each payment covers that month’s interest first, and the rest reduces your balance. Early on, most of the payment is interest. As the balance falls, more of each payment goes toward the loan itself. Open Repayment schedule by year to see this shift.
Worked example
You borrow $50,000 at 8.5% a year for 5 years (60 payments).
- Monthly payment (EMI): $1,025.83
- Total interest: about $11,550
- Total repaid: about $61,550
About 81% of everything you pay goes toward the loan itself and 19% goes to interest.
Paying a little extra: add $200 a month on top of the EMI and the loan is cleared in 4 years and 1 month instead of 5 years, saving about $2,332 in interest.
Choosing a shorter term: the same loan over 3 years has a higher payment of $1,578.38 a month, but total interest falls to about $6,822.
How to lower the cost of a loan
- Compare rates. Even a 1% difference adds up over several years.
- Pick the shortest term you can comfortably afford. Shorter terms mean higher payments but much less interest.
- Pay extra when you can. Extra payments go straight to the balance, which reduces the interest charged every month after.
- Check for fees. Ask about processing fees and early repayment charges before you sign, as they change the real cost.
Frequently asked questions
Is EMI the same as monthly payment?
Yes. EMI stands for equated monthly instalment. It is the fixed amount you pay each month, covering both interest and part of the loan.
Why do I pay more interest at the start of the loan?
Interest is charged on the balance you still owe. At the start that balance is highest, so the interest portion is largest. It shrinks with every payment.
What is the difference between a flat rate and a reducing rate?
A flat rate charges interest on the original loan amount for the whole term, even as you repay it. A reducing rate charges interest only on what you still owe. This calculator uses the reducing method. A flat rate of the same number is more expensive, so always ask which method a lender uses.
Why is my lender’s figure slightly different?
Lenders may add processing fees or insurance, round differently, or count days in a slightly different way. The result here is a close estimate for planning.
Is my data saved?
No. The calculator runs entirely in your browser and nothing you type is stored or sent anywhere.
Related calculators
- Mortgage calculator: home loans with tax, insurance and fees
- Compound interest calculator: see interest working for you instead of against you
- All free money calculators
This calculator is for education and planning only and is not financial advice. Confirm the final terms with your lender before borrowing.