Loan Interest Calculator

Tool Guide

About This Tool

Loan Interest Calculator computes monthly payments, total interest, and total repayment for a loan given the principal, annual rate, and term. Supports both equal monthly payment (EMI) and equal principal methods.

Core Features

1. Two repayment methods: Equal monthly payment (fixed amount each month) and equal principal (fixed principal repayment, declining interest).

2. Amortization schedule: Detailed monthly breakdown of principal vs. interest for each payment.

3. Comparison: Shows total interest under both methods side by side to help you choose.

How to Use

Step 1: Enter loan amount, annual interest rate, and term (months).

Step 2: Select repayment method (equal payment or equal principal).

Step 3: View monthly payment, total interest, and the full amortization table.

Use Cases

Mortgage planning: Calculate monthly payments and assess affordability before taking out a home loan.

Auto loan: Compare different loan plans and find the lowest total interest option.

Personal loans: Calculate the actual cost of consumer loans to avoid high-rate traps.

FAQ

Q: Which repayment method is better?

A: Equal monthly payment offers stable, predictable payments — easier to budget. Equal principal repayment costs less total interest but has higher initial payments. Choose based on your cash flow.

Q: How do I convert between annual and monthly rates?

A: Monthly rate = Annual rate ÷ 12. For a 6% annual rate, the monthly rate is 0.5%.