Personal Loan, Car Loan, EMI & Amortization Calculator
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Monthly EMI Payment
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Amortization Schedule (First 24 Months)
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Payment
Principal
Interest
Balance
Typical Loan Interest Rates by Type
Loan Type
Typical Rate (USA)
Typical Rate (UK)
Typical Rate (UAE)
Personal Loan
7–24%
6–20%
6–20%
Car / Auto Loan
5–10%
4–9%
2–5%
Student Loan
5–8%
6–8%
N/A
Business Loan
6–25%
5–15%
5–12%
What is EMI?
EMI (Equated Monthly Installment) is the fixed amount you pay each month to repay a loan over a set period. Each EMI payment covers both the interest accrued and a portion of the principal. In the early months, a larger part of each payment goes toward interest; as the loan matures, more goes toward principal — this is called amortization.
EMI Formula
EMI = P × r × (1+r)^n / [(1+r)^n − 1] Where P = principal, r = monthly interest rate (annual ÷ 12), n = total months
Frequently Asked Questions
► How can I reduce my loan EMI?
You can reduce your EMI by: (1) Choosing a longer repayment term, (2) Making a larger down payment (for secured loans), (3) Negotiating a lower interest rate, or (4) Improving your credit score before applying. Note that a longer term means more total interest paid.
► What is the difference between reducing balance and flat rate?
A reducing balance loan charges interest only on the outstanding principal, so interest decreases each month. A flat rate loan charges interest on the original principal throughout — making the effective rate roughly double. Always ask lenders which method they use.
► Does making extra payments help?
Yes. Making even one extra EMI payment per year can cut your loan term significantly. On a 5-year personal loan, one extra annual payment can reduce the term by 6–12 months and save substantial interest. Check if your loan has prepayment penalties before doing so.