Payment Calculator
Calculate the fixed monthly payment for a loan based on the principal, interest rate, and number of payments.
Input Parameters
Results
Understanding Fixed Payments
A fixed monthly payment (EMI) is calculated so that the loan is fully paid off at the end of the term. Each payment is the same amount, though the portion going to interest vs principal changes over time.
What is the Payment Calculator?
The Universal Payment Calculator determines the exact monthly installment required to pay off any fixed-rate loan, whether it is for a car, personal debt, or financing furniture.
How It Works (Formula)
The tool uses the standard Annuity Payment Formula. Because you are paying down the principal while simultaneously accumulating interest on the remaining balance, the formula utilizes exponents to guarantee that your final monthly payment brings the balance exactly to zero.
$$ PMT = \frac{P \times r}{1 - (1+r)^{-n}} $$
The standard amortized installment loan equation.
How to Use It
Enter the total loan amount (principal). Enter the Annual Percentage Rate (APR). Finally, input the term of the loan in months or years. The calculator will display your exact monthly payment and total interest paid over the life of the loan.