Loan EMI & Compound Interest Calculator
Calculate monthly loan EMIs, mortgage payments, and investment growth. Test prepayment savings to cut years off your mortgage and export full amortization schedules.
Simulate paying extra each month to see how much interest and tenure you save.
Paying an extra $200/mo saves you $103,449 in interest and frees you from debt 6 yr 11 mo earlier!
Year-by-Year Loan Amortization Schedule
| Year | Opening Balance | Principal Paid | Interest Paid | Ending Balance |
|---|---|---|---|---|
| Year 1 | $300,000 | $3,353 | $19,401 | $296,647 |
| Year 2 | $296,647 | $3,578 | $19,177 | $293,069 |
| Year 3 | $293,069 | $3,817 | $18,937 | $289,252 |
| Year 4 | $289,252 | $4,073 | $18,681 | $285,179 |
| Year 5 | $285,179 | $4,346 | $18,409 | $280,833 |
| Year 6 | $280,833 | $4,637 | $18,118 | $276,196 |
| Year 7 | $276,196 | $4,947 | $17,807 | $271,249 |
| Year 8 | $271,249 | $5,279 | $17,476 | $265,970 |
| Year 9 | $265,970 | $5,632 | $17,122 | $260,338 |
| Year 10 | $260,338 | $6,009 | $16,745 | $254,328 |
| Year 11 | $254,328 | $6,412 | $16,343 | $247,916 |
| Year 12 | $247,916 | $6,841 | $15,913 | $241,075 |
| Year 13 | $241,075 | $7,299 | $15,455 | $233,776 |
| Year 14 | $233,776 | $7,788 | $14,966 | $225,987 |
| Year 15 | $225,987 | $8,310 | $14,445 | $217,677 |
| Year 16 | $217,677 | $8,866 | $13,888 | $208,811 |
| Year 17 | $208,811 | $9,460 | $13,294 | $199,351 |
| Year 18 | $199,351 | $10,094 | $12,661 | $189,257 |
| Year 19 | $189,257 | $10,770 | $11,985 | $178,487 |
| Year 20 | $178,487 | $11,491 | $11,263 | $166,996 |
| Year 21 | $166,996 | $12,261 | $10,494 | $154,735 |
| Year 22 | $154,735 | $13,082 | $9,673 | $141,653 |
| Year 23 | $141,653 | $13,958 | $8,797 | $127,695 |
| Year 24 | $127,695 | $14,893 | $7,862 | $112,803 |
| Year 25 | $112,803 | $15,890 | $6,864 | $96,912 |
| Year 26 | $96,912 | $16,954 | $5,800 | $79,958 |
| Year 27 | $79,958 | $18,090 | $4,665 | $61,868 |
| Year 28 | $61,868 | $19,301 | $3,453 | $42,567 |
| Year 29 | $42,567 | $20,594 | $2,161 | $21,973 |
| Year 30 | $21,973 | $21,973 | $781 | $0 |
The Mathematical Loan EMI Formula Explained
Banks and mortgage lenders calculate your fixed monthly payment using the standard amortization formula:
- P (Principal): The total amount borrowed from the bank.
- r (Periodic Monthly Interest Rate): Annual interest rate divided by 12 months, expressed as a decimal (e.g. 6.5% / 12 / 100 = 0.005417).
- n (Total Payments): Total loan tenure in months (e.g. 30 years × 12 = 360 payments).
Fixed Rate vs. Floating Rate Loans: Which Should You Choose?
Fixed Rate Loan
Your interest rate stays locked for the entire tenure. Monthly payments remain 100% predictable, protecting you from sudden central bank rate hikes.
Floating / Variable Rate
Your interest rate fluctuates based on benchmark market rates (e.g. Federal Reserve funds rate). Typically starts lower than fixed rates, but introduces payment variability.