Bank Loan Calculator

Calculate your monthly loan payments easily.

A bank loan is money you borrow from a bank and repay over time, usually in regular monthly instalments. Each instalment, known as an EMI, combines part of the amount you borrowed with interest charged by the lender. This calculator helps you plan before you apply: enter the loan amount, annual interest rate and term, and it estimates your monthly payment, the total interest you would pay, and the total amount payable over the life of the loan. It is a simple way to compare loan sizes, rates and terms side by side, so you can see what fits your budget before speaking to a lender.

What Is EMI?

EMI stands for Equated Monthly Instalment. It is the fixed amount you pay each month until the loan is repaid in full. Early in a loan, a larger share of each EMI goes towards interest, while later payments pay off more of the original amount. Because the EMI stays the same each month for a fixed-rate loan, it makes budgeting easier: you know in advance what leaves your account and for how long. This calculator assumes a fixed interest rate and equal monthly payments throughout the term.

The EMI Formula

The calculator uses the standard EMI formula:
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

  • P is the loan amount, or principal, you borrow.
  • r is the monthly interest rate, worked out as the annual interest rate ÷ 12 ÷ 100. For example, 7.5% a year gives a monthly rate of 0.00625.
  • n is the total number of monthly payments, so a 10-year loan means 120 payments.

The formula balances interest and principal so that the loan is fully repaid by the final payment, with no balance left over.

Worked Example

Take a $100,000 loan at 7.5% annual interest over 10 years. That is 120 monthly payments. The calculator gives:

  • Monthly payment: $1,187.02
  • Total interest: $42,442.40
  • Total payment: $142,442.40

Try changing one figure at a time (a lower rate, a larger loan or a longer term) to see how quickly the monthly payment and the total interest change.

How to Use the Bank Loan Calculator

  1. Enter your loan amount: type in the total amount you plan to borrow.
  2. Enter the annual interest rate: for example, 7.5 for 7.5% interest.
  3. Enter the loan term in years: like 5, 10, or 20 years.
  4. Click the “Calculate” button: your monthly payment will appear instantly below.

What Types of Loan Can It Help With?

This calculator suits the most common kinds of bank borrowing. For a home loan, it gives a quick estimate of the monthly cost of a mortgage amount at a given rate and term. For a car loan, it can help you compare a shorter term with a higher monthly payment against a longer term with more total interest. For a personal loan, it can show whether a proposed amount is affordable month by month. If you are thinking about moving as well as borrowing, our home selling calculator can help you work out the figures on the selling side before you commit to a new loan.
The result is an estimate of principal and interest only. It does not include arrangement or other lender fees, taxes, insurance, or any extra charges, which can add to the true cost of borrowing.

Frequently Asked Questions

Does a longer term lower my monthly payment?
Yes, spreading payments over more months usually lowers the monthly payment, because the same amount is divided into more instalments. The trade-off is that interest has longer to build up, so you will usually pay more interest in total, even though each payment is smaller.

Does the result include fees, taxes or insurance?
No. The calculator works out principal and interest only. Fees, taxes and insurance are not included, so the amount you actually pay each month could be higher once those are added.

Can I use this calculator for a home loan?
Yes, as an estimate. Enter the amount you hope to borrow, the rate you have been quoted and the term, and it will show the monthly payment. A lender’s final offer may differ once fees, deposit requirements and other terms are taken into account.

What happens if the interest rate changes?
The calculation assumes the rate stays fixed for the whole term. If your loan has a variable rate, your monthly payment could rise or fall when the rate changes, so treat the result as a starting point, not a guarantee.

Is the result the exact amount my bank will charge?
No. It is an estimate based only on the three figures you enter. Your bank may use a different method, rounding or repayment schedule, so always confirm the final figures with your lender before you agree to a loan.

Disclaimer: The figures on this page are estimates only and are provided for education and planning. They are not financial advice, and they do not promise that a lender will offer you a particular rate, term or loan. Actual rates, terms, fees and eligibility vary by lender and by your circumstances. Check the full terms with your bank before making a borrowing decision.

Interest builds over time, so use our compound interest calculator to see how it grows, and our percentage calculator to work out interest as a share of the loan.