How it works
Whether it is a personal loan, a car loan or any other fixed-rate consumer credit, the mechanics are the same: you borrow a lump sum and repay it in equal monthly instalments — often called the EMI (equated monthly instalment) — that cover both interest and principal. Early payments are mostly interest; later ones are mostly principal.
This loan payment calculator shows your monthly instalment, the total interest you will pay and a full year-by-year repayment schedule. Use the APR (annual percentage rate) from your loan offer rather than the nominal rate — the APR includes fees, so it reflects the true cost of borrowing and makes offers comparable across European lenders.
How the monthly loan payment is calculated
EMI = P × r ÷ (1 − (1 + r)^(−n))
r = AnnualRate ÷ 12
n = Years × 12P is the amount borrowed, r the monthly interest rate and n the number of monthly payments. With a 0% rate the payment is simply P ÷ n.