An installment loan is repaid in equal monthly payments. Early payments are mostly interest and later ones mostly principal; a higher rate or longer term raises the total interest.
Loan / EMI Calculator
Monthly payment, total interest and total cost of a loan.
How it works
M = P · r / (1 − (1 + r)^−n), r = annual rate ÷ 12, n = months
Frequently asked questions
Does a longer term lower my payment?
Yes, but total interest rises because the balance is outstanding longer.