Monthly payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). For a ₹3 lakh purchase converted to a 12-month no-cost EMI at 0% effective rate, the payment is ₹25,000/month; for the same amount at a 14% personal loan rate over 3 years, the payment is ₹10,253/month. Use the payment calculator before signing any EMI plan to confirm the true cost.
About this calculator
A payment calculator (also called loan payment calculator or PMT calculator) determines the fixed monthly installment required to repay any loan. Enter the loan amount, annual interest rate, and tenure in months — the calculator returns the payment, total interest, and full cost of the loan. It uses the standard annuity formula: PMT = PV × r / (1 − (1+r)^−n).
This calculator is useful for any loan type that doesn't have a product-specific calculator: gold loans (typically 8–11%), loan against property (9–12%), MUDRA loans, business loans, consumer durable loans, and microfinance products. Unlike the EMI Calculator (which accepts tenure in years), the Payment Calculator accepts months — useful for short-term or non-standard tenures.
In India, one critical distinction is the difference between flat rate and reducing balance rate. A 12% flat rate loan costs far more than a 12% reducing balance loan — the flat rate equivalent is roughly 21–22% on reducing balance. This calculator uses the reducing balance method. If your lender quotes a flat rate, check with them before entering it here.
After calculating your payment, also run the Amortization Calculator to see the month-by-month breakdown — especially useful for planning partial prepayments and tracking how your loan balance reduces over time.
Common uses
- Calculate payments for a short-term personal loan
- Determine monthly installments for appliance or furniture financing
- Compare payment amounts for different loan amounts at the same rate
- Check loan affordability before signing a contract
Frequently asked questions
What is the difference between a loan calculator and a payment calculator?
A loan payment calculator uses months as the input for the repayment period, while an EMI calculator typically uses years. Both use the same underlying formula but the payment calculator offers more flexibility for non-standard loan terms.
What happens if the interest rate is zero?
If the annual interest rate is 0%, the monthly payment is simply the principal divided by the number of months. No interest accumulates, so the total payment equals the principal.