Personal Loan EMI Calculator
A personal loan is unsecured and usually repaid over one to five years. Enter the amount, rate and tenure to see the EMI and how much the loan really costs in interest.
Results
Monthly EMI
₹16,607.15
- Total interest
- ₹97,858
- Total payment
- ₹5,97,858
- Principal + interest
- Number of payments
- 36
Your monthly EMI is ₹16,607.15 for 36 payments, with ₹97,858 in total interest.
Principal vs interest
- Principal₹5,00,000 (83.6%)
- Total interest₹97,858 (16.4%)
Yearly payment schedule (3 rows)
| Period | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| Year 1 | ₹1,47,208 | ₹52,078 | ₹1,99,286 | ₹3,52,792 |
| Year 2 | ₹1,65,877 | ₹33,408 | ₹1,99,286 | ₹1,86,915 |
| Year 3 | ₹1,86,915 | ₹12,371 | ₹1,99,286 | ₹0 |
Show the calculation steps
- Monthly interest rate r = 12% ÷ 12 = 1% (0.01 as a decimal).
- Number of monthly payments n = 3 years = 36 payments.
- (1 + r)^n = 1.4308, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹16,607.15.
- Total payment = EMI × n = ₹16,607.15 × 36 = ₹5,97,858.
- Total interest = total payment − principal = ₹5,97,858 − ₹5,00,000 = ₹97,858.
- Lenders may round the EMI to the nearest whole currency unit, so your bank's figure can differ slightly.
Why personal loans cost more
Because personal loans are unsecured, lenders usually charge higher interest rates than for home or car loans. Rates often depend on your credit score, income and employer.
The shorter tenure keeps total interest lower, but each EMI is larger, so check that it fits your monthly budget first.
Check the real cost
Interest is not the only cost. Many lenders charge a processing fee and there may be prepayment or foreclosure charges. To see the effect of fees on the rate you effectively pay, use the APR calculator.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Total payment = EMI × n
Total interest = Total payment − P
Where:
- P
- = Principal, the loan amount
- r
- = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- = Number of monthly payments
Example calculation
₹5,00,000 personal loan at 12% for 3 years
Inputs
- Loan Amount
- ₹5,00,000
- Interest Rate
- 12 %
- Loan Tenure
- 3 years
Result
- Monthly EMI
- ₹16,607.15
- Total interest
- ₹97,858
- Total payment
- ₹5,97,858
- Number of payments
- 36
Step-by-step
- Monthly interest rate r = 12% ÷ 12 = 1% (0.01 as a decimal).
- Number of monthly payments n = 3 years = 36 payments.
- (1 + r)^n = 1.4308, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹16,607.15.
- Total payment = EMI × n = ₹16,607.15 × 36 = ₹5,97,858.
- Total interest = total payment − principal = ₹5,97,858 − ₹5,00,000 = ₹97,858.
Important notes
- Processing fees, GST on fees and insurance are not included.
- Your approved rate depends on your credit profile and may differ from the example.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is a personal loan EMI calculated?
The same reducing-balance EMI formula is used: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the monthly rate and n the number of months.
Should I choose a longer tenure to lower the EMI?
A longer tenure lowers the EMI but raises the total interest. Pick the shortest tenure you can afford.
Can I repay a personal loan early?
Usually yes, though some lenders charge a foreclosure fee. Check the terms and test the saving with the prepayment calculator.
Related calculators
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- Car Loan EMI CalculatorCalculate the EMI and total interest on a car loan, then compare tenures to find a payment that fits your budget.
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