Personal loan EMI calculator

Follow these steps to calculate your personal loan EMI:

1. Enter the loan amount: Add the amount you wish to borrow, ranging from Rs. 40,000 to Rs. 75 lakh.
2. Select the repayment tenure: Choose a suitable tenure between 12 months to 108 months based on your repayment capacity and preferred EMI amount.
3. Add the interest rate: Enter the applicable interest rate to calculate the estimated EMI based on your loan details.
4. View your EMI details: The calculator displays your estimated monthly EMI, total interest payable, and total repayment amount.
5. Adjust loan details if required: Modify the loan amount or tenure to understand how changes affect your EMI. A longer tenure may reduce the monthly instalment, while a shorter tenure may increase it but reduce the overall interest payable.

Using the EMI calculator before applying for a personal loan helps you plan your repayment better and choose an EMI that suits your budget.

The personal loan EMI calculator uses this formula to provide quick estimates of your monthly repayment amount. 

Formula:

EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N − 1]
 

Where:

Example of EMI calculation

Assume you take a personal loan of Rs. 10 lakh for 5 years at an interest rate of 10% p.a.

Assume you take a personal loan of Rs. 10 lakh for 5 years at an annual interest rate of 10%. You can use the Personal loan EMI Formula to calculate your monthly EMI, total interest payable and total repayment amount.

Step 1: Identify the loan details

Step 2: Apply the Personal loan EMI Formula

The formula to calculate your monthly EMI is:

EMI = [P × R × (1 + R)ᴺ] ÷ [(1 + R)ᴺ − 1]

Here:

• P = Principal loan amount
• R = Monthly interest rate
• N = Total number of monthly instalments

Substituting the values:

EMI = [10,00,000 × 0.008333 × (1 + 0.008333)⁶⁰] ÷ [(1 + 0.008333)⁶⁰ − 1]

Estimated monthly EMI = Rs. 21,247

Step 3: Calculate the total repayment amount

Multiply the monthly EMI by the total number of instalments.

Total repayment = Rs. 21,247.04 × 60

Total repayment = approximately Rs. 12,74,823

Step 4: Calculate the total interest payable

Subtract the original loan amount from the total repayment amount.

Total interest = Total repayment − Principal loan amount

Total interest = Rs. 12,74,823 − Rs. 10,00,000

Total interest payable = approximately Rs. 2,74,823

These figures are estimates and may vary slightly due to rounding. Use a personal loan EMI calculator to compare repayment tenures, estimate your monthly instalment and understand the total borrowing cost before applying for a loan.
 

What will your monthly EMI be for your loan amount and tenure?
 

Your monthly EMI depends on the loan amount, interest rate and repayment tenure. A higher loan amount generally increases your EMI, while a longer tenure reduces the monthly instalment but may increase the total interest payable. The table below shows estimated EMIs at an assumed interest rate of 10% p.a. Use these figures to compare repayment options and understand how different loan amounts and tenures affect your monthly payments.

Estimated monthly EMIs at 10% p.a.

Note: These are illustrative figures based on an assumed interest rate of 10% p.a. Actual EMIs may vary based on the applicable interest rate, loan amount and tenure.

A personal loan EMI can be reduced through a few practical changes before or after taking a loan. These steps can help manage monthly repayments while keeping the total borrowing cost in check.

• Extend the tenure: Choose a longer repayment period to lower the EMI, but expect to pay more interest overall.
• Make part-prepayments: Use surplus funds to reduce the outstanding principal and request a lower EMI, subject to loan terms and charges.
• Negotiate the interest rate: Maintain a good CIBIL Score and compare lenders to find a lower rate.
• Reduce the loan amount: Borrow only what is needed to lower the EMI and total interest.
• Compare the total cost: Check processing fees, interest and other charges before choosing a loan.