Finance
Find your monthly EMI, total interest, and total payment in seconds.
Monthly EMI
₹8,198₹
Fixed equated monthly instalment
This calculator uses the reducing-balance EMI formula. Actual payments may vary depending on your lender's terms, fees, and policies.
A personal loan calculator is a financial tool that computes your monthly instalment (EMI), total interest charges, and payment schedule based on three inputs: principal amount borrowed, annual interest rate, and loan duration in months or years. It instantly shows what portion of each payment goes toward principal versus interest, helping you understand the true cost of borrowing.
The calculator uses the standard EMI formula to divide your loan into equal monthly payments. It multiplies the principal by the monthly interest rate, adjusts for the number of remaining payments, and distributes your money across principal repayment and interest. As months pass, each payment contains less interest and more principal—a pattern called amortisation—until the loan is fully repaid.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]P is the principal (loan amount), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of months. The formula ensures your monthly payment stays fixed throughout the loan term.
| Input | Result | Notes |
|---|---|---|
| Principal: Rs 3,00,000 | Rate: 10% p.a. | Tenure: 24 months | EMI: Rs 13,900 | Total interest: Rs 33,600 | Total repayment: Rs 3,33,600 | A common personal loan for emergency funds shows how Rs 3 lakh costs roughly Rs 33k in interest over two years. |
| Principal: Rs 5,00,000 | Rate: 9% p.a. | Tenure: 60 months | EMI: Rs 10,638 | Total interest: Rs 38,280 | Total repayment: Rs 5,38,280 | Longer tenure spreads cost over 5 years, reducing monthly burden but increasing total interest by Rs 5k compared to a 48-month loan. |
| Principal: Rs 2,00,000 | Rate: 12% p.a. | Tenure: 36 months | EMI: Rs 6,689 | Total interest: Rs 40,804 | Total repayment: Rs 2,40,804 | Higher interest rates (12%) mean 20% of the principal goes to interest alone; shopping around for lower rates saves thousands. |
Personal loans are unsecured, so rates are higher (8–15%); home loans are secured by property, so rates are lower (6–9%). The EMI formula is identical, but a personal loan of Rs 5 lakh at 12% costs more per month than a Rs 50 lakh home loan at 7%.
Interest is calculated on the outstanding principal each month. Your first month's payment covers a full month's interest on the entire principal, leaving less for principal repayment. As you pay down the balance, interest shrinks and principal grows each month.
Most banks allow prepayment, but some charge a penalty (1–3% of outstanding balance). Always check your loan agreement. Early prepayment saves significant interest—a Rs 3 lakh loan prepaid after 12 months instead of 24 saves roughly Rs 15,000–20,000 in interest.
Rates often vary: a 36-month tenure might be 10%, but 60 months could be 11%. Run the calculator for both scenarios to see if the lower rate on a shorter term saves money despite higher EMI.
Floating rates change with market benchmarks (MCLR, PLR). The calculator uses a fixed rate; for floating loans, use the current rate and revisit the calculator when rates change. Your EMI may adjust after each rate reset.
It depends on your cash flow. A longer tenure lowers EMI but increases total interest significantly. For Rs 3 lakh at 10%: 24 months = Rs 13,900 EMI (Rs 33k interest), vs. 60 months = Rs 6,330 EMI (Rs 79.8k interest). Choose based on your budget and repayment capacity.