Personal Loan EMI Calculator
Work out the monthly EMI on a personal loan and how much interest you will pay in total. Enter the loan amount, the rate you have been offered and the tenure.
More options: processing fee
A loan of ₹5.00 lakh at 11% for 3 years costs ₹16,369 a month. Over 36 EMIs you pay ₹5,89,297, of which ₹89,297 is interest.
Uses the reducing-balance method that banks and NBFCs use. In the first month, ₹4,583 of your EMI goes to interest; the interest part falls every month after that.
Year-by-year repayment
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | ₹1,48,785 | ₹47,647 | ₹3,51,215 |
| 2 | ₹1,66,003 | ₹30,430 | ₹1,85,212 |
| 3 | ₹1,85,212 | ₹11,220 | ₹0 |
What is a personal loan EMI?
A personal loan is an unsecured loan from a bank or NBFC that you can use for almost anything. You repay it in equated monthly instalments (EMIs): the same amount every month, made up of interest on the balance still owed and a part of the loan itself. Early EMIs are mostly interest; later ones are mostly principal.
How the EMI is calculated
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P = loan amount
- r = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = tenure in months
Worked example
₹5,00,000 at 11% a year for 3 years:
- r = 11 ÷ 12 ÷ 100 = 0.009167, and n = 36
- EMI = ₹16,369
- Total paid = ₹5,89,297, so total interest = ₹89,297
- First EMI: ₹4,583 is interest and ₹11,786 repays the loan. After year 1 you still owe ₹3,51,215.
How rate and tenure change the cost
| ₹5 lakh loan | EMI | Total interest |
|---|---|---|
| 11% for 2 years | ₹23,304 | ₹59,294 |
| 11% for 3 years | ₹16,369 | ₹89,297 |
| 11% for 5 years | ₹10,871 | ₹1,52,273 |
| 14% for 3 years | ₹17,089 | ₹1,15,197 |
| 18% for 3 years | ₹18,076 | ₹1,50,743 |
A few percentage points on the rate cost as much as two extra years of tenure, so it pays to compare offers before you borrow.
Processing fee and the real cost (APR)
Most lenders charge a processing fee, commonly up to 2% to 3% of the loan, plus 18% GST, and take it out of the amount they pay you. You still repay EMIs on the full loan, so the real cost is higher than the quoted rate. On the example above, a 2% fee costs ₹11,800 with GST, you receive ₹4,88,200, and the APR is about 12.66% instead of 11%. Lenders must show the APR in the Key Fact Statement before you sign; compare APRs, not just interest rates. Add the fee under “More options” to see yours.
Prepaying a personal loan
Paying off part of the loan early cuts the interest you pay. RBI rules for loans sanctioned from 1 January 2026 ban prepayment charges on floating-rate loans to individuals for non-business purposes, but most personal loans are fixed-rate and can still carry a foreclosure charge. Check your Key Fact Statement, then use the Prepayment Calculator to see the saving.
When to use a different calculator
- Comparing two loan offers? Use the Loan Comparison Calculator.
- Buying a car? The Car Loan Calculator usually gets you a lower rate.
- Thinking of a credit card EMI instead? Read Personal loan vs credit card EMI.
