Personal Loan EMI Calculator

What is a Personal Loan EMI Calculator?

A Personal Loan EMI Calculator is an online tool used for determining EMI of your personal loan against various combinations of loan amounts, interest rates and tenures. For the same set of values, the tool also calculates the interest cost and total amount payable.

Benefits of an Online Personal Loan EMI Calculator

With the help of a Personal loan EMI calculator, you can get an estimate of your EMIs before making the loan application, thereby, helping you to:

• Know your EMI affordability
• Determine optimum loan tenure
• Plan your finances better to ensure timely loan repayments

What is the formula used for personal loan EMI calculation?

The mathematical formula for calculating personal loan EMI is [P x R x (1+R)^N]/[(1+R)^N-1], where:

‘P’ is the Principal Amount,

‘R’ is the Rate of Interest, and

‘N’ is the Loan Tenure (in months)

Instead of manually calculating your personal loan EMI using the aforementioned formula, use an online personal loan EMI calculator to get quick and accurate results.

Comparing Personal Loan EMIs of Leading Banks and NBFCs

Note: Interest rates as of 4 April 2025

Also Check: Which bank is the best for personal loans?

What are the charges applicable on missing your personal loan EMI(s)?

On missing your personal loan EMI(s) payments, you might have to pay these charges over and above the actual EMI payable:

• Penal interest charges: These charges are also known as overdue interest charges and are levied on the overdue EMIs till the date of their repayment.
• Cheque/NACH/SI bounce charges: These charges are applicable when a personal loan EMI payment fails due to insufficient account balance or the closure of the account used for making EMI payments. This is usually a fixed charge levied each time an automated EMI deduction fails or the post-dated cheque bounces.

Also Look Into: Other fees and charges related to personal loans

Can my personal loan EMI change during the loan tenure?

Yes, even though your personal loan EMI is usually a fixed amount, it can change during the loan tenure under certain circumstances:

• In case of loan prepayment: After prepaying your personal loan, you can either reduce EMIs for the same tenure or reduce the tenure for the same EMIs. So, you can choose to reduce EMIs if current EMI amount is causing strain in your finances. Otherwise, reducing tenure is more beneficial as doing so will reduce your loan’s overall interest cost.

Read in Detail: Pros and Cons of Personal Loan Prepayment

• In case of rate change in the floating interest rate: Some lenders offer personal loans at floating rate of interest, which are linked to their external benchmark rates. When these benchmark rates change, the rate of interest applicable also changes. In case of an increase in the floating interest rate, if the borrower permits, the lender may extend the loan tenure while keeping the EMIs same. In case the new tenure goes beyond the maximum period permitted, then the lender may increase your EMI.

How to reduce personal loan EMI?

To reduce your personal loan EMI payments, you can consider:

• Making prepayments whenever possible: When you partly prepay a loan, you pay a portion of the outstanding loan amount early, which in turn gives you a choice to either reduce EMI or tenure. Go for lower EMIs only when you are struggling to repay your existing EMIs. If not, tenure reduction is wiser choice as it will help you save more on your loan’s overall interest cost.

Personal loans usually have a lock-in of one year after which you can make partial or full loan prepayments. Depending on the lender, prepayments may also incur prepayment charges.

• Transferring your personal loan: You can also consider transferring your personal loan to another lender offering lower interest rates. Some lenders may also offer longer tenure for personal loan balance transfer. But before opting for personal loan balance transfer, do a detailed cost-benefit analysis to ensure the amount you save on the interest is significantly higher than the costs incurred during the loan transfer. An online EMI calculator for personal loan can help you check how much you can save by reducing your EMIs before you opt for the balance transfer.

Note that your existing lender may charge prepayment/foreclosure fees if the loan was availed at fixed interest rates. Additionally, the new lender may charge processing fee, administrative fee, etc. on the transferred loan.

What factors affect personal loan EMI?

The key factors affecting your overall EMI amount payable include the following:

• Loan Principal: The higher the amount borrowed as a personal loan, the higher will be your EMI as long as the tenure and interest rate remain constant.
• Interest Rate: The higher the personal loan interest rate, the higher will be your individual EMI payout as well as the total interest payable on your personal loan.
• Tenure: Opting for a longer tenure would lead to lower EMI, but would lead to higher interest cost.

FAQs on Personal Loan EMI Calculator

What is a personal loan EMI?

An Equated Monthly Instalment (EMI) is a fixed amount that a personal loan borrower pays every month on a specified date to its lender. Like most other loans, a personal loan EMI too comprises the principal component and the interest component so that the entire loan gets paid off over the loan tenure.

How can a Personal Loan EMI Calculator help me?

Using a personal loan EMI calculator before making the loan application will help you get an estimate of your personal loan EMIs. This will further help you in choosing optimum tenure for your proposed personal loan based on your repayment capacity.

How does a Personal Loan EMI Calculator work?

A personal loan EMI calculator calculates the proposed personal loan’s EMI and interest cost on the basis of three basic inputs provided by the user, i.e., the loan amount, interest rates and loan tenure. Additional fees and charges such as processing fees, documentation charges, etc. that may be applicable are not considered by this calculator.

How is personal loan EMI calculated?

A personal loan EMI is calculated using this formula – P x R x (1+R)^N] / [(1+R)^N-1], where P is the loan amount, R is the interest rate and N is the tenure (in years). As manual calculations are time-consuming and prone to human errors, consumers can save their time and efforts by using a personal loan EMI calculator. The calculator requires just a few loan details from users such as the loan amount, interest rate and tenure to give the required results.

How is personal loan interest calculated?

The interest on a personal loan is calculated on the basis of the loan amount, interest rate and tenure. Prospective and existing borrowers can use a personal loan EMI calculator to get the required results.

How can a Personal Loan EMI Calculator help in making the loan selection?

A personal loan EMI calculator can help you compare the total interest cost of various personal loan offers from multiple lenders based on the offered loan amount, interest rates and tenures and then, choose the optimum option as per your EMI affordability.

What method of EMI calculation do most banks use?

Lenders usually use the reducing balance method to calculate the EMI applicable on a personal loan. The EMI calculators for personal loans, available online on lenders’ website and other websites, also use this EMI calculation method to give you results.

How can I change my personal loan EMI date?

In case you want to change your personal loan EMI date, you should contact your lender. The process to initiate this change may vary from one lender to another.

How can I pay my personal loan EMI?

You can pay your personal loan EMIs by issuing Standard Instructions (SI) or NACH mandate to your bank or by submitting post-dated cheques to your lender. Some lenders also offer the option of direct deduction of EMIs by your employer.

What are the benefits of knowing personal loan EMI in advance?

Knowing personal loan EMI before taking the loan would help you in planning your finances better, Calculating personal loan EMI beforehand would also help you in knowing your EMI affordability and in determining your optimum loan tenure, without compromising your monthly contributions towards crucial financial goals.