Personal Loan EMI Calculator
A personal loan EMI is the fixed amount you repay each month on an unsecured personal loan. Use this personal loan EMI calculator to instantly find your monthly instalment, the total interest you'll pay, and how the repayment divides between principal and interest — so you can borrow an amount you can comfortably repay.
- Principal
- ₹5,00,000
- Total Interest
- ₹1,98,048
- Total Payment
- ₹6,98,048
Monthly EMI
₹11,634
- Principal72%
- Interest28%
Formula
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
- P
- Principal — the personal loan amount you borrow.
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100.
- n
- Loan tenure in months (years × 12).
Personal loans are unsecured, so interest rates are higher than secured loans like home or car loans, and tenures are shorter (usually 1–7 years).
Worked example
Suppose you take a personal loan of ₹5,00,000 at 14% per annum for a tenure of 5 years (60 months).
- Loan Amount (P)
- ₹5,00,000
- Annual Interest Rate
- 14%
- Tenure
- 5 years (60 months)
The monthly EMI is about ₹11,634. Over 5 years you repay roughly ₹6,98,048 in total — about ₹1,98,048 of which is interest on top of the ₹5,00,000 you borrowed.
Year-by-year repayment breakdown
Based on the default Personal Loan EMI Calculator values above — the loan amount, interest rate and tenure shown in the calculator. Adjust the sliders to recalculate your own figures.
- Monthly EMI
- ₹11,634
- Total interest
- ₹1,98,048
- Total payment
- ₹6,98,048
- Interest / principal
- 40%
In the first year, about 47% of what you pay goes towards interest rather than reducing the balance. From year 1 onwards, more of each year's payments goes to principal than to interest.
| Year | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| 1 | ₹74,253 | ₹65,355 | ₹1,39,608 | ₹4.26 Lakh |
| 2 | ₹85,342 | ₹54,266 | ₹1,39,608 | ₹3.40 Lakh |
| 3 | ₹98,087 | ₹41,521 | ₹1,39,608 | ₹2.42 Lakh |
| 4 | ₹1,12,735 | ₹26,872 | ₹1,39,607 | ₹1.30 Lakh |
| 5 | ₹1,29,583 | ₹10,036 | ₹1,39,619 | ₹0 |
How the personal loan EMI calculator works
Move the sliders for loan amount, interest rate and tenure to see your EMI update in real time, along with a breakdown of how much you pay in interest versus principal. Because personal loan rates are higher than secured loans, the interest portion can be significant — the chart makes that clear at a glance.
Borrowing responsibly with a personal loan
Personal loans are quick to get and flexible, but the higher rate makes them costly if you over-borrow or stretch the tenure. Borrow only what you need, and aim for the shortest tenure whose EMI still fits comfortably alongside your other commitments.
Tips to reduce your personal loan cost
- Improve your credit score before applying to qualify for a lower rate.
- Compare offers across lenders — rates vary widely for the same borrower.
- Pick the shortest affordable tenure to cut total interest.
- Prepay when you have surplus funds, after checking foreclosure charges.
Frequently asked questions
How is personal loan EMI calculated?
Personal loan EMI uses the reducing-balance formula EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate and n is the tenure in months. This calculator applies it instantly.
Why are personal loan interest rates higher?
Personal loans are unsecured — there's no collateral like a house or car backing them — so lenders charge a higher interest rate to offset the added risk. Rates typically range from around 10% to 24% depending on your credit profile.
Does a shorter tenure save money on a personal loan?
Yes. A shorter tenure means a higher monthly EMI but noticeably less total interest, because you're borrowing for less time. Use the tenure slider to compare the EMI and total interest at different tenures.
Can I prepay or foreclose a personal loan?
Most lenders allow prepayment or foreclosure, sometimes with a small fee. Paying off early reduces the interest you pay overall. Check your loan agreement for any foreclosure charges before prepaying.
What affects my personal loan eligibility and rate?
Your income, credit score, existing EMIs and employment history all affect both how much you can borrow and the interest rate offered. A higher credit score usually means a lower rate and a smaller EMI for the same loan.