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Personal loan EMI calculator

Written and reviewed by Omm · Last reviewed · General information, not investment advice

Personal loans are unsecured and usually carry a higher interest rate and a processing fee. Enter the amount, the rate, the tenure and the fee to see what the loan will really cost, and what prepaying would save.

Between 10000 and 1000000000

Interest rate is quoted as
%

Between 0 and 40

years

Between 1 and 10

Prepayment and fees
%

Between 0 and 10

Between 0 and 10000000

Between 0 and 1000000000

Between 1 and 120

Your EMI is ₹10,253 a month. Over the loan you pay ₹69,118 in interest, which is 23.04% of the amount you borrow.

Monthly EMI

₹10,253

Total interest

₹69,118

Total you pay (loan + interest + fee)

₹3,75,118

Interest as % of the loan

23.04%

Processing fee

₹6,000

Year 1Year 3
Balance leftInterest paid so far
Year-by-year breakdown
YearPrincipal paidInterest paidBalance left
1₹86,447₹36,592₹2,13,553
2₹99,357₹23,682₹1,14,196
3₹1,14,196₹8,844₹0

How it works

EMI = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1) where P = loan amount, i = yearly rate ÷ 12, n = months. Total cost = EMI × n + processing fee

The EMI is worked out on the reducing-balance method: each month interest is charged on the balance you still owe and the rest of the EMI repays the loan. The calculator shows the EMI, the total interest and a year-by-year schedule.

Because personal loan rates are higher, the interest is a big share of what you repay, especially over a long tenure. Try a shorter tenure to see how much interest it saves, and check whether you can afford the higher EMI.

The processing fee, usually a percentage of the loan, is paid once and added to the total you pay. Taxes on the fee, insurance if you take it, and late fees are not included. If your lender quotes a flat rate, switch the rate type to see the true yearly rate.

Prepaying part of a personal loan can save a lot of interest. Rules on prepayment charges vary by lender and loan, so check your agreement first.

Example. A ₹3,00,000 personal loan at 14% for 3 years has an EMI of about ₹10,253. You pay about ₹69,118 in interest and ₹6,000 as a 2% processing fee, so the loan costs about ₹3,75,118 in all.

Read the guide: How an EMI works: home, car and personal loans, flat vs reducing rate.

Frequently asked questions

How is a personal loan EMI calculated?

EMI = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1), where P is the amount, i is the yearly rate divided by 12 and n is the number of months. The formula is shown on this page.

Why are personal loan rates higher?

Personal loans are usually unsecured, with nothing pledged against them, so lenders charge more for the higher risk. Your rate depends on your credit record, income and the lender.

How can I reduce the interest on a personal loan?

Choose the shortest tenure you can afford, compare lenders on the true yearly rate and fees, and prepay when you have spare money. The calculator shows what a shorter tenure and prepayment save.

Is the interest on a personal loan tax deductible?

Generally not, unless the money is used for something the tax rules allow a deduction for. This calculator does not include any tax effect; check the current rules for your case.

What is a processing fee on a personal loan?

A one-time charge, usually a percentage of the loan, that the lender deducts when the loan is paid out. You receive less than the loan amount but repay the full amount with interest, so the fee raises the real cost. Enter it under "Prepayment and fees" to see the total.

Can I close a personal loan early?

Usually yes, but many lenders charge a foreclosure fee on fixed-rate personal loans and some do not allow it in the first months. Compare the fee with the interest you would save; the calculator shows the saving from a one-time prepayment.

What is the personal loan EMI per ₹1 lakh?

For every ₹1,00,000 borrowed for 3 years, the EMI is ₹3,274 at 11%, ₹3,418 at 14% and ₹3,615 at 18%.

Sources

Rules, rates and definitions on this page come from these official sources. Check the current position there before you decide.

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