Personal Loan EMI Calculator

Understanding the result

Personal loans are unsecured, so rates run higher than on home or car loans, and a few points of rate move the total interest a lot. Compare offers by total interest and APR, not only by EMI.

A flat rate is charged on the full loan for the whole tenure, even as you repay it. Equivalent reducing rate is the reducing-balance rate with the same EMI, the figure to compare with other offers.

Fees come out of the loan, so you receive less than you repay interest on. APR folds them into one yearly rate: the rate at which the amount you receive is repaid by the EMIs. It assumes every EMI is paid as agreed, with no prepayments or foreclosure charges.

How to use it

• Personal loan amount — the amount the lender sanctions, before fees are taken from it.
• Interest type — Reducing balance, the rate charged each month on what is still owed, or Flat, the rate charged on the full loan for the whole tenure. It opens on reducing balance.
• Fees and charges (incl. GST) — the processing fee, insurance and other charges taken from the loan, in rupees (₹) or as a percentage of the loan (%). It opens at 2.36%, a 2% fee plus 18% GST; enter 0 for a loan with none. Charges always leave at least ₹ 1 to receive.
• Annual interest rate — the yearly rate your lender quotes, from 0.1% to 50%. Under Flat the field reads Flat rate (% a year).
• Loan tenure — in years (1 to 50) or months (1 to 600). Switching the unit keeps the length: 10 years becomes 120 months, and months round to the nearest year.
• First EMI — the month and year of EMI no. 1. It opens on next month, and dates the schedule.

The results beside these show the monthly EMI, the total interest and the total you repay, the amount you receive and the APR while there are charges, and the equivalent reducing rate under Flat, with a chart of principal against interest. Add prepayments opens one extra payment and shows what it changes.

• How often — monthly, yearly or one-time. It opens on yearly.
• Prepayment — the extra amount, paid on top of the EMI. It opens at ₹ 10,000; an empty field prepays nothing.
• From EMI no. — the EMI the first prepayment is paid with, as numbered in the # column of the schedule; later ones follow every month or every 12 months. For a one-time prepayment the field reads At EMI no. It opens at 12, the twelfth EMI, and the month that EMI falls in shows below it.
• After a prepayment — Reduce tenure keeps the EMI and ends the loan sooner; Reduce EMI keeps the tenure and lowers the EMI.

For a loan already running, enter the balance still owed and the tenure left, so EMI no. 1 is your next EMI.

Beside the prepayment the tool shows the interest saved, when the loan is paid off or what the EMI falls to, the total prepaid and the total interest with prepayments. The amortization schedule lists every month's date, opening balance, EMI, extra payment, interest, principal and closing balance, with the months of a prepayment highlighted. Yearly sums it into years: the EMIs paid, extra payments, interest and principal of each year, and its closing balance. Loan Year counts twelve months from the first EMI, Calendar runs January to December and Financial runs April to March, the year income-tax claims follow. A first or last year shorter than twelve months shows how many it covers. Export CSV downloads the view shown.

How the EMI is calculated

Interest is charged each month on the balance still owed, so early EMIs are mostly interest and later ones mostly principal. The EMI stays the same throughout, which is why the schedule shows the interest part shrinking month by month.

A prepayment is counted with that month's EMI: it comes off the month's closing balance, and interest is lower from the next month. Under Reduce tenure the EMI stays and the last instalment is whatever clears the balance. Under Reduce EMI the EMI is worked out again after each prepayment, on the balance left over the months left. A prepayment larger than the balance is cut to the balance and closes the loan.

The EMI is rounded to the nearest rupee. Total interest and total payment use the exact EMI, so they can differ by a few rupees from adding up the rounded monthly figures.

Interest is charged in whole months. When a loan is paid out partway through a month, lenders charge interest for the extra days separately (broken-period interest); that is not included.

Under Flat the EMI is the loan plus the flat interest on all of it, spread over the months. The tool finds the reducing-balance rate with that EMI and runs the schedule on it, so its totals match the flat loan's and a prepayment is worked as on a reducing loan.

The APR is worked as in the Reserve Bank of India's Key Facts Statement example: the monthly rate at which the amount you receive equals the EMIs discounted month by month (the IRR), times 12. It uses the exact EMI, before rounding to the rupee.

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P = loan amount, r = annual rate ÷ 12 ÷ 100, n = tenure in months

Interest saved = total interest with no prepayments − total interest with them

Flat EMI = P × (1 + flat rate ÷ 100 × n ÷ 12) ÷ n

Amount received = Σ EMI ÷ (1 + i)ᵏ for k = 1 to n; APR = i × 12 × 100

Examples

Personal loan EMIs over 3 years

APR and charges for prepaying

For retail loans sanctioned on or after 1 October 2024, a bank gives you a Key Facts Statement before you sign, and it includes the APR and a repayment schedule. The Reserve Bank of India defines the APR as the annual cost of credit to the borrower, including the interest rate and all other charges associated with the loan. Charges the bank collects for others, such as insurance and legal charges, count too.

The RBI's example works the APR on the amount paid out, by the IRR method on a reducing balance: ₹ 20,000 at 15% over 24 months with ₹ 400 of charges gives 17.07%. Entered here, the tool gives the same.

The interest saved is shown before any charge your lender makes for prepaying. Ask your lender whether a part-payment shortens the tenure or lowers the EMI; the tool shows both.

For loans sanctioned or renewed on or after 1 January 2026, the Reserve Bank of India bars banks, co-operative banks and NBFCs from charging for the prepayment of a floating-rate loan given to an individual for a purpose other than business. That holds for a part or a full prepayment, from any source of funds, with no minimum lock-in period.

On other loans, a fixed-rate loan among them, a charge follows the lender's own policy and is based on the amount prepaid. It applies only if the sanction letter and loan agreement state it.

Sources

• Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Directions, 2025 (RBI/DOR/2025-26/170), paragraphs 2(3) and 348(3)–(4) — Reserve Bank of India
• Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 (RBI/2025-26/64) — Reserve Bank of India

Reviewed 10 October 2026

Frequently asked questions

See also

• EMI Calculator — for any other loan, with the same prepayment options.
• Simple Interest Calculator — for the interest on a flat rate alone: simple interest on the full loan.