Personal Loan EMI Calculator
A personal loan EMI calculator helps you estimate the fixed monthly payment required to repay an unsecured personal loan over a chosen tenure. This monthly payment, known as EMI (Equated Monthly Instalment), includes both interest and principal repayment.
In addition to the monthly EMI, the calculator shows the total interest payable and the total amount you will repay over the entire loan period. This helps you assess not just monthly affordability, but also the overall cost of borrowing.
How the Calculation Works
Personal loan EMIs are calculated using a standard amortization formula. The annual interest rate is converted into a monthly rate, and the EMI is computed such that the loan is fully repaid through equal monthly payments by the end of the tenure.
While the EMI amount remains constant, the split between interest and principal changes over time. In the early months, a larger portion of the EMI goes towards interest. As the outstanding balance reduces, the principal component gradually increases.
- Interest is calculated on the outstanding loan balance
- EMI amount stays fixed for the selected tenure
- Early EMIs are interest-heavy; later EMIs repay more principal
- Loan tenure is handled internally in months
Inputs and Options Explained
The calculator uses three inputs that fully define a standard personal loan repayment schedule.
- Personal Loan Amount — The principal amount borrowed from the lender.
- Annual Interest Rate (%) — The nominal yearly rate charged by the lender, converted into a monthly rate for EMI calculation.
- Loan Tenure — The total repayment period. You can enter this in years or months, both representing the same duration internally.
Examples and Edge Cases
Personal loans typically carry higher interest rates than secured loans such as home or car loans. As a result, a longer tenure can significantly increase the total interest paid, even if the monthly EMI appears manageable.
The EMI shown is rounded to the nearest rupee for clarity. However, total repayment and total interest are calculated using the exact EMI value internally. This avoids small cumulative rounding differences over the full tenure.
Who Should Use This Tool
This calculator is useful for anyone planning or reviewing a personal loan under standard EMI-based repayment.
- Borrowers checking monthly affordability
- Individuals comparing tenure and interest options
- Anyone evaluating the true cost of an unsecured loan
Related Concepts
Personal loan EMIs follow the same core structure as other installment-based loans, but differ in risk and pricing.
- Amortization — The structured repayment of a loan through fixed EMIs.
- Principal — The original amount borrowed.
- Interest — The cost charged by the lender for borrowing money.
To compare secured loan options, you can also use a Home Loan EMI Calculator or a Car Loan EMI Calculator.