Personal Loan EMI Calculator
Calculate monthly EMI, total interest, and payment schedule
Loan Details
Payment Timing: End of Month (Standard)
Monthly EMI
₹22,244
Total Payment
₹13,34,667
Total Interest
₹3,34,667
Payment Progress
Personal Loan EMI
Borrowing in India has evolved far beyond the days of visiting your local bank branch and filling out endless paperwork. Today, personal loans can be approved within minutes, making them a go-to option for emergencies, lifestyle upgrades, or debt consolidation.
But before you sign up, it’s important to understand what EMI means, how it works, and how you can calculate it.
What is a Personal Loan?
A personal loan is an unsecured loan given by a bank, NBFC, or other financial institution to meet personal financial needs such as medical expenses, travel, home renovation, education, or debt consolidation. Since it’s unsecured, you don’t need to provide any collateral, but the interest rate is usually higher than secured loans.
What is Personal Loan EMI?
Fixed amount you pay every month to the bank or lender until your loan is fully repaid.
- Principal – The original loan amount you borrowed.
- Interest – The cost charged by the lender for letting you borrow the money.
For example: If you take a personal loan of ₹5 lakh at 12% annual interest for 5 years, your monthly EMI will be a fixed amount (calculated using a standard formula) until you repay the full amount.
How Personal Loan EMI Works
In the starting months of repayment, a larger portion of your EMI goes towards interest and a smaller share towards principal. Over time, as the principal reduces, the interest portion also decreases, and more of your EMI goes towards principal repayment.
Formula to calculate EMI
EMI = {P × r × (1 + r)^n} ÷ {(1 + r)^n - 1}
- P
- Loan amount
- r
- Monthly interest rate (Annual rate ÷ 12 ÷ 100)
- n
- Number of monthly instalments
Example of Personal Loan
Meera takes a personal loan of ₹5,00,000 from a bank to cover wedding expenses.
- Loan Amount: ₹5,00,000
- Interest Rate: 12% per annum
- Tenure: 5 years (60 months)
- EMI (approx.): ₹11,122 per month
| Month | EMI (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|---|
| 1 | 11,122 | 6,122 | 5,000 | 4,93,878 |
| 2 | 11,122 | 6,183 | 4,939 | 4,87,694 |
| 3 | 11,122 | 6,245 | 4,877 | 4,81,499 |
| … | ||||
| 59 | 11,122 | 10,903 | 219 | 11,012 |
| 60 | 11,122 | 11,012 | 110 | 0 |
Figures are illustrative; actual numbers vary by lender and rounding.
EMI
₹11,122 / month
Total Repayment
₹6,67,320
Total Interest Paid
₹1,67,320
Types of Personal Loan EMI Repayment Options
- Standard EMI: Fixed monthly payments for the entire tenure. Most common and predictable.
- Step-Up EMI: EMIs start low and gradually increase over time. Useful if your income is expected to grow.
- Step-Down EMI: EMIs start high and gradually decrease. Ideal if you want to repay faster in the beginning.
- Bullet Repayment: You pay only interest monthly and repay the principal in one lump sum at the end. Riskier but useful in certain cash-flow situations.
Benefits of Understanding Your EMI Before Borrowing
- Budget Planning: Helps you assess if you can comfortably manage the monthly outgo.
- Debt Control: Prevents over-borrowing and potential default.
- Comparison Shopping: Makes it easier to compare loan offers from different banks.
- Avoid Surprises: No last-minute shocks on repayment amounts.
What is a Personal Loan EMI Calculator and How It Helps
A Personal Loan EMI Calculator is an online tool that instantly shows you:
- Monthly EMI amount
- Total payment over the tenure
- Total interest paid
You just need to enter the loan amount, interest rate and tenure to get immediate results.
How to Use Finanjo’s Personal Loan EMI Calculator – Step-by-Step
- Enter your loan amount (e.g., ₹3,00,000)
- Enter the interest rate (e.g., 11%)
- Select tenure (e.g., 4 years)
- The calculator instantly updates the EMI, total interest and repayment schedule
