Loans & EMI
Personal Loan
Personal loan EMI calculator
About the Personal Loan calculator
Free Personal Loan Calculator for unsecured loan EMI calculation. Get instant EMI for medical expenses, travel, debt consolidation & emergency needs.
How the maths works
Personal Loan EMI Formula
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]- P
- Principal loan amount
- R
- Monthly interest rate
- N
- Number of monthly installments
A worked example
Personal Loan Example
| Loan Amount | ₹5,00,000 |
| Interest Rate | 12% per annum |
| Tenure | 5 years |
Monthly EMI: ₹11,122
How to use it
- Enter the required loan amount
- Input the interest rate offered
- Choose the repayment tenure
- Get instant EMI and total cost calculation
What it accounts for
- Calculate personal loan EMI
- Compare different loan amounts
- Analyze various tenure options
- Understand total interest cost
- Plan repayment strategy
Why it is worth working out
- Quick access to funds without collateral
- Flexible usage for any personal need
- Fixed EMI for better budgeting
- No restrictions on end-use
Questions people ask
Why are personal loan rates so much higher than home loan rates?
A personal loan is unsecured — there is no asset the lender can take if you stop paying — so the rate carries the full default risk. Expect 11% to 24% against 8% to 9% for a home loan. The gap is the price of not pledging anything.
What does a personal loan really cost?
The advertised rate plus a processing fee of 1% to 3%, GST on that fee, and often a prepayment penalty of 2% to 5% if you clear it early. A "10.99%" loan with a 2% fee on a two-year term has an effective cost closer to 13%.
Is a personal loan better than a credit card?
Almost always, if the alternative is revolving a card balance. Cards charge 36% to 48% a year and the minimum payment is engineered to keep you there. A personal loan at 15% with a fixed end date is a large improvement — but consolidating and then running the cards back up is the trap that follows.
Can I prepay a personal loan?
Usually after a lock-in of 6 to 12 instalments, and usually with a penalty on the outstanding principal. Floating-rate loans to individuals cannot be charged a foreclosure fee, but most personal loans are fixed-rate, so the penalty applies. Compare the penalty against the interest you would save before deciding.
Read more on this
- The minimum due is a product, and you are what it sells — Paying 5% of the balance on a card charging 42% a year takes over a decade to clear and costs more than the original purchase. The mechanics, and how to get out.
- The personal loan rate you were quoted is not the rate you are paying — Processing fees, flat-rate quoting and insurance bundling routinely add three to eight percentage points to the advertised number.
This calculator is for information and education. It is not financial advice — see the disclaimer.