Personal loan EMI calculator
Work out the monthly EMI and the true interest cost of an unsecured personal loan before you borrow. Because rates are high, the calculator makes the total cost of a longer tenure impossible to miss.
Loan details
Tweak the numbers — results update live
₹5L
Principal
amount borrowed
₹1.98L
Total interest
over the tenure
₹6.98L
Total payable
principal + interest
Principal vs interest
What you repay over 5 years
- Principal₹5L
- Interest₹1.98L
Year-by-year schedule
How the balance falls as you repay
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹74,253 | ₹65,355 | ₹4,25,747 |
| 2 | ₹85,342 | ₹54,266 | ₹3,40,405 |
| 3 | ₹98,087 | ₹41,521 | ₹2,42,318 |
| 4 | ₹1,12,736 | ₹26,872 | ₹1,29,583 |
| 5 | ₹1,29,583 | ₹10,036 | ₹0 |
Monthly EMI
₹11,634
Borrow wisely
High rate, short fuse
A personal loan is fast and collateral-free, but it’s the most expensive everyday borrowing. The way to keep it cheap is simple: borrow only what you need, get the best rate your credit score allows, and repay it quickly.
- 1
Borrow the minimum
Every extra rupee carries 10–24% interest. Take only what you truly need.
- 2
Your score sets the rate
A 750+ CIBIL score earns a lower rate — and a lower rate is a lower EMI and less total interest.
- 3
Repay fast
Short tenures save a lot here. Stretching the loan multiplies interest quickly.
- 4
Count the fees
A 1–3% processing fee and possible foreclosure charges sit outside the EMI. Compare the APR.
Questions
Frequently asked
How is personal loan EMI calculated?
Personal loan EMI uses the reducing-balance formula EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. Personal loans are unsecured, so rates are higher than secured loans — typically 10–24% — and tenures are shorter, usually 1 to 7 years.
Why are personal loan interest rates so high?
A personal loan is unsecured — there’s no house or car backing it — so the lender takes more risk and charges more. Your rate depends heavily on your credit score, income and employer. A strong CIBIL score (750+) can fetch a noticeably lower rate, which over the tenure saves real money.
What tenure should I pick for a personal loan?
Pick the shortest tenure whose EMI you can comfortably afford. Because the rate is high, stretching the tenure inflates total interest quickly. A 2–3 year loan costs far less in interest than the same loan over 5–7 years, even though the monthly EMI is larger.
What is the processing fee on a personal loan?
Lenders charge a one-time processing fee, commonly 1–3% of the loan amount, deducted upfront or added to the loan. This is separate from the EMI shown here. Some lenders also levy prepayment or foreclosure charges, so check the all-in cost (APR) before borrowing.
Does my credit score affect the EMI?
Indirectly, yes. Your credit score determines the interest rate you’re offered, and the rate drives the EMI. A higher score → lower rate → lower EMI and less total interest. Improve your score before applying, and enter your expected rate above to see the EMI it produces.
Can I prepay a personal loan to save interest?
Yes, and on a high-rate loan it’s especially worthwhile. Prepaying reduces the outstanding principal so future interest is charged on a smaller balance. Watch for any foreclosure fee in your agreement; even with a small fee, prepaying a high-interest personal loan early usually comes out ahead.