Personal Loan EMI Calculator
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Personal Loan EMI Calculator summary
Calculation schedule
Figures may be rounded for display.
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Personal loan EMI formula
A reducing-balance EMI pays that month’s interest first. The rest of the payment reduces the loan principal.
Monthly rate = yearly rate ÷ 12 ÷ 100 EMI = principal × rate × (1 + rate)^months ÷ ((1 + rate)^months − 1) Total repayment = EMI × number of months Total interest = total repayment − principal Processing fee = principal × fee rate
At a zero interest rate, EMI is simply the loan amount divided by the number of months.
A fee taken from the disbursed money can make the effective borrowing cost higher than this simple fee display.
Example with numbers
A ₹10,00,000 personal loan at 12% for 60 months has an EMI of about ₹22,244. Total interest is about ₹3.35 lakh and total instalments are about ₹13.35 lakh before fees.
What is a personal loan EMI calculator?
EMI means Equated Monthly Instalment. It is the regular payment used to repay loan principal and interest over a set time.
This calculator estimates the EMI from the loan amount, reducing-balance rate and tenure. It also shows how much of each year goes towards principal and interest.
How to use the personal loan EMI calculator
- Enter the personal loan amount.
- Enter the yearly reducing-balance interest rate.
- Enter the loan tenure in months.
- Add a processing-fee percentage if needed, then check EMI, interest and repayment.
What the results mean
- Monthly EMI: the estimated equal monthly payment.
- Total interest: all scheduled instalments minus principal.
- Total repayment: principal plus scheduled interest.
- Processing fee: the optional percentage entered by you.
How this personal loan calculation works
Interest is worked out each month on the opening balance. Early EMIs contain more interest. Later EMIs usually contain more principal.
The final schedule row is adjusted for small rounding differences so a tiny balance is not left after the last payment.
Why a personal loan EMI calculator is useful
- It shows EMI before you compare loan offers.
- It separates principal from total interest.
- It can display an entered processing fee.
- The schedule shows how the balance falls over time.
Why the lender may quote another amount
The sanction letter may include taxes, insurance, documentation cost, broken-period interest or a fee deducted before payment.
A flat interest rate is not the same as a reducing-balance rate. Use the lender’s reducing rate or disclosed annual percentage rate for a fairer comparison.
Sources
- Reserve Bank of India: financial education material
- Reserve Bank of India: Key Facts Statement for loans and advances
Rule and source review: Reducing-balance method and consumer-source links reviewed 31 August 2026.
Disclaimer
This personal loan EMI calculator gives a reducing-balance estimate. It is not a loan offer or approval. Check the lender’s Key Facts Statement, annual percentage rate, fees, insurance, penalties and repayment schedule before borrowing.
Frequently asked questions
How is personal loan EMI calculated?
It uses the loan amount, monthly reducing-balance rate and number of monthly payments.
Does a longer tenure reduce EMI?
It usually lowers the monthly EMI, but it can increase total interest because the loan runs longer.
Is processing fee included in EMI?
Normally it is shown separately here. The lender may deduct or collect it in another way.
What happens when the interest rate is zero?
The loan amount is divided equally by the number of months.
Why is the lender’s EMI different?
The lender may use another rate, disbursal date, fee, insurance cost or rounding method.