How is personal loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Interest is charged on the reducing balance.

Why are personal loan interest rates higher than home loan rates?

A personal loan is unsecured — there is no property or vehicle the lender can fall back on — so the lender prices in more risk. The rate offered also depends on your credit score, income stability and employer category.

How does tenure affect total interest on a personal loan?

A longer tenure lowers the EMI but increases total interest because the balance stays outstanding longer. At double-digit rates the difference between 3 and 5 years can be substantial.

Is the amount I receive the same as the loan amount?

Usually not. Most lenders deduct a processing fee and applicable GST from the disbursal, so the credit to your account is slightly lower while EMI is calculated on the full sanctioned amount.

Does this calculator tell me if I will be approved?

No. It only calculates the EMI and interest for the numbers you enter. Approval, eligibility and the final rate are decided by the lender.

Can prepaying a personal loan save interest?

Yes, because interest accrues on the outstanding balance. Check your loan agreement for foreclosure or part-payment charges and lock-in periods before prepaying.

Personal Loan Calculator

Calculate the monthly EMI, total interest and total repayment on an unsecured personal loan, with a year-wise schedule.

Under 20 seconds

Updated 26 Aug 2026

12,450people used this

Monthly EMI

₹11,505

Fixed instalment for 60 months at 13.5% p.a.

Total interest

₹1,90,295

27.6% of everything you repay.

Principal amount

₹5,00,000

The amount you borrow.

Total amount payable

₹6,90,295

Principal plus interest over the full tenure.

A personal loan calculator works out the monthly EMI on an unsecured loan from the amount, the annual interest rate and the tenure, using the reducing-balance method. Because personal loans are unsecured, rates are higher and tenures shorter than secured loans, so total interest is very sensitive to the rate you are actually offered.

Visual breakdown

A visual view of your calculation.

Interactive charts arrive here soon.

Repayment schedule

Year-by-year split of principal and interest on a reducing balance.

Year-by-year split of principal and interest on a reducing balance.
Year	Opening balance	Principal paid	Interest paid	Closing balance
1	₹5,00,000	₹75,093	₹62,966	₹4,24,907
2	₹4,24,907	₹85,882	₹52,177	₹3,39,025
3	₹3,39,025	₹98,221	₹39,838	₹2,40,805
4	₹2,40,805	₹1,12,333	₹25,726	₹1,28,472
5	₹1,28,472	₹1,28,472	₹9,587	₹0

Smart Insights

Generated from the numbers you entered — no guesswork.

A ₹5,00,000 personal loan at 13.5% for 5 years costs ₹1,90,295 in interest.
Interest is 27.6% of your total repayment of ₹6,90,295, or ₹38 for every ₹100 borrowed.
Repaying in 4 years instead raises the EMI to ₹13,538 but saves about ₹40,464 of interest.
Because the loan is unsecured, the rate you are offered depends on your credit profile — the quoted rate can differ from the advertised one.
Actual lender terms differ — processing fees, insurance and documentation charges are not included in this estimate.

How does the Personal Loan Calculator work?

Each step the calculator runs, in plain language.

1
Enter the amount you need
Personal loans are unsecured, so the sanctioned amount depends on income, existing EMIs and credit score rather than any collateral.
2
Use the rate you were quoted
Advertised rates are usually the best-case rate. Enter the rate on your offer letter to see a realistic EMI.
3
Apply the reducing-balance formula
The EMI stays fixed while interest is charged on the outstanding balance, so the interest portion falls each month.
4
Check affordability against total repayment
The dashboard shows total interest and total payable, which is the number that tells you what the loan really costs.

Personal Loan Calculator formula

The exact maths behind every number on this page.

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

P: Principal — the personal loan amount
r: Monthly interest rate (annual rate ÷ 12 ÷ 100)
n: Total monthly instalments (years × 12)

The same reducing-balance formula banks and NBFCs use for retail loans. At 0% interest the EMI becomes P ÷ n.

Personal Loan Calculator calculation example

A ₹5,00,000 personal loan at 13.5% p.a. for 5 years.

1Principal (P)₹5,00,000
2Monthly rate (r)13.5 ÷ 12 ÷ 100 = 0.01125
3Instalments (n)5 × 12 = 60
4EMI₹11,509 (approx.)

You repay about ₹6.91 lakh in total, of which roughly ₹1.91 lakh is interest.

Important assumptions

What this calculation includes, and what it leaves out.

The interest rate stays fixed for the whole tenure, which is the norm for personal loans.
Interest is charged on the reducing monthly balance and every EMI is paid on time.
Processing fees, GST on charges, insurance bundled with the loan and foreclosure charges are not included.
No approval, eligibility or rate is implied — lenders decide those from their own credit policy.

Benefits

Why people use this calculator before signing a loan.

Judge affordability before applying
Multiple loan applications in a short period can affect your credit score.
Compare two offers fairly
Run both rates and tenures and compare total interest side by side.
See the cost of stretching the tenure
A lower EMI over a longer term usually means paying more interest overall.

Financial tips

Practical guidance to act on your result.

A processing fee is usually deducted from the disbursal, so you receive less than the sanctioned amount.
Shortening the tenure by even a year can cut total interest noticeably at double-digit rates.
Check the foreclosure rules before you borrow — some lenders charge a fee for early closure.
Compare the annual percentage rate including fees, not just the interest rate.

Frequently asked questions

Short, direct answers to the questions we hear most.

Guides that explain how to use this calculation in a real decision.

Loans • 6 min read

EMI or prepayment: which saves you more interest?

A practical framework for deciding between a longer tenure, a higher EMI and putting spare cash into prepayment.

Read guide

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Disclaimer

CalPaisa calculators are for general information and planning only. Results are estimates based on the values you enter and standard formulas, and may differ from the figures your bank, employer, or tax authority applies. Nothing here is investment, tax, or legal advice. Please confirm important decisions with a qualified professional. Read our financial disclaimer, learn how CalPaisa works, or tell us about a calculation you think is wrong.

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