Personal Loan EMI Calculator
Borrow smart — without surprises.
Calculate personal loan EMI, total interest, processing fee impact and prepayment savings — the same reducing-balance formula every Indian bank uses.
Loan details
Personal loan insights
The true cost of your personal loan
Beyond the EMI — the full borrowing cost, fee impact, and whether it fits your income.
Total borrowing cost
₹1.20 L
Interest + upfront charges
Effective loan cost
24.1%
Total outflow ÷ loan
Processing fee impact
₹0
Fee + 18% GST
Monthly income needed
₹32,307
At 40% FOIR
EMI as % of income
10.3%
Of monthly take-home
Interest load
24.1%
Total interest ÷ loan
Principal vs Interest
Loan Health Score
Excellent(based on 4 of 5 factors)
A composite of EMI affordability, tenure, total interest ratio and prepayment strategy.
Pending: EMI affordability. Grade will firm up once every input is filled.
EMI affordability
— / 100
Enter your income to score affordability.
Loan duration
95 / 100
4.0-year tenure keeps interest reasonable.
Total interest ratio
100 / 100
Interest is 24% of the principal amount. Negotiating a 0.5% lower rate would drop this by 5.8 K.
Interest efficiency
68 / 100
Rate of 11.00% is above market — negotiate or explore a balance transfer to shave 0.5–1%.
Prepayment plan
60 / 100
Adding ₹2,000/month would save 20.2 K in interest and close the loan 7 months earlier.
Every score uses the RBI-standard reducing-balance formula — see how →
EMI360 Recommendations
Personalized advice from your loan analysis
Ranked by likely impact on your total interest and closing date.
Negotiate a 0.50% lower rate or balance-transfer
Personal loans are unsecured and fixed-rate; foreclosure fees of 2-5% are common in the first year - compare the net saving after charges.
Interest saved
₹5.8 K
Compare scenarios
Current plan vs Optimized plan
You save
₹27.9 K
23.2% less interest · 0.8 yrs earlier
What changed
Extra EMI / month (sample)
Visual insights
Where your money goes
Outstanding balance over time
Cumulative principal vs interest
Prepayment comparison
Amortization schedule
Every EMI, tracked
| Year | EMI Total | Principal | Interest | Balance | |
|---|---|---|---|---|---|
| Year 1 | ₹1,55,073 | ₹1,05,276 | ₹49,797 | ₹3,94,724 | |
| Aug 2026 | ₹12,923 | ₹8,339 | ₹4,583 | ₹4,91,661 | |
| Sept 2026 | ₹12,923 | ₹8,416 | ₹4,507 | ₹4,83,245 | |
| Oct 2026 | ₹12,923 | ₹8,493 | ₹4,430 | ₹4,74,752 | |
| Nov 2026 | ₹12,923 | ₹8,571 | ₹4,352 | ₹4,66,181 | |
| Dec 2026 | ₹12,923 | ₹8,649 | ₹4,273 | ₹4,57,531 | |
| Jan 2027 | ₹12,923 | ₹8,729 | ₹4,194 | ₹4,48,803 | |
| Feb 2027 | ₹12,923 | ₹8,809 | ₹4,114 | ₹4,39,994 | |
| Mar 2027 | ₹12,923 | ₹8,889 | ₹4,033 | ₹4,31,104 | |
| Apr 2027 | ₹12,923 | ₹8,971 | ₹3,952 | ₹4,22,133 | |
| May 2027 | ₹12,923 | ₹9,053 | ₹3,870 | ₹4,13,080 | |
| Jun 2027 | ₹12,923 | ₹9,136 | ₹3,787 | ₹4,03,944 | |
| Jul 2027 | ₹12,923 | ₹9,220 | ₹3,703 | ₹3,94,724 | |
| Year 2 | ₹1,55,073 | ₹1,17,458 | ₹37,615 | ₹2,77,266 | |
| Year 3 | ₹1,55,073 | ₹1,31,050 | ₹24,023 | ₹1,46,215 | |
| Year 4 | ₹1,55,073 | ₹1,46,215 | ₹8,858 | ₹0 |
Smart insights
What your numbers are telling you
Solid plan — at 11% for 4 years, your EMI is ₹12,923.
Affordability check
Is this EMI sustainable?
Calculation assumptions
How these numbers are computed
Transparency by design. These are the rules and simplifications used by the EMI360 calculator.
Standard reducing-balance EMI formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is principal, r is monthly interest rate and n is number of months.
Monthly compounding
Interest is calculated on the outstanding principal at the start of each month.
Constant interest rate
The rate you enter is assumed constant across the tenure. Floating-rate loans may vary with lender resets and RBI policy.
Prepayments reduce tenure
Extra payments (monthly, periodic and one-time) are applied fully to principal — tenure shortens, EMI stays the same.
Step-up EMI applied annually
Every 12 months your total monthly outflow (base EMI + any recurring extra) grows by the step-up %, mirroring salary hikes. The extra amount above the original EMI is applied straight to principal.
Taxes, insurance and lender charges excluded
Processing fees, stamp duty, property taxes, GST, MODT, insurance and legal charges are not included unless entered explicitly.
Estimates for planning only
Actual amortization from your bank may differ slightly because of business-day rounding, disbursement timing and lender-specific conventions.
About the Personal Loan EMI Calculator
A personal loan is unsecured, which means the lender has no collateral to fall back on and prices that risk into the rate. Expect 10.5% at the very best end and 18–24% if your profile is thin. It is the most expensive mainstream borrowing in India after credit-card revolving debt, and the shortest — most run 12 to 60 months.
Because the tenure is short and the rate is high, two things dominate the true cost that a headline EMI never shows: the processing fee, which is charged upfront on the full principal, and the foreclosure penalty, which is charged if you try to exit early. This page models the EMI accurately and then shows you what those two items do to the effective rate.
Worked example: ₹5 L at 14% — headline rate vs effective cost
- Loan amount
- ₹5,00,000
- Rate / tenure
- 14% p.a. / 3 years
- Monthly EMI
- ₹17,089
- Total interest
- ₹1,15,197
- Processing fee (2% + GST)
- ₹11,800
- Cash actually received
- ₹4,88,200
A ₹5 L personal loan at 14% over 3 years carries an EMI of ₹17,089 and ₹1,15,197 of interest. But the lender deducts a 2% processing fee plus GST — ₹11,800 — before disbursal, so you receive ₹4,88,200 while repaying on ₹5,00,000. Your effective annual cost is closer to 15.6% than the 14% on the sanction letter.
Now stretch it to 5 years to soften the EMI. The instalment drops to ₹11,634 — ₹5,455 lighter — but the interest jumps from ₹1,15,197 to ₹1,98,048. You pay ₹82,851 more for the same ₹5 L. On a 14% unsecured loan, tenure is punishing in a way it simply isn't at home-loan rates.
The third number to check before signing is the foreclosure clause. Most Indian lenders charge 2–5% of the outstanding principal if you close a fixed-rate personal loan early, and many impose a 6–12 month lock-in first. On this loan, foreclosing at month 18 with roughly ₹2.8 L outstanding could cost ₹8,400–14,000 on top. That penalty is what makes a personal loan a bad vehicle for money you might repay early.
How it’s calculated
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
The EMI itself uses the same reducing-balance formula as every other loan; only the inputs are harsher. What differs on a personal loan is everything around the EMI. The processing fee is deducted from disbursal, not added to the EMI, so it never appears in any monthly figure — but it is real money you paid to borrow.
To compare two personal loan offers honestly, work out the total outflow: (EMI × months) + processing fee + GST + any mandatory insurance, then compare against the cash you actually receive. A 13.5% loan with a 3% fee is more expensive than a 14% loan with a 1% fee on a two-year tenure. The headline rate is the least reliable comparison point on this product.
Factors that affect your personal loan EMI
Credit score — the dominant input
On unsecured lending this is nearly everything. 780+ can get you 10.5–12%; 700–750 typically 14–16%; below 700 either 18%+ or a decline. A 400 bps swing on ₹5 L over 3 years is roughly ₹35,000.
Employer category and income
Banks maintain internal employer grades. A listed-company or government salary account often unlocks a pre-approved rate a comparable freelancer will never see.
Processing fee and GST
0.5–3% of the principal, deducted upfront, plus 18% GST on the fee. Always negotiate this — it is the most flexible line item in a personal loan.
Tenure
Every extra year at 14%+ is expensive. Take the shortest tenure whose EMI you can service without stress, not the longest one approved.
Foreclosure and part-payment rules
Fixed-rate personal loans commonly carry 2–5% foreclosure charges and a lock-in period. Read this clause before the rate.
Existing obligations (FOIR)
Lenders cap total EMIs around 50–55% of net income. Existing card dues and loans directly reduce both the amount sanctioned and the rate offered.
Next: compare two offers on total cost, not headline rate
Personal loan shopping is where side-by-side comparison pays for itself, because the cheapest-looking rate frequently isn't the cheapest loan once the fee is in. A 13.5% offer with a 3% processing fee loses to a 14.25% offer with a 0.5% fee on a two-year tenure — and no marketing page will tell you that.
The Loan Comparison Calculator puts two full offers next to each other — rate, tenure, fees — and shows the total outflow for each so the winner is unambiguous.
Common mistakes
- Comparing personal loan offers on interest rate while ignoring a processing fee that can differ by 2.5% of principal.
- Taking a 5-year tenure at 14% because the EMI looked comfortable, and paying ₹83,000 extra for it.
- Assuming you can foreclose freely — most fixed-rate personal loans charge 2–5% and impose a lock-in.
- Using a personal loan to clear a credit-card balance and then running the card back up.
- Applying to five lenders in a week; each hard enquiry dents the score that determines your rate.
- Accepting bundled credit-life insurance financed into the loan without checking whether it was optional.
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Understand every number
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 interest rate (annual ÷ 12 ÷ 100) and N is tenure in months. Indian banks and NBFCs use this reducing-balance formula — interest is charged only on the outstanding balance each month.
Why are personal loan rates higher than home or car loans?
Personal loans are unsecured — the lender has no collateral to fall back on. To price that risk, rates run 10–18% p.a. at banks and 14–24% at NBFCs, versus 8–10% for a secured home or car loan.
Processing fee, GST and true cost of borrowing
Most lenders charge 1–3% of the loan as a processing fee, plus 18% GST on that fee. On a ₹5 L loan, a 2% fee + GST adds ₹11,800 upfront — enough to push the effective interest rate 0.5–0.8% higher than the headline number. Always compare effective cost, not just the advertised rate.
Should I prepay a personal loan?
Almost always yes. High interest rates mean early prepayment saves disproportionately — a ₹50,000 prepayment in year one on a ₹5 L / 4-year / 12% loan can save ₹15,000+ in interest. Some lenders charge 2–4% foreclosure fee in the first 12 months; check terms before signing.
What tenure should I choose?
1–3 years is the financially sensible zone. Personal loans compound interest fast — stretching a ₹5 L loan from 3 years to 5 years increases total interest by roughly 70%. Choose the shortest tenure your monthly budget can comfortably absorb.
How much personal loan can I get on my salary?
Lenders cap total EMIs (existing + new) at 40–55% of monthly take-home under FOIR rules. On a ₹75,000 take-home with no other EMIs, most lenders approve ₹8–12 L for a 3–5 year tenure at 11–14%. Credit score of 750+ unlocks the best rates.
Understand the math behind this calculator
Frequently asked
Yes. It uses the RBI-standard reducing-balance formula every bank and NBFC applies. Results match HDFC, SBI, ICICI, Axis, Bajaj Finserv and Tata Capital calculators to the rupee.
Switch to Advanced mode. Add the processing fee, optional loan insurance and any other charges — GST at 18% is auto-computed on the processing fee. Toggle each to Financed (added to your loan) or Upfront (paid at disbursal). Total borrowing cost and effective loan cost update instantly.
Yes. Advanced mode supports extra monthly EMI, quarterly / half-yearly / annual prepayments, and a one-time lump sum. The Prepayment Planner shows interest saved and months shortened.
Salaried borrowers with a 750+ credit score get 10.5–13% p.a. at banks (HDFC, ICICI, Axis, SBI). NBFCs (Bajaj, Tata Capital, IIFL) run 12–18%. Instant / app-based loans can go up to 24% — cheap access, expensive money.
5 years at most banks, extending to 6–7 years at some NBFCs. The RBI does not cap this — lenders do, because unsecured risk rises with tenure. Stick to 3 years or less unless the EMI is genuinely unaffordable.
Yes, more common than on home loans. Typical foreclosure fees: 2–5% of outstanding for the first 12 months, 1–3% afterwards, and often nil after 2–3 years. RBI does not mandate zero prepayment charges on personal loans, so always read the sanction letter.
Yes — the Print / PDF button generates a branded EMI360.in report with your inputs, EMI summary, amortization schedule and prepayment analysis.
No. Every calculation runs in your browser. Nothing is uploaded, stored or shared.
It is total outflow (all EMIs + processing fee + GST + insurance + any other charges) divided by the loan amount, expressed as a percentage. It reflects the true cost of borrowing — not just the headline rate the lender advertises.
FOIR (Fixed Obligations to Income Ratio) is what lenders use — total EMIs capped at ~40% of take-home. Monthly Income Needed = EMI ÷ 0.40, a safe minimum lenders look for before approving your loan.
PAN, Aadhaar, address proof, last 3 months' salary slips (or 2 years' ITR + Form 16 for self-employed), 6 months' bank statement and passport-sized photos. Fully digital lenders may complete KYC via video.
Salaried applicants at MNCs, listed companies and PSUs get the sharpest rates (10.5–12%). Self-employed borrowers typically pay 1–2% more because income is variable — a strong ITR history and 700+ credit score narrow the gap.
750+ gets you the best rates and highest sanctioned amounts. 700–749 gets approval at a slight premium. Below 650 most banks decline; NBFCs may still approve but at 18%+.
App-based loans (KreditBee, MoneyTap, PaySense, IIFL Loans) that disburse in minutes based on digital KYC and bank-statement analysis. Convenient for small tickets (₹10 K–₹2 L) but rates are 18–30% — reserve them for genuine emergencies.