Calculate Your Personal Loan EMI in Seconds - Easy & Free

Calculate Your Personal
Loan EMI

Loan Amount

Rate of interest

P.A

Loan tenure

Years

Monthly EMI	-
Principal amount	-
Total interest	-
Total amount	-

How does a Personal Loan EMI Calculator work?

Personal loan EMI calculators work using a mathematical formula that considers three key factors to estimate your monthly EMI (Equated Monthly Installment):

Loan Amount (P): This is the total sum of money you borrow from the bank or financial institution.
Interest Rate (R): This is the annual percentage rate you are charged for borrowing the money. It's important to note that the interest rate is typically expressed as a monthly rate for the EMI calculation. To convert the annual rate into a monthly rate, we divide it by 12 (number of months in a year).
Loan Tenure (N): This represents the total duration of your loan, typically ranging from 1 to 5 years. The tenure is expressed in terms of months (e.g., 12 months for 1 year).

The Formula:
The EMI calculator employs the following formula to calculate your EMI:
EMI = (P x R x (1 + R)^N) / ((1 + R)^N - 1)
Breaking Down the Formula:

P: Loan Amount
R: Monthly Interest Rate (Annual Rate / 12)
N: Loan Tenure in Months

What the Formula Does:

It factors in the total loan amount (P) you borrow.
It considers the cost of borrowing (monthly interest rate R) throughout the loan tenure. The term (1 + R) raised to the power of N accounts for the compounding effect of interest, where your interest also earns interest over time
It takes into account the total number of monthly payments (N) you'll make to repay the loan.
The entire calculation is then divided by another term ((1 + R)^N - 1) to arrive at your final EMI amount.

By plugging in your loan amount, interest rate, and loan tenure into the formula, the calculator provides an estimated EMI – the fixed monthly payment you'll need to make to repay your personal loan. This allows you to plan your finances effectively and understand your monthly repayment obligation.

frequently asked questions

A Personal Loan EMI calculator is a free online tool that estimates the Equated Monthly Installment (EMI) you'll pay towards your loan. It considers the loan amount, interest rate, and loan tenure to calculate your EMI using a specific formula. (See previous explanation for the formula breakdown).

You'll typically need three pieces of information to use the EMI calculator:

Loan amount: The total amount you want to borrow.
Interest rate: The annual percentage rate (APR) offered by the lender.
Loan tenure: The chosen duration of your loan (e.g., 1 year, 2 years).

Estimate your monthly payment: Gain quick insights into your monthly repayment obligation, helping you plan your budget effectively.
Compare loan options: Experiment with different loan amounts and tenures to see how they impact your EMI, allowing you to compare loan options from different lenders.
Financial planning: Understand the total repayment amount over the loan tenure, facilitating informed financial decisions.

EMI calculators provide estimates. The actual EMI might differ slightly due to factors like processing fees or other charges associated with the loan that aren't considered in the calculation. It's always best to confirm the final EMI with the lender.

Yes, generally, a higher loan amount will result in a higher EMI because you're borrowing more money. However, the loan tenure also plays a role. A longer tenure with the same loan amount might lead to a lower EMI, but you'll end up paying more interest overall.

Yes! The EMI calculator can help you explore how increasing your monthly payment (EMI) can shorten your loan tenure. By entering a higher EMI amount, you can see how it reduces the loan tenure

Many banks, financial institutions, and online financial websites offer free Personal Loan EMI calculators. You can find them on their respective websites.

The ideal loan tenure depends on your financial situation and goals. A shorter tenure means higher EMIs but lower total interest paid. Conversely, a longer tenure leads to lower EMIs but higher total interest. Consider your budget and how long you'd comfortably manage the repayments.

While not mandatory, consulting a financial advisor can be beneficial. They can assess your financial situation, recommend suitable loan options, and guide you through the loan application process.

Personal Loan EMI Calculator