Personal Loan EMI Calculator

How does this Personal Loan EMI Calculator Works?

To use the Personal Loan EMI Calculator, enter the following details:

Loan Amount (INR): The total amount of the personal loan you are applying for. Minimum ₹1,000.

Rate of Interest (Annual): The interest rate charged annually on your loan amount.

Loan Tenure (Years): The number of years you plan to repay the loan.

The calculator uses these values and the EMI formula(which is given below) to calculate your monthly EMI, total interest, and total repayment amount.

Personal Loan EMI Calculation Formula

The EMI for a personal loan is calculated using the following formula:

EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)

Where:

• P = Principal loan amount (The total amount borrowed).


• r = Monthly interest rate (Annual interest rate divided by 12 and by 100).


• n = Loan tenure in months (Loan tenure in years multiplied by 12).

The total interest paid over the loan tenure is calculated as:

Total Interest = Total Payments - Principal Loan Amount

Personal Loan EMI Calculation Example

Here’s an example of how the EMI for a personal loan is calculated:

Loan Amount: ₹300,000
Interest Rate: 12% per annum
Loan Tenure: 3 years (36 months)

Plugging the values into the formula:

EMI = 300,000 × 0.01 × (1 + 0.01)^36 / ((1 + 0.01)^36 - 1) = ₹10,473.12

The monthly EMI will be ₹10,473.12. Over the loan tenure, the total interest paid is:

Total Interest = ₹10,473.12 × 36 - ₹300,000 = ₹37,018.32

Total Loan Amount = ₹300,000 (Principal) + ₹37,018.32 (Interest) = ₹337,018.32.