Personal Loan EMI Calculator
Calculate your personal loan EMI, total interest and full amortization schedule instantly with this online calculator for India.
How is Personal Loan EMI Calculated?
A personal loan EMI is calculated the same way as any reducing-balance loan: a fixed monthly payment that covers interest on the outstanding balance plus a portion of the principal, structured so the loan is fully repaid by the end of its tenure.
EMI = [P × R × (1 + R)N] ÷ [(1 + R)N − 1]
- P — Principal loan amount
- R — Monthly interest rate (annual interest rate ÷ 12 ÷ 100)
- N — Loan tenure in months
Personal loans typically carry higher interest rates and shorter tenures than home loans since they're unsecured. Use the calculator above to see your exact EMI, the full repayment schedule, and how prepayments can reduce your total interest outgo.
Frequently Asked Questions
Why is personal loan interest higher than a home loan?
Personal loans are unsecured (no collateral), so lenders charge a higher interest rate to offset the additional risk compared to a secured loan like a home loan.
Can I prepay a personal loan?
Most lenders allow prepayment after a lock-in period, sometimes with a prepayment charge. Every prepayment reduces your outstanding principal, lowering the interest charged in every subsequent month.