Personal Loan EMI Calculator
Calculate monthly EMI and total cost of a personal loan — with actual cost comparison and tips to reduce interest burden.
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How to use this calculator
- 1
Enter the loan amount — personal loans in India typically range from ₹50,000 to ₹50 lakh.
- 2
Enter the annual interest rate — bank personal loans range from 10–20%; NBFC and app-based loans can be 18–36%.
- 3
Set the tenure in months — personal loans in India are typically 12–60 months.
- 4
Enter the processing fee percentage — banks charge 1–3% of the loan amount upfront.
Frequently asked questions
Which formula gives the EMI?
This tool uses EMI = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the annual rate ÷ 12 and n is the tenure in months. It is a reducing-balance EMI, paid at the end of each month. ₹5,00,000 at 14% for 48 months gives ₹13,663 (shown rounded to the whole rupee).
How is the processing fee treated?
It is the loan amount × the fee percentage, shown separately and added to the total cost of the loan. It does not change the EMI. For the defaults, 2% of ₹5,00,000 is ₹10,000. Taxes charged on the fee, if any, are not added.
What is the “Effective annual rate (fee-adjusted)”?
It is the monthly rate at which all the EMIs discount to the amount you receive after the fee is deducted (loan amount minus processing fee), multiplied by 12. At the defaults it is 15.11% a year compared with the entered 14%. With no fee it equals the entered rate.
Why does the effective rate change with tenure when the fee is the same?
A one-off fee is spread across the months of the loan. For ₹5,00,000 at 14% and a 2% fee, the figure is 16.06% over 24 months, 15.43% over 36, 15.11% over 48 and 14.91% over 60.
How are 0% and zero values handled?
A rate of 0 is honoured and gives an EMI equal to the loan divided by the months, so ₹1,20,000 over 12 months is ₹10,000 with no interest. A loan amount or tenure of 0 gives n/a. An effective rate is only reported when the fee is below the loan amount.
Is the tenure in months?
Yes, enter it in months: 4 years is 48. The EMI count equals the number you enter, and fractional months are not rounded.
What is left out of the total cost?
Prepayment or foreclosure charges, late fees, insurance sold with the loan, taxes on fees and any change of rate are not included. The tool assumes the rate is fixed and every instalment is paid on time.
Are the default rate and fee market figures?
No. The 14% rate and 2% fee are only starting values in the boxes. Real rates, fees and rules vary by lender and change over time, so the sanction letter or loan agreement governs.
Personal loan EMI: the instalment, the fee and the cost beyond the stated rate
Reducing-balance EMI and a separate fee line
The tool computes an equal monthly instalment on a reducing balance, using a monthly rate of the annual rate divided by 12 and a tenure counted in months. A processing fee, entered as a percentage of the loan, is calculated on the side and added to the total cost without altering the EMI. Under the defaults of ₹5,00,000, 14% and 48 months, the EMI is ₹13,663, interest is ₹1,55,835, the fee is ₹10,000 and the total cost is ₹6,65,835.
Worked example: a smaller loan with a 1% fee
For ₹3,00,000 at 11% over 24 months with a 1% fee, the EMI is ₹13,982 and interest is ₹35,576. The fee is ₹3,000, giving a total cost of ₹3,38,576, and the fee-adjusted effective annual rate is 12.01% against the 11% entered. The fee-adjusted figure treats the fee as deducted from the amount received, so the loan costs more per rupee actually received than the headline rate suggests.
Tenure against EMI and fee-adjusted rate
Each row of the table is the default ₹5,00,000 loan at 14% with a 2% fee, and only the tenure differs. The EMI falls with a longer tenure while interest rises, and the same ₹10,000 fee weighs less heavily on the effective rate.
| Tenure | EMI | Total interest | Total cost of loan | Effective annual rate |
|---|---|---|---|---|
| 24 months | ₹24,006 | ₹76,155 | ₹5,86,155 | 16.06% |
| 36 months | ₹17,089 | ₹1,15,197 | ₹6,25,197 | 15.43% |
| 48 months | ₹13,663 | ₹1,55,835 | ₹6,65,835 | 15.11% |
| 60 months | ₹11,634 | ₹1,98,048 | ₹7,08,048 | 14.91% |
Zero-rate and zero-fee cases
A 0% rate with no fee turns the loan into equal principal instalments: ₹1,20,000 over 12 months is ₹10,000 a month. With the fee set to 0, the default loan returns exactly the 14% entered, so the gap seen above is entirely the fee. Note that the effective rate is a monthly-compounded rate multiplied by 12, which is how the tool defines it, and a lender may quote the figure on another basis. A zero amount or tenure shows n/a instead of ₹0.
What the estimate does not cover
Prepayment charges, late fees, bundled insurance, taxes on the fee and rate changes are all outside the model. Real rates, fees and rules change, and the lender’s sanction terms decide what you will actually pay, so use the numbers for comparison only. Treat each row in the table as a statement about arithmetic and not as a typical or suggested tenure.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →