Loans & EMI

    Personal Loan Calculator

    Estimate personal-loan EMI, total interest and payout with a year-wise amortization schedule. Compare tenures instantly.

    Inputs
    %
    years
    Result
    Monthly Personal Loan EMI
    ₹16,607
    • Principal₹5,00,000
    • Total Interest₹97,858
    • Total Payment₹5,97,858
    • Tenure36 months
    • Interest Rate12%

    You will pay ₹16,607 every month for 36 months. Total interest cost: ₹97,858 (19.57% of principal).

    Principal vs Interest
    Step-by-step calculation
    1. Monthly rate r = 12 / 12 / 100 = 0.01
    2. Number of months N = 3 × 12 = 36
    3. EMI = P·r·(1+r)^N / ((1+r)^N − 1) = ₹16,607
    4. Total payment = EMI × N = ₹5,97,858
    5. Total interest = Total − Principal = ₹97,858
    Detailed Breakdown
    YearPrincipal PaidInterest PaidBalance
    1₹1,47,208₹52,078₹3,52,792
    2₹1,65,877₹33,408₹1,86,915
    3₹1,86,915₹12,371₹0
    How this is calculated
    EMI = P × r × (1 + r)ᴺ / ((1 + r)ᴺ − 1)
    • P = principal, r = monthly interest rate, N = total months.
    • Uses the reducing-balance method used by all Indian banks and NBFCs.
    • Total interest = EMI × N − P.
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Consolidating expensive credit-card debt (36% APR) into a cheaper PL (~14%).
    • Funding a one-time expense with a clear 24–36 month repayment window.
    • Comparing offers across banks/NBFCs before accepting a pre-approved PL.
    Overview

    Understanding the Personal Loan

    A personal loan is an unsecured, end-use-agnostic credit product priced between 10.5% and 24% depending on your CIBIL score, income and employer segment. Because there is no collateral, banks price in the credit risk — a 750+ CIBIL score can bring rates to ~11%, while sub-700 borrowers pay 18%+. This calculator returns the EMI, total interest and amortization schedule for any personal-loan amount and tenure.

    Personal loans are best used for genuine short-tenure needs — medical emergencies, weddings, home renovation, credit-card consolidation. Because rates are far above home-loan or gold-loan rates, keep tenure short (24–36 months preferred, 60 months max) and avoid rolling from one PL to another. Use this calculator to compare offers across banks and NBFCs before signing.

    Note: RBI has capped foreclosure charges at zero for floating-rate PLs to individual borrowers from Jan 2024. Fixed-rate PLs may carry 2–4% prepayment fee — factor that into total cost.

    Worked examples

    Real-world scenarios, step-by-step

    ₹8 L credit-card consolidation @ 13.5% for 4 years

    Combining three cards into a single personal loan to cut effective rate from 36% to 13.5%.

    • EMI ≈ ₹21,478/month | Total ≈ ₹10.31 L | Interest ≈ ₹2.31 L
    • Cards at 36% for same tenure would cost ~₹5.6 L in interest.
    Saves ~₹3.3 lakh in interest.
    Rates & reference

    Indicative personal-loan rates by CIBIL band (2025)

    CIBIL bandBank rateNBFC rateNotes
    800+10.5–11.5%12–14%Best rates, minimal docs
    750–79911.5–13%13–16%Pre-approved offers common
    700–74913–16%15–20%Employer category matters
    <70016–24%18–28%Consider secured options first
    Pro tips

    Common mistakes to avoid

    Chasing lowest advertised rate without checking processing fee (0.5–3%).

    Taking a 60-month PL for a 24-month need — extra interest is huge.

    Missing EMIs on a PL — hits CIBIL harder than any other product.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Ask for the amortization schedule and APR (all-inclusive), not just headline rate.

    • Prepay in year 1 — most banks now allow zero-charge foreclosure on floating PLs.

    Frequently asked questions

    How is a personal loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    Can prepayment reduce my interest?+

    Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.

    Keep exploring

    People also ask

    How is a personal loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Personal Loan Calculator
    How is this loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via EMI Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via EMI Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via Personal Loan Calculator
    How is a home loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Home Loan Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). Personal Loan Calculator — Taxpex. Retrieved from https://taxpex.com/tools/loans-emi/personal-loan-calculator
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