Personal Loan EMI Calculator
MoneyView has come up with an easytouse EMI calculator. With our
Personal Loan EMI Calculator, you can easily find out your EMI as well
as a breakdown of the installments based on different interest rate
slabs, repayment tenure, and the amount borrowed.
How Does Our Personal Loan EMI Calculator Work?
All personal loans need to be repaid with EMIs which need to be made
throughout the entire loan repayment tenure. This is a fixed or
sometimes a variable amount that will have to be made by the borrower to
the lender. The EMI is decided based on the amount borrowed as well as
the interest rate charged. The applicant's credit score has a
significant impact on both the repayment tenure as well as rate of
interest imposed.
Our personal loan interest rate calculator is tailored to be extremely
user friendly. Follow the steps below to calculate your monthly EMI
online and plan your finances effectively.

Enter the loan amount that has been borrowed. You can use the slider
to adjust the amount

Next, add the rate of interest that is charged. This can again be
adjusted by using the slider

Lastly, enter the repayment tenure that you have chosen in either
months or years
And voila, the EMI amount to be paid will be displayed along with the
EMI repayment schedule.
The MoneyView Personal Loan EMI Calculator comes with a number of
features such as quick and easy EMI calculation and therefore, reduces
the chances of error. Using this calculator, individuals can also check
the EMI they may have to pay before availing a personal loan and in turn
manage their finances efficiently.
Personal Loan EMI Calculation Formula
The formula for calculating EMI is as follows:
P x R x (1+R)^N / [(1+R)^N1]
Where P stands for the principal amount that is borrowed
R represents the rate of interest imposed
N is the tenure in number of months
For example, if Rs. 5,00,000 is the amount borrowed (P), 10.5% is the
rate of interest imposed (R), and the 60 months is the tenure (n), the
EMI to be paid using the above formula will be:
5,00,000 x 0.00875 x (1+0.00875)^60 / [(1+0.00875)^601] = Rs. 10,747
The rate of interest (R) is calculated monthly i.e. it is calculated as
(Annual Rate of interest/12/100) in this case (10.5/12/100 = 0.00875)
The above formula can be used to calculate EMIs for all types of loans
and not just personal loans, unless mentioned otherwise.
Loan Payment Details
Difference Between Flat Balance and Reducing Balance Interest
Calculation
One of the most important determinants of the EMI is the loan principal
or the amount that has been borrowed. EMI calculation is made in two
ways i.e. flat balance method or reducing balance interest rate method.
In case of the flat balance method, the interest amount that is payable
is based on the entire loan amount for the entire duration of the loan
repayment tenure and therefore, the EMI amount does not change
throughout the loan repayment tenure.
If EMI calculation is made using the reducing balance interest rate then
the interest is calculated on the principal amount that is outstanding
for each time instead of the full amount that is borrowed. Therefore,
the principal amount decreases with each successive payment as the
tenure progresses. This is generally the method used by banks to
calculate the EMI and is the basis for the MoneyView Personal Loan EMI
calculator as well.
Factors that Affect Personal Loan EMI
There are a number of factors that affect the EMI payments for a
Personal Loan. Some of these include:

Credit Score and Rate of Interest
Credit score is a three digit numerical summary of an individual's
credit report. A credit report includes details about the loans that
have been availed previously, repayment of the same, and other financial
habits. If the credit score of an individual is high i.e. above 700 then
it becomes easy for him/her to procure a loan at lower rates of interest
and at a repayment tenure that is to their advantage. Lower the rate of
interest then lower is the EMI payment to be made
EMI to be paid is directly proportional to the amount that is borrowed.
Therefore, this should be factored in prior to availing a loan
The term taken to repay the loan amount is inversely proportional to the
EMI i.e. a lengthy tenure implies that the EMI amount to be paid each
month is lower and vice versa