# Personal Loan EMI Calculator

Calculating EMI for personal loans has never been easier! Use the moneyview Personal Loan monthly EMI calculator to find out your personal loan EMI easily.
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Enter the amount you need to borrow, the interest rate, and the tenure and find out your EMI in seconds!

₹87,265

₹23,591

₹5,23,591

|
5K
|
5L
|
10L
|
15L
|
20L
|
25L
|
6%
|
12%
|
18%
|
24%
|
30%
|
36%
###### Tenure
|
3mth
|
12mth
|
24mth
|
36mth
|
48mth
|
60mth

₹87,265

₹23,591

₹5,23,591

• Loan Amount

• Total interest

#### EMI Schedule

Month Opening Balance Interest Principal Closing Balance
Dec '21 ₹ 5,00,000 ₹ 6,667 ₹ 80,598 ₹ 4,19,401
Jan '22 ₹ 4,19,401 ₹ 5,592 ₹ 81,672 ₹ 3,37,728
Feb '22 ₹ 3,37,728 ₹ 4,503 ₹ 82,761 ₹ 2,54,966
Mar '22 ₹ 2,54,966 ₹ 3,400 ₹ 83,865 ₹ 1,71,101
Apr '22 ₹ 1,71,101 ₹ 2,281 ₹ 84,983 ₹ 86,117
May '22 ₹ 86,117 ₹ 1,148 ₹ 86,116 ₹0.00

## moneyview Personal Loan Interest Calculator

Imagine knowing your EMI amount even before availing a loan! This is possible thanks to moneyview’s instant Personal Loan EMI calculator. Find out how much EMI you will have to pay within seconds by using our easy personal loan EMI calculator.

## How to Use Personal Loan EMI Calculators

Calculators can be intimidating to use which is why the moneyview personal loan rate of interest rate calculator is designed to be as simple and easy as possible.

• STEP 1: Enter the loan amount that has been borrowed. You can use the slider to adjust the amount

• STEP 2: Next, add the rate of interest that is charged. This can again be adjusted by using the slider

• STEP 3: 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 and interest to be paid.

The moneyview Personal Loan Installment Calculator comes with a number of features such as quick and easy EMI calculation which 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.

## Formula to Calculate Personal Loan EMI

The formula for calculating EMI is as follows:

E =  (P x R x (1+R)^N) / [(1+R)^N-1]

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

Let Us Understand This With An Example -

• Rs. 5,00,000 is the amount borrowed (P)

• 10.5% is the annual rate of interest imposed

• 60 months is the tenure (n)

Then 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)^60-1] = 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.

Amortization table or EMI schedule is a table that shows the schedule and impact of your EMI payments on your principal and interest. Though the amount you pay as EMI remains largely the same throughout the tenure, your principal and interest amount will reduce over time. This change is illustrated in the form of an amortization table.

Given below is the table for the above example -

 Year Principal Interest Total Payment Balance 2021 ₹77,642 ₹55,822 ₹1,33,464 ₹4,22,358 2022 ₹87,488 ₹45,976 ₹1,33,464 ₹3,34,870 2023 ₹98,586 ₹34,878 ₹1,33,464 ₹2,36,284 2024 ₹1,11,089 ₹22,375 ₹1,33,464 ₹1,25,195 2025 ₹1,25,178 ₹8,286 ₹1,33,464 ₹0

If you are new to personal EMI calculation and are unsure of how the process works, here’s an example to help you out -

Nethra is a careful spender and always plans her finances. She decides to repaint her house and wants to invest Rs. 3 lakh. She plans to take a personal loan to finance this and is able to set aside a monthly budget of Rs. 15,000 to spend on EMIs.

Before applying for the loan, she does preliminary research and finds out that the potential interest rate charged could be 2% per month and wants a repayment term of 36 months.

After using the moneyview Rs. 3 Lakhs Personal Loan EMI calculator, her potential EMI is - Rs. 11, 770 which she can easily afford. The interest amount adds up to Rs. 1, 23, 715.

Her amortization schedule or EMI schedule is as follows -

 Month Opening Balance Interest Principal Closing Balance Jan '23 ₹ 3,00,000 ₹ 6000 ₹ 5,770 ₹ 2,94,230 Feb '23 ₹ 2,94,230 ₹ 5,885 ₹ 5,885 ₹ 2,88,344 Mar '23 ₹ 2,88,344 ₹ 5,767 ₹ 6,003 ₹ 2,82,341 Apr '23 ₹ 2,82,341 ₹ 5,647 ₹ 6,123 ₹ 2,76,218 May '23 ₹ 2,76,218 ₹ 5,524 ₹ 6,245 ₹ 2,69,972 Jun '23 ₹ 2,69,972 ₹ 5,399 ₹ 6,370 ₹ 2,63,602 Jul '23 ₹ 2,63,602 ₹ 5,272 ₹ 6,497 ₹ 2,57,104 Aug '23 ₹ 2,57,104 ₹ 5,142 ₹ 6,627 ₹ 2,50,476 Sep '23 ₹ 2,50,476 ₹ 5,010 ₹ 6,760 ₹ 2,43,715 Oct '23 ₹ 2,43,715 ₹ 4,874 ₹ 6,895 ₹ 2,36,820 Nov '23 ₹ 2,36,820 ₹ 4,736 ₹ 7,033 ₹ 2,29,786 Dec '23 ₹ 2,29,786 ₹ 4,596 ₹ 7,174 ₹ 2,22,612 Jan '24 ₹ 2,22,612 ₹ 4,452 ₹ 7,317 ₹ 2,15,294 Feb '24 ₹ 2,15,294 ₹ 4,306 ₹ 7,464 ₹ 2,07,830 Mar '24 ₹ 2,07,830 ₹ 4,157 ₹ 7,613 ₹ 2,00,216 Apr '24 ₹ 2,00,216 ₹ 4,004 ₹ 7,765 ₹ 1,92,451 May '24 ₹ 1,92,451 ₹ 3,849 ₹ 7,920 ₹ 1,84,530 Jun '24 ₹ 1,84,530 ₹ 3,691 ₹ 8,079 ₹ 1,76,450 Jul '24 ₹ 1,76,450 ₹ 3,529 ₹ 8,240 ₹ 1,68,209 Aug '24 ₹ 1,68,209 ₹ 3,364 ₹ 8,405 ₹ 1,59,804 Sep '24 ₹ 1,59,804 ₹ 3,196 ₹ 8,573 ₹ 1,51,230 Oct '24 ₹ 1,51,230 ₹ 3,025 ₹ 8,745 ₹ 1,42,484 Nov '24 ₹ 1,42,484 ₹ 2,850 ₹ 8,920 ₹ 1,33,564 Dec '24 ₹ 1,33,564 ₹ 2,671 ₹ 9,098 ₹ 1,24,465 Jan '25 ₹ 1,24,465 ₹ 2,489 ₹ 9,280 ₹ 1,15,185 Feb '25 ₹ 1,15,185 ₹ 2,304 ₹ 9,466 ₹ 1,05,718 Mar '25 ₹ 1,05,718 ₹ 2,114 ₹ 9,655 ₹ 96,063 Apr '25 ₹ 96,063 ₹ 1,921 ₹ 9,848 ₹ 86,214 May '25 ₹ 86,214 ₹ 1,724 ₹ 10,045 ₹ 76,168 Jun '25 ₹ 76,168 ₹ 1,523 ₹ 10,246 ₹ 65,922 Jul '25 ₹ 65,922 ₹ 1,318 ₹ 10,451 ₹ 55,470 Aug '25 ₹ 55,470 ₹ 1,109 ₹ 10,660 ₹ 44,810 Sep '25 ₹ 44,810 ₹ 896 ₹ 10,873 ₹ 33,936 Oct '25 ₹ 33,936 ₹ 679 ₹ 11,091 ₹ 22,844 Nov '25 ₹ 22,844 ₹ 457 ₹ 11,313 ₹ 11,531 Dec '25 ₹ 11,531 ₹ 231 ₹ 11,539 ₹0.00

In this way, Nethra has efficiently used an EMI calculator to plan her spending so that her finances are not negatively affected.

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.

Here’s a quick guide to the differences between them -

 Flat Balance Interest Calculation Reducing Balance Interest Calculation Based on the complete loan amount availed Interest calculated based only on the outstanding principal amount each month Dependent on the complete repayment tenure chosen Calculated on a monthly basis Interest stays constant throughout loan tenure Interest calculation depends on outstanding loan amount Overall EMI amount tends to be marginally higher Overall EMI amount tends to be marginally lower Formula used for calculation is - Interest = (Principal * loan tenure * interest rate per annum)/ Total number of installments Formula used for calculation is - Interest = Outstanding Loan Amount * Applicable Interest for Each Installment

The reducing balance interest method is generally used by banks to calculate the EMI and is the basis for the moneyview Personal Loan EMI calculator as well.

Let us understand both types of interest calculation with a simple example -

Abhishek has taken a loan of Rs. 50,000. The interest rate imposed is 18% per annum with a repayment term of 6 months.

If he uses a flat balance method of interest calculation, his EMI will be - Rs. 9,083 and his EMI schedule will be -

 Flat Rate Calculation EMI Interest Principal Balance Due 9083 750.00 8333.33 41666.67 9083 750.00 8333.33 33333.33 9083 750.00 8333.33 25000.00 9083 750.00 8333.33 16666.67 9083 750.00 8333.33 8333.33 9083 750.00 8333.33 0.00

Now if he uses the reducing balance method of calculation, his EMI will be - Rs. 8,776 and his EMI schedule will be -

 Reduced Balance Calculation EMI Interest Principal Balance Due 8776 750.00 8026.26 41973.74 8776 629.61 8146.65 33827.08 8776 507.41 8268.85 25558.23 8776 383.37 8392.89 17165.34 8776 257.48 8518.78 8646.56 8776 129.70 8646.56 0.00

As illustrated by the tables above, his EMI will be lower if he uses the reducing balance method of calculation. The good news is that most lenders opt for this method of calculation.

Having a low personal loan EMI is every borrower’s dream and this is possible. Here are a few factors that have an impact on your personal loan EMI -

• ### 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 your credit score is high i.e. above 700 then it becomes easy for you to procure a loan at lower rates of interest and at a repayment tenure that is to your advantage. Lower the rate of interest then lower is the EMI payment to be made

• ### Loan Amount

EMI to be paid is directly proportional to the amount that is borrowed. Therefore, this should be factored in before availing a loan. If the loan amount is too high, it may be hard for you to repay your loan.

• ### Repayment Tenure

The term taken to repay the loan amount is inversely proportional to the EMI amount i.e. a lengthy tenure implies that the EMI amount to be paid each month is lower and vice versa.

However, taking a longer repayment term can also be a disadvantage as the overall interest paid increases.

• ### Existing Debt

Existing debt is not an issue as long as you don’t have too many loans running at the same time. Not only will it be hard for you to repay your EMI, lenders may also perceive you to be credit-hungry and refuse to lend to you.

• ### Type of Interest Rate

Not to be confused with interest rate calculation, the type of interest chosen can have an impact on your EMI. If a floating interest rate is chosen then your interest rate may vary based on the RBI’s directives. On the other hand, a fixed rate will ensure the same interest rate throughout the repayment term.

• ### Age and Income

The older you are, the harder it is to avail a loan and this is especially the case if you are closer to retirement age.

If you do not have a steady income then lenders will be wary of lending as they are unsure of your repayment ability. This is why even if you get a loan, the interest rate will be higher.

Using a personal loan prepayment calculator comes with a number of advantages. Some of these are -

• Using a personal loan installment calculator can help you plan out your finances so you will have an idea of how much EMI to pay

• Manual calculations can result in errors which is why using an automated calculator such as the moneyview Personal Loan Eligibility Calculator can help you find out exactly how much you will owe

• You can also save on time and effort by using a personal loan EMI calculator online instead of manually trying to find out the EMI amount by yourself.

• You can access the EMI calculator online easily from anywhere at any time.

• Lastly, knowing how much EMi to pay will not only help you plan your finances, you can also ensure that there are no missed or delayed payments which can impact your credit score.

## Personal Loan EMI Related FAQs

The amount of EMI you have to pay every month depends on the principal loan amount, repayment term, and the rate of interest charged. Mathematically,

EMI = [P x R x (1+R)^N]/[(1+R)^N-1],

where

P = Principal Loan Amount

R = Interest Rate

N = Number of monthly installments

The EMI is usually fixed for the duration of the loan and is repaid on a monthly basis. You can easily calculate your EMI in seconds using our personal loan EMI calculator.

When borrowers stop paying the EMI, the banks will term their loan accounts as non-paying assets (NPA) after a certain period.

Additionally, they will report the same to the credit bureaus. Missing EMI payments for a long duration will negatively impact your credit score and make it very difficult to avail loans in the future.

A personal loan EMI calculator, apart from being very easy to use, comes with several other benefits, such as -

1. You can find out the exact amount of EMI you have to pay in just a few seconds
2. You can use it to compare loans from different lenders and choose the best option for you
3. It simplifies loan planning by providing you with the entire amortization schedule
4. The values are accurate and consistent without any errors
5. Saves you time

The reducing balance method calculates interest based on the outstanding principal loan amount. Customers benefit from this method because they have to pay less interest as the loan tenure progresses because interest is calculated based on the outstanding principal loan amount. The depreciation rate percentage is applied to the asset's decreasing balance.

Here is how you can calculate EMI in the Reducing Balance Method

EMI = [P x Ix (1+I) ^T]/ [((1+I) ^T)-1)]

where

P = principal amount

I = rate of interest / (100×12)

T =  number of years x 12

Here are simple ways to reduce your EMI:

1. When you purchase an item, pay a higher amount of down payment so you can reduce the monthly installments
2. Opt for a longer repayment tenure
3. Negotiate a lower rate of interest with your bank
4. Make part prepayments (if accepted) to reduce loan burden

Customers must note that there are generally two ways to change/reduce the amount paid towards EMI. Either pre-payment must be made on the loan which will reduce the amount to be repaid or the borrower must negotiate with the lender for an extension of the repayment tenure or to reduce the interest imposed.

The type of interest rate you choose will have an impact on your EMI. Here are some of the features of these interest rates -

1. Floating rate of interest changes with market fluctuations and the fixed one stays the same throughout your tenure.
2. Floating rates tend to be lower.
3. If you are sure rates will rise, choose the fixed rates. If unsure, choosing the floating rates will be better.

Ans: Your EMI will depend on three factors -

• The amount being borrowed
• Rate of interest
• Repayment term

In this case, let us assume that your rate of interest is 16% per annum with a repayment term of 8 months. The easiest way to find out your EMI is to use the Money View Personal Loan EMI Calculator.

Using this calculator, the EMI for 2 lakhs personal loan is Rs. 26,523 with the interest amount coming up to Rs. 12,185.

The EMI on your Rs.10 Lakh personal loan will be based on your tenure and the rate of interest.

For example, if you have taken a Rs. 10 lakh loan with an interest rate of 16% and tenure of 48 months, your EMI amount will be Rs. 28,340 per month.

A loan is repaid in the form of monthly payments known as EMI or Equated Monthly Installments. This amount comprises the principal and interest components and will depend on the amount borrowed, interest rate imposed, as well as repayment term.

EMI can be calculated in two ways -

1. You can either use the formula given above
2. You can use the Money View Personal Loan EMI Calculator online

The easiest way to calculate the interest component of an EMI is to use an easy calculator such as the Money View Personal Loan EMI Calculator. All you need to do is input the required information, and you’ll find out the interest amount that you will have to pay.

For example, Vijay wants to avail a personal loan of Rs. 40,000. The interest rate charged will be around 17% per annum (determined by the lender) and the repayment term is 6 months.

He inputs these details into the Money View rate of interest calculator. Based on the calculations, his monthly EMI will be Rs. 7,007 and the interest component comes up to Rs. 2,007.

In order to calculate EMI in Excel, you will need to use the following formula -

=PMT(RATE,NPER,PV,FV,TYPE)

Where

1. RATE stands for rate of interest applicable on the loan
2. NPER is the total number of monthly installments/ loan tenure
3. PV represents present value/ loan amount/ principal amount
4. FV is future value or cash balance once last payment has been made. This can be omitted and the value will be counted as zero (0).

Type is zero (numerical 0) or 1 – this indicates when the payment is due. If payment is due at the end of the month, the type will be equal to zero. If the payment is due at the start of the month, then the type will be set as 1.

This way, using the above formula, you can easily use Excel to calculate your EMI.