What Is the Personal Loan EMI Calculator?
EMI stands for Equated Monthly Installment — the fixed amount you pay your lender each month until a loan is fully repaid. Each EMI covers both interest and a portion of the principal. This calculator instantly works out your monthly EMI, the total interest you will pay, and the total amount repaid over the loan term, helping you compare offers and plan your budget before you borrow.
How to Use It
Enter three values: the loan amount (principal), the annual interest rate as a percentage, and the loan tenure in months. The calculator converts the annual rate into a monthly rate, applies the standard amortization formula, and returns your EMI along with a breakdown of interest versus principal.
The Formula Explained
The EMI formula is $$\text{EMI} = P \cdot \frac{r\,(1+r)^{n}}{(1+r)^{n}-1}$$ where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments. If the interest rate is zero, the EMI is simply the principal divided by the number of months: $$\text{EMI} = \frac{\text{Loan Amount}}{\text{Tenure (months)}}$$
Worked Example
Suppose you borrow 100,000 at 12% annual interest for 24 months. The monthly rate \(r = 12 \div 12 \div 100 = 0.01\). Then \((1.01)^{24} \approx 1.26973\). $$\text{EMI} = 100{,}000 \times 0.01 \times \frac{1.26973}{1.26973 - 1} \approx 4{,}707.35 \text{ per month}$$ Over 24 months you repay about 112,976.36, of which roughly 12,976.36 is interest.
FAQ
Does a longer tenure reduce my EMI? Yes, spreading payments over more months lowers each EMI, but you pay more total interest.
Is the interest rate fixed? This calculator assumes a fixed rate for the full term. Variable-rate loans will differ as the rate changes.
Are processing fees included? No. The result reflects only principal and interest; add any one-time fees separately when comparing loans.
