An online personal loan EMI calculator helps in calculating your EMIs in a hassle-free manner. This online device with its simple and well-designed algorithms allows you to know the exact calculations of your monthly installments, interest outgo and the total amount payable. This tool comes with a lot of features like accuracy, time-saver, easy comparisons, adjustable, etc. The tool starts functioning the moment you feed-loan amount, tenure and interest rate into the same. And, gives the correct values in the least time frame. Thus, it helps in taking a calculative decision as far as availing a personal loan is concerned.   

What is a Personal Loan EMI Calculator

An online tool that can be used to calculate EMIs, Interest Outgo and Total Amount Payable towards a personal loan. It works on a well-designed algorithm wherein it simplifies the values and shows the results quickly. The device starts to function the moment you feed:

Loan Amount


Interest Rate

Yes, soon after feeding the credentials above, the device churns out the accurate values, making your personal loan a hassle-free experience. 

Components of EMI Calculator

Principal Paid:This is the portion of your monthly payment that is applied towards the loan principal. And, this portion keeps on increasing each month as the loan matures. 

Interest Paid:This is the interest portion of your monthly payment that is applied towards interest. This portion will keep on decreasing every month as the loan matures.

Total Payment:It is a total sum of principal and interest paid.

Outstanding Loan Balance:The remaining loan balance at any given period corresponds to the principal amount that is owed to the lender at the end of that period. 

What EMI Stands for

Equated Monthly Installment or commonly known as EMI is the amount that you pay every month to the lender to pay off your loan. 

EMI Consist of Interest on the loan along with the principal amount.

However, the total sum of the principal amount and interest is further divided by the tenure of the loan.

How Personal Loan EMI Calculator Works

An online EMI calculator for personal loan works on a simple phenomenon and lets you know the values faster. The smart tool basically works on two basic formulae. 

The first one is used to calculate the monthly interest rate while on the other hand the second one is used to calculate the monthly installments. 

Let’s get into the detail and understand the functioning of both.

How to Calculate Monthly Interest

Whenever you apply for a personal loan online, it would not be wrong to say that interest rate is the first and foremost thing that grabs the attention of all. So, before you start using the EMI calculator, you need to convert your annual interest rate into the monthly interest rate. And, in order to convert that, below formula is used:

r=annual interest rate/12

For example- If a bank offers you 18% of interest rate annually, your monthly interest rate will be:


Thus, 1.5% will be your monthly interest rate for personal loan

How to Calculate EMI

Calculating the EMI is a bit difficult as compared to calculating the monthly interest rate. To calculate your EMI, you need to use the below formula:

E = P . r . (1+r)^n/((1+r)^n – 1)

In this:


P=Principal Loan Amount

r=Monthly Interest Rate

n=Monthly Loan Tenure 

For example- If you have borrowed a sum of Rs. 10,00,000 from a bank at an annual interest rate of 10.5% (10.5%/12=0.875 monthly) for 10 years ( 10×12=120 months), your EMI will be:

Rs.10,00,000 *0.00875 * (1 + 0.875)120 / ((1 + 0.875)120 – 1) = Rs. 13,493

Now, you will pay Rs. 13, 493 for 120 months to repay your personal loan amount. Thus, your total payable=13, 493×120=16,19,220.

Features of Personal Loan EMI Calculator

Accuracy: This device is so accurate that it will perform the calculations in a few seconds. 

Time Saving: It does complex calculations in just a few seconds thus saves a lot of time of the user. 

Easy Comparisons: EMI calculator allows you to have easy comparisons. Yes, you can compare different lenders easily, and know different EMIs offered by them.

Adjustable: An EMI calculator can be used endlessly which means you can use it many times. Also, you can re-adjust the settings, and can get the results endlessly. 

Tells You More Than Just the EMI: The calculator helps you gain more information about your loan. Yes, apart from calculating your monthly EMIs, the device showcases interesting graphic representations, pie charts ,and tables. 

Factors Affecting Personal Loan EMI

Loan Amount: The higher loan amount you demand, the higher EMIs you need to pay. However, the maximum loan amount is decided by the lender based on your personal loan eligibility factors. 

Interest Rate: The rate of interest is directly linked to the EMIs. If the personal loan interest rates are higher, your EMI amount is also higher. Well, your interest rate is determined by several factors like income, cibil score, credit history, repayment capacity, etc. 

Loan Tenure: The personal loan tenure that you choose is inversely proportional to the EMI. The shorter the tenure, the higher the EMI amount. A personal loan tenure ranges between 1 year to 5 years. 

Ways to Reduce Personal Loan EMI

  • Go for a Low Interest Rate: The lower interest rate you have, the better as it keeps your EMI pocket-friendly. Both of them are directly proportional so if your rates are lower, your monthly installments are also reduced.  
  • Opt a Suitable Tenure: If you opt for a longer tenure, EMI payable would also be reduced. Yes, both of them are inversely proportional. So, expect to have a reduced EMI burden with longer personal loan tenure. 
  • Category of the Employer:In case you work in a leading MNC or Fortune 100/500 company, it would be easy for you to get a personal loan at attractive interest rates. And, by getting a loan at competitive interest rates, you can expect to have pocket-friendly personal loan EMI
  • Get Balance Transfer: Opt for personal loan balance transfer and enjoy affordable EMIs. Simply transfer your existing personal loan to a lender offering a lower interest rate and enjoy a reduced monthly installment. 

Frequently Asked Questions (FAQs)

Q.Should I enter the monthly interest rate or yearly interest rate in the EMI calculator?
A.You have to enter the yearly interest rate in the online EMI calculator to get the precise EMI amount.

Q.How long does it take to calculate the personal loan EMI?
A. One cannot describe the exact timing as each personal loan calculator is different. But a calculator roughly takes a few seconds to calculate the EMIs on time.