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Personal Loan EMI Calculator: EMI, Interest and Fee

What will my personal loan EMI and total cost be?

Personal loans are unsecured, so rates are higher and a processing fee is common. Enter the amount, rate, tenure and fee to see your EMI, the interest you will pay and the real extra cost of the loan before you accept an offer.

Your result

A ₹5 L personal loan at 14% for 3 yrs has an EMI of ₹17,089, so you repay ₹6.15 L in total, of which ₹1.15 L is interest. The ₹10,000 processing fee is extra.

Monthly EMI
₹17,089
for 3 yrs
Total interest
₹1.15 L
19% of total payout
Total payout
₹6.15 L
principal plus interest
Interest in year 1
30%
of your EMIs; 7% by year 3
Processing fee
₹10,000
2% of the loan, paid once
  • InfoEMIs are rounded to the nearest rupee and the last EMI is adjusted to clear the loan exactly. Your lender's rounding can differ by a few rupees.
  • InfoThe processing fee is paid once and is not part of the EMI; GST on the fee is not included.

Change the numbers

Breakdown

Where your ₹6.25 L goes

Where your ₹6.25 L goesDonut chart. Principal: ₹5 L (80%); Interest: ₹1.15 L (18.4%); Processing fee: ₹10,000 (1.6%).
  • Principal₹5 L · 80%
  • Interest₹1.15 L · 18.4%
  • Processing fee₹10,000 · 1.6%
For every ₹100 you borrow you pay about ₹23 in interest over the full tenure.
Show the numbers
PartValueShare
Principal₹5 L80%
Interest₹1.15 L18.4%
Processing fee₹10,0001.6%

How each year's EMIs split: principal versus interest

  • Principal repaid
  • Interest paid
Loan year 3₹1.9 LPrincipal repaid₹14,739Interest paid₹2.05 LTotal
How each year's EMIs split: principal versus interestStacked area chart of Principal repaid, Interest paid by loan year, from 1 to 3. At loan year 3: Principal repaid ₹1.9 L, Interest paid ₹14,739, Total ₹2.05 L.
In year 1 about 30% of your EMIs goes to interest; by year 3 only 7% does.
Show the numbers
Loan yearPrincipal repaidInterest paidTotal
1₹1.44 L₹60,987₹2.05 L
2₹1.66 L₹39,470₹2.05 L
3₹1.9 L₹14,739₹2.05 L

Balance still owed and interest paid so far

  • Balance still owed
  • Interest paid so far
Loan year 3₹0Balance still owed₹1.15 LInterest paid so far
Balance still owed and interest paid so farLine chart of Balance still owed, Interest paid so far by loan year, from 0 to 3. At loan year 3: Balance still owed ₹0, Interest paid so far ₹1.15 L.
The balance falls slowly at first because early EMIs are mostly interest; the interest line climbs fastest in the early years.
Show the numbers
Loan yearBalance still owedInterest paid so far
0₹5 L₹0
1₹3.56 L₹60,987
2₹1.9 L₹1 L
3₹0₹1.15 L

Repayment schedule

PeriodEMIs paidInterestPrincipalBalance
Year 1₹2,05,068₹60,987₹1,44,081₹3,55,919
Year 2₹2,05,068₹39,470₹1,65,598₹1,90,321
Year 3₹2,05,060₹14,739₹1,90,321₹0

Worked example

Example with the default numbers — change them above.

Personal loan amount: ₹5,00,000 · Interest rate (per year): 14% · Loan tenure: 3 yrs · Processing fee: 2%

A ₹5 L personal loan at 14% for 3 yrs has an EMI of ₹17,089, so you repay ₹6.15 L in total, of which ₹1.15 L is interest. The ₹10,000 processing fee is extra.

Monthly EMI ₹17,089 · for 3 yrs
Total interest ₹1.15 L · 19% of total payout
Total payout ₹6.15 L · principal plus interest
Interest in year 1 30% · of your EMIs; 7% by year 3
Processing fee ₹10,000 · 2% of the loan, paid once

How the Personal Loan EMI Calculator works

  1. Enter the loan amount, the yearly rate in your offer and the tenure in years.
  2. Add the processing fee percentage from your offer letter. It is paid once and is not part of the EMI.
  3. The yearly rate is divided by 12 and charged each month on the balance still owed.
  4. The EMI formula gives the fixed payment that clears the loan in exactly your chosen months.
  5. The donut shows principal, interest and the fee, so you see the full cost of borrowing at a glance.

Personal loan EMI formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P = loan amount
r = yearly interest rate ÷ 12 ÷ 100
n = tenure in months (years × 12)
Processing fee = loan amount × fee percentage (paid once)

Assumptions and limits

  • The rate is fixed for the whole tenure and interest is charged on the reducing balance.
  • The processing fee is paid once, separately from the EMI. If your lender deducts it from the amount disbursed, the cash you receive is smaller than the loan.
  • GST on the processing fee, insurance and other charges are not included.
  • EMIs are rounded to the nearest rupee and the last EMI is adjusted to clear the loan.
  • Part-payment and foreclosure rules differ by lender and loan type. Check your agreement.

Frequently asked questions

How is personal loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with P the loan, r the monthly rate and n the months. A ₹5 lakh personal loan at 14% for 3 years has an EMI of ₹17,089 and total interest of about ₹1.15 lakh. With a 2% processing fee, you also pay ₹10,000 once.

How does the processing fee change the real cost of a personal loan?

The fee is paid once at the start, so it raises the true cost of borrowing even though it is not in the EMI. On a ₹5 lakh loan, a 2% fee is ₹10,000. If the lender deducts it before disbursal, you receive less than ₹5 lakh but still repay on the full amount, which lifts your effective rate.

Why are personal loan interest rates higher than home loan rates?

A personal loan is unsecured: the lender has no property or vehicle to claim if you stop paying, so it charges more to cover that risk. Rates also depend on your credit score, income, employer and the lender. A higher rate raises both the EMI and the total interest, so compare offers on the same tenure.

Is a 3 year or 5 year personal loan cheaper?

A shorter loan costs less interest but has a higher EMI. On ₹5 lakh at 14%, 3 years gives an EMI of ₹17,089 and about ₹1.15 lakh of interest. Over 5 years the EMI falls to ₹11,634 but interest rises to about ₹1.98 lakh. Choose the shortest tenure with an EMI that fits your budget.

Can I prepay a personal loan?

Most lenders allow it, but on fixed-rate personal loans some charge a fee, often after a minimum number of EMIs. Under RBI rules a charge can apply only if it is stated in your sanction letter and Key Facts Statement, and floating-rate loans to individuals carry none. The loan prepayment and preclosure calculators show the interest you would save and help you compare that with any charge.

Does applying for a personal loan affect my credit score?

Each formal application usually triggers a credit enquiry, and several applications in a short time can lower your score a little. Repaying on time helps your credit history over the long run, while missed EMIs hurt it. Compare offers from a few lenders before submitting formal applications.

Sources

Logic and rates last verified on .

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