Banks and financial institutions provide personal loans to satisfy your every need. Several institutions can help you with all of your financial requirements. Borrowers struggle to choose the best bank from several possibilities. Getting a personal loan nowadays is simple. This article will also provide you with an explanation of how the EMI calculator for personal loan works.

The vast majority of people have multiple loans. As a result, the equivalent monthly installment (EMI), particularly for those who have a personal loan, makes for a considerable portion of our monthly budget. Despite this, few people do not bother to learn how banks compute EMIs. It is smarter to know your EMIs on a prior basis so as to balance your monthly budget and other financial obligations. In this article, we will learn the calculation of your monthly installments. 

Personal Loan EMI Calculator

The Equated Monthly Installment, or EMI, is a monthly equated payment made by the borrower every month to the lender. Typically, the borrower will pay this on a specific calendar day until the loan balance and interest accumulated over the loan term are paid off. The interest rate is higher in the early months of the loan, but it gradually reduces with each installment.

The principal loan amount, as well as the interest rate, are included in your EMIs. Your EMI is determined by the principal amount of the loan, the interest rate, and the loan duration.


  • Principal Amount: The primary amount is the amount of the debt for which the borrower is accountable. It varies depending on the bank’s creditworthiness rating of the consumer. The principal amount of a personal loan could be up to Rs 25,00,000, however, it varies according to the lender.
  • Interest Rate: The annual percentage rate of interest charged on a loan’s principal amount is represented as a percentage of the loan amount.
  • Loan Tenure: The length of a loan, often known as the loan term, is the amount of time it takes to repay it. During the term of the loan, the borrower must pay both the principal and the total interest. A personal loan might last anywhere from a few months to several years.


EMI Calculation for Personal Loans

The EMI calculator for personal loans can assist you in calculating your monthly payment, known as the EMI. It’s a simple calculator that can assist you with your finances and can help to know your EMIs on a prior basis. Using the personal loan EMI Calculator, enter the loan amount, the bank’s interest rate, and the loan length to calculate your personal loan EMI.


The formula for calculating personal loan installments is as follows:

EMI = P x R x [{(1 + R)^n} / {(1+R)^n-1}] 

Where, P – the loan amount borrowed, known as the principal amount,

R- the personal loan interest rate on the loan,

The personal loan interest rate for monthly EMI= [(annual rate/12)/100] 

And n- Duration of the loan in months.

For instance, you took out a Rs 10 lakh personal loan with a 13.5% interest rate for over 3 years. 

r = [(annual rate /12)/100] = (13.5/12)/100 = 1.125/100 = 0.01125 

n = 36

EMI = P x R x [{(1 + R)^n} / {(1+R)^n-1}] 

 = 10,00,000 x 0.01125 x [{(1 + 0.01125)^36}/{1-(1 + 0.01125)^36}] 

 = 10,00,000 x 0.01125 x [3.02] 

EMI = Rs 33,975

The Bottom Line

It is always beneficial to use the personal loan EMI calculator so as to plan your monthly budget and other miscellaneous expenses. Personal loan EMIs are paid every month to the bank and which is why you should choose the appropriate EMI according to your repayment capacity. You should use the EMI that you can be able to pay every month without defaulting.


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