Personal Loan EMI Calculator
Instalment and total interest on an unsecured personal loan, where rates run high and tenures short.
Result
- Total payment
- ₹6,15,197
- Principal plus interest
- Amount borrowed
- ₹5,00,000
- Final instalment
- ₹17,089.00
- Adjusted to clear the balance exactly
| Year | Principal paid | Interest paid | Total paid | Closing balance |
|---|---|---|---|---|
| Year 1 | ₹1,44,079 | ₹60,987 | ₹2,05,066 | ₹3,55,922 |
| Year 2 | ₹1,65,595 | ₹39,470 | ₹2,05,066 | ₹1,90,326 |
| Year 3 | ₹1,90,326 | ₹14,740 | ₹2,05,066 | ₹0 |
Estimates only, on a fixed reducing-balance rate. Actual instalments vary with the lender’s rounding, processing fees, insurance and any rate reset — always check the sanction letter.
Estimated from the numbers you entered — not a projection of guaranteed returns.
About this calculator
A personal loan is unsecured, so the rate is far higher than a home or car loan and the tenure much shorter. Both push the same way: the instalment is large relative to the amount borrowed. Enter the tenure in months, the way personal loans are usually quoted.
Formula
- EMI = P × i × (1 + i)^n ÷ ((1 + i)^n − 1)
- P = loan amount, i = annual rate ÷ 12 ÷ 100, n = tenure in months
- When i = 0 the formula collapses to EMI = P ÷ n
- Interest for a month = outstanding balance × i; the rest of the EMI reduces the balance
Frequently asked questions
Why is the interest total so large on a small loan?
Because the rate is high. On an unsecured loan the lender has no collateral to fall back on, and the rate carries that risk. Halving the tenure cuts the interest sharply — try it.
Is a flat rate the same as this rate?
No. This calculator uses a reducing-balance rate, where interest is charged only on what is still outstanding. A flat rate charges on the original amount throughout and works out considerably more expensive for the same headline number.
Are processing fees included?
No. Personal loan processing fees are usually a percentage of the amount deducted upfront, so the money that reaches your account is less than the loan amount while the EMI is calculated on the full amount.