Personal Loan EMI Calculator
Repayment Amortization Schedule
| Month | Principal | Interest | Balance |
|---|---|---|---|
| Month 1 | ₹7,126 | ₹2,625 | ₹2,92,874 |
| Month 2 | ₹7,188 | ₹2,563 | ₹2,85,686 |
| Month 3 | ₹7,251 | ₹2,500 | ₹2,78,435 |
| Month 4 | ₹7,314 | ₹2,436 | ₹2,71,121 |
| Month 5 | ₹7,378 | ₹2,372 | ₹2,63,742 |
| Month 6 | ₹7,443 | ₹2,308 | ₹2,56,299 |
| Month 7 | ₹7,508 | ₹2,243 | ₹2,48,791 |
| Month 8 | ₹7,574 | ₹2,177 | ₹2,41,217 |
| Month 9 | ₹7,640 | ₹2,111 | ₹2,33,577 |
| Month 10 | ₹7,707 | ₹2,044 | ₹2,25,870 |
| Month 11 | ₹7,774 | ₹1,976 | ₹2,18,096 |
| Month 12 | ₹7,842 | ₹1,908 | ₹2,10,254 |
| showing first 12 months (full amortization schedule calculated) | |||
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Personal Loan EMI Formula
Calculates the fixed monthly installment payable towards a personal loan based on reducing balance method.
Worked Example: Loan of ₹5 Lakhs at 11% for 5 years
Understanding Personal Loan EMIs: Managing reducing interest rates
Aditya needed ₹5 Lakhs for a medical emergency. A lender offered him a loan at 11% interest p.a. for a tenure of 5 years. He wanted to understand how much his monthly repayment obligation would be and the total cost of credit.
Using the Personal Loan EMI Calculator, he found that his monthly EMI would be ₹10,871. Over 5 years, he would make 60 payments totaling ₹6,52,273, meaning the total interest cost was ₹1,52,273. Because the loan uses a reducing balance method, interest is calculated only on the outstanding principal each month, making it cheaper than flat-rate options.
Personal loans are unsecured credit lines, usually carrying higher interest rates than home or car loans. Understanding the EMI beforehand helps you match the repayment liability with your monthly cash flows.
Keep your total personal loan liabilities under 15% of your net monthly income. Use amortization schedules to plan prepayments, which directly reduce the outstanding principal and save on interest.
Frequently Asked Questions
What is a personal loan EMI?
EMI stands for Equated Monthly Installment. It is a fixed monthly payment consisting of principal repayment and interest charges, paid to clear a loan over a set tenure.
How is personal loan EMI calculated?
Personal loan EMIs are calculated on a reducing balance basis. The formula is: EMI = [P * r * (1 + r)^n] / [((1 + r)^n) - 1], where P is Principal, r is monthly interest rate, and n is tenure in months.
Can I prepay my personal loan?
Yes. Most banks allow prepayment or part-payment after 12 EMIs have been paid. Some banks charge a foreclosure fee of 2-4% on the outstanding principal amount.
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