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Personal Loan EMI Calculator

By KhatuLoans Editorial Team, edited by Hemant Kumar · Updated · Information only, not a lender

Your personal loan EMI is calculated as EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the loan amount, r is the monthly interest rate and n is the tenure in months. A ₹5 lakh loan at 14% per year for 36 months, for example, works out to an EMI of roughly ₹17,089, with about ₹1.15 lakh paid as interest over the three years. Use the calculator below with your own figures.

Calculate your personal loan EMI

Example values only. Replace them with the figures in your own offer.

Monthly EMI-
Total interest-
Total repayment-

Reducing-balance method. Excludes processing fees, GST, insurance and other charges.

How this EMI calculator works

The calculator uses the reducing-balance method, which is how practically every bank and NBFC in India charges interest on personal loans. Each month, interest is charged only on the principal still outstanding. Early EMIs are therefore mostly interest; as the balance shrinks, more of each EMI goes towards the principal. The EMI itself stays the same every month, which is what makes it easy to budget around.

Three inputs decide the number. The loan amount moves the EMI in direct proportion: borrow 20% more and the EMI rises 20%. The interest rate compounds quietly: on a ₹5 lakh, 5-year loan, the difference between 12% and 16% is about ₹1,040 a month, which adds up to roughly ₹62,000 over the tenure. Tenure works in the opposite direction: stretching from 36 to 60 months cuts the monthly EMI sharply but increases the total interest you pay, often by 60 to 70 percent.

How to read the three outputs

Monthly EMI is the figure to test against your budget: after rent, bills and existing EMIs, can you pay this comfortably every month for the whole tenure, including months with festival spending or school fees? Total interest is the real price of the loan; comparing it across two tenures shows you exactly what the lower EMI of a longer tenure costs. Total repayment is principal plus interest, before fees; a processing fee of 1 to 3 percent plus 18% GST on that fee sits on top, so a ₹5 lakh loan can cost ₹6,000 to ₹18,000 before the first EMI is debited.

If the EMI the calculator shows feels tight, try the tenure calculator to see how many months you actually need at an EMI you can pay, or the affordability calculator to work backwards from your income and expenses. The rates to type in are on our personal loan interest rates page.

What the calculator does not include

The EMI shown excludes the one-time processing fee and the 18% GST charged on it, any insurance premium the lender bundles into the disbursal, stamp duty where applicable, and penal charges if you ever miss an EMI. It also assumes the rate stays fixed, which is true for most personal loans in India since they are usually fixed-rate products. The lender’s Key Fact Statement (KFS), which the RBI requires for retail loans, states the annual percentage rate (APR) covering the all-in cost; always compare offers on APR, not the headline rate.

EMI calculator: frequently asked questions

What is the EMI for a 5 lakh personal loan?

At 14% per year, a Rs 5 lakh personal loan costs about Rs 17,089 per month for 36 months, Rs 13,663 for 48 months, or Rs 11,634 for 60 months. The longer the tenure, the lower the EMI but the higher the total interest: roughly Rs 1.15 lakh over 3 years versus Rs 1.98 lakh over 5 years at the same rate.

Is the EMI fixed for the whole tenure of a personal loan?

Usually yes. Most personal loans in India are fixed-rate loans, so the EMI set at disbursal stays the same until the last instalment. A few lenders offer floating-rate personal loans, where the EMI or tenure can change when the benchmark rate moves; the sanction letter will say which type you have.

Does this calculator use the flat rate or reducing-balance method?

Reducing balance, which is the standard method for personal loans from banks and NBFCs. Be careful with offers quoted at a "flat rate": a 10% flat rate on a 3-year loan costs about the same as a 17 to 18% reducing-balance rate. The Key Fact Statement must state the APR, which makes flat-rate offers comparable.

Why is my bank's EMI slightly different from the calculator?

Small differences come from rounding, the exact day of disbursal (broken-period interest for the first month), and whether the lender deducts the processing fee from the disbursal or adds it to the loan. Differences of more than a few rupees usually mean a different rate or tenure than you assumed; check the amortisation schedule in your loan agreement.

How much of my income should go to the EMI?

Lenders typically allow total EMIs up to 40 to 55 percent of net monthly income (the FOIR), but that is a ceiling, not a target. A comfortable personal loan EMI is one that fits after rent, bills and existing EMIs with at least a 10% income buffer left over. Our affordability calculator does this arithmetic for you.

Can I reduce my EMI after taking the loan?

Yes, mainly by part-prepaying the principal and asking the lender to recompute the EMI, or by transferring the balance to a lender with a lower rate. For floating-rate personal loans sanctioned on or after 1 January 2026, RBI rules bar prepayment charges for individual borrowers; fixed-rate loans may still carry a foreclosure charge, so check our prepayment guide.

Official sources and further reading

These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.

Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.

This page is general information, not personalised financial advice and not an offer. Rates, fees and eligibility shown are indicative ranges based on general market practice in India and vary by lender and applicant. Confirm the exact figures in the lender's Key Fact Statement and sanction letter before you sign.