How is personal loan EMI calculated?

Personal loan EMI is calculated using the reducing-balance method, same as other loans. The key factors are loan amount, interest rate (roughly 10–24% in India as of Sep 2026, depending on your credit profile and lender) and tenure (usually 1–5 years). This calculator shows EMI, total interest, a year-by-year amortization table and the true APR including the processing fee and GST.

What affects personal loan interest rates?

Your credit score (CIBIL 750+ gets best rates), income level, employer profile, existing debts, and loan amount all influence the interest rate. Salaried employees at reputed companies typically get lower rates than self-employed individuals.

Can I prepay a personal loan without penalty?

Usually not free. RBI rules bar prepayment charges only on floating-rate loans to individuals for non-business purposes, and most personal loans are fixed-rate. Lenders commonly charge a foreclosure fee of a few percent of the outstanding amount: HDFC Bank, for example, charges 4%, 3% or 2% depending on how many EMIs you have paid, and allows part-payments only after the first EMI, up to 25% of the outstanding, once a year (as of Sep 2026). Charges must be disclosed in your Key Facts Statement. Compare them with the interest you would save before prepaying.

Are personal loan EMIs tax-deductible?

Generally, no. One exception: if the money is used to buy, build or repair a house you own, the interest can count towards the house-property interest deduction under Section 22 of the Income-tax Act, 2025 (formerly Section 24(b)), within its limits, but for a self-occupied home only in the old tax regime. If the loan is used for business, the interest may be deductible as a business expense. Keep proof of how the money was used.

Personal Loan EMI Calculator

Calculate your personal loan EMI, total interest and true interest rate with fees, and compare offers from different lenders.

Loan Amount

Annual Interest Rate

Tenure

In years

Processing Fee

% of loan amount (18% GST is added)

Monthly EMI

True APR (incl. fee)
Total interest
Total payment

Where your payments go

of what you pay the lender is interest and fees

Principal Interest Fee + GST

Half the loan is repaid by

Year-by-Year Amortization

Year	Principal Paid	Interest Paid	Outstanding Balance

EMI calculated using reducing balance method with a fixed rate. True APR is the annual rate (monthly IRR × 12) at which the EMIs repay the amount you actually receive, i.e. the loan minus the processing fee and 18% GST on it. It excludes other charges such as insurance or prepayment fees. Results are indicative only.

What is a Personal Loan Calculator?

A personal loan calculator helps you estimate your monthly EMI, total interest paid, true annual percentage rate (APR, including the processing fee and GST), and the full repayment schedule for an unsecured personal loan. Unlike home or car loans that are secured by an asset, personal loans are collateral-free, so they are faster to disburse but carry higher interest rates, roughly 10–24% p.a. as of Sep 2026 (SBI 10.00–15.00%, HDFC Bank 9.99–24.00%). The 14% default is only an example.

The calculator also shows the true APR (factoring in the processing fee and GST) and a year-by-year amortisation table, so you can compare offers from different lenders on the same basis.

Worked example: ₹5 lakh personal loan at 14% for 3 years

Illustrative: a ₹5,00,000 loan at 14% a year for 3 years with a 2% processing fee. These are the calculator's default inputs, so the numbers above should match.

The EMI is ₹17,089, total interest is ₹1,15,197 and you repay ₹6,15,197 in all. The fee with GST is ₹11,800, deducted from what you receive, so the true APR is 15.69%, not 14%. That APR is the number to compare across lenders.

Stretching the same loan to 5 years drops the EMI to ₹11,634 but raises interest to ₹1,98,048, about ₹83,000 more. Take the longer tenure only if the 3-year EMI genuinely does not fit your budget.

How to Use This Personal Loan Calculator

1
Enter the loan amount
Personal loan amounts depend on the lender and your income; some banks (for example HDFC Bank) go up to ₹50 lakh. Borrow only what you need: more principal means more total interest.
2
Set the interest rate
Personal loan rates range from roughly 10–24% (Sep 2026). Your rate depends on your CIBIL score (750+ preferred), income, employer reputation, and loan amount. Compare at least 3 lenders before deciding.
3
Choose the tenure
Personal loans run 1–7 years. Shorter tenure = less total interest but higher EMI. Aim for the shortest tenure your budget allows; the worked example above shows how much that saves.
4
Add processing fee
Processing fees vary by lender (some charge a percentage, others a flat fee, e.g. HDFC Bank up to ₹6,500) and attract 18% GST. The calculator shows the true APR including the fee and GST. Use it to compare lenders offering different rate+fee combinations.

Things to Check Before Taking a Personal Loan

Compare Effective Rate, Not Just Advertised Rate

Compare a lender offering 12% with a 2% processing fee against one offering 13% with no fee: the effective cost matters more than the headline rate. Use the true APR shown in this calculator to compare fairly: here 13% with no fee (APR 13.00%) is cheaper than 12% with a 2% fee (APR about 13.7% over 3 years).

Check Prepayment Terms

Most personal loans are fixed-rate, so foreclosure and part-payment charges usually apply (HDFC Bank, Sep 2026: 4%, 3% or 2% of the outstanding, depending on how many EMIs you have paid; part-payments only after the first EMI, up to 25% of the outstanding, once a year). Lenders may also limit how often you can prepay. Read the fine print before signing, especially if you plan to prepay from future bonuses. To see what a part-payment would actually save after the fee, try the loan prepayment calculator.

Total EMI Burden

Ensure total EMIs (across all loans) stay under 40–50% of take-home pay. Overleveraging increases financial stress and damages CIBIL score if you miss payments during tough times.

Consider Alternatives

Before a personal loan, explore: a gold loan or a loan against your FD (usually cheaper than an unsecured loan; compare the APR), or an EPF partial withdrawal for eligible emergencies. Avoid Buy Now Pay Later for anything you cannot repay on time: late fees and interest can be high.

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