Three numbers, not one
- The instalment — what leaves your account each month.
- The total repaid — the only figure that compares two offers honestly.
- The net disbursal — what actually reaches you after the fee.
- Most calculators show the first and let you assume the rest.
- On short tenures the third matters most, and nobody prints it.
Before you start
Enter the reducing-balance rate, not a flat one. If you were quoted a flat rate, roughly double it first — 9% flat behaves like about 16% reducing. Getting this wrong makes every number below look better than reality.
The calculator
Salary advance EMI calculator
Change any figure and the results update as you type. Nothing is sent anywhere and nothing is stored.
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Why the processing fee matters more here than anywhere else
A processing fee is charged once, whatever the tenure. Spread across five years it is a rounding error. Spread across three months it can be most of what the loan costs you.
Run the calculator with a three-month tenure and then a twenty-four month one, keeping everything else fixed. The interest changes a great deal; the fee does not change at all. On the short tenure, that fixed fee is doing most of the damage.
This is also why the effective cost of a very short advance is so much higher than its quoted rate suggests. Borrow ₹50,000 at a 2% fee, receive about ₹48,820 after GST, and repay interest calculated on ₹50,000. Over one month, that gap alone is worth more than the interest.
How the EMI is worked out
The standard reducing-balance formula, the same one banks use:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Where P is the loan amount, n is the number of months, and r is the monthly rate — the annual rate divided by 12, then by 100. For 24% a year, r is 0.02.
Every instalment is part interest and part principal. Early on it is mostly interest, because the balance is still high. That is why prepaying in the first months saves considerably more than prepaying near the end.
Three things to check against your offer letter
- Does the EMI in the letter match what this calculator gives? If it is higher, the rate is probably flat rather than reducing, or a charge has not been mentioned.
- Does the disbursal figure match? Sanctioned amount minus fee minus GST. A difference means a charge you have not been told about.
- Is there a foreclosure charge? The calculator cannot know it. On a short tenure, closing early sometimes costs more than the interest it saves.
Once the numbers make sense, check how much you can actually borrow with the eligibility calculator, and read what each charge really is. If you are choosing between tenures, the three-month page and the 30 day page set out the trade directly.
Numbers are the easy part. Whether to borrow at all is covered in the advance salary loan guide, and the personal loan comparison covers the case where the same money costs less over a longer tenure.
Converting a flat rate before you enter it
If your lender quoted a flat rate, entering it here gives a comfortingly wrong answer. Convert it first.
| Quoted as flat | Behaves roughly like |
|---|---|
| 6% | About 11% reducing |
| 9% | About 16% reducing |
| 12% | About 21% reducing |
| 15% | About 27% reducing |
The rule of thumb is to nearly double it. The reason is simple: a flat rate charges interest on the original amount for the whole tenure, including the final month when you owe almost nothing. Any regulated lender will restate a flat quote on a reducing basis if you ask — and one that cannot has told you more than the number would have.
Where each instalment actually goes
Every EMI splits into interest and principal, and the split shifts month by month. Early on it is mostly interest, because the balance is still high.
| On a 12-month loan | Roughly what the EMI is doing |
|---|---|
| Months 1 – 3 | Heavily interest — the balance has barely moved |
| Months 4 – 8 | Shifting, principal catching up |
| Months 9 – 12 | Mostly principal — little interest left to charge |
This is why prepaying in month two saves far more than prepaying in month ten, and why closing a loan near the end often costs more in foreclosure charges than it saves in interest. Both numbers are worth working out before you decide.
Choosing a tenure — the test that works
A longer tenure lowers the instalment and raises the total cost. There is no way around that trade, and the calculator will show you both if you run it twice.
The test that serves most people: take the shortest tenure whose EMI you can pay without needing to borrow again.
- A tenure so short that you take a second advance next month is the most expensive option available, whatever the arithmetic says.
- A tenure stretched to make the EMI feel comfortable quietly doubles what the money costs.
- Use your lean month to judge, not an average one. An instalment that only works in a good month is a bounce waiting for a date.
Run it twice, not once
Enter your amount at three months and again at twelve. The instalment changes a great deal; the processing fee does not change at all. On the short run that fixed fee is doing most of the damage — which is the single most useful thing this calculator can show you, and the reason a low headline rate on a one-month advance means very little.
What a missed instalment costs
The calculator cannot model this, and it matters more than the rate.
- Day 1 — auto-debit fails. A bounce charge from the lender, usually another from your bank.
- Days 1 – 15 — penal interest on the overdue amount.
- Around day 30 — reported to the credit bureaus. This is the expensive part, and it stays visible for years.
- Day 90 — classified non-performing. Serious, and it affects every future application.
If you know an instalment will fail, call the lender before the debit date. Most will move it once on request, and a moved date is not reported. A bounce is. The charges page covers the rupee amounts.
Checking the calculator against a real offer
When a sanction letter arrives, three comparisons take two minutes and occasionally save a great deal.
- Does the EMI match? If the letter's instalment is higher than this calculator gives for the same inputs, the rate is probably flat rather than reducing, or a charge has not been mentioned.
- Does the disbursal match? Sanctioned amount minus fee minus GST. A difference means a charge nobody told you about.
- Is there a foreclosure charge or lock-in? The calculator cannot know it, and on a short tenure it can exceed the interest you would save by closing early.
Once the numbers make sense, check how much you should borrow, run the eligibility calculator to see what your existing EMIs leave room for, and confirm the five eligibility checks before applying anywhere.
More Advance Salary Loan Guides
Where This Page Sits
This is one page in a larger guide. The pillar covers the whole subject end to end — rates, eligibility, documents and the process — and links to every page in the silo.
Comparing products rather than digging into one? These are the main guides.
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Responsible borrowing note
All rates, fees and eligibility figures on this page are indicative market ranges for illustration and are not an offer. Approval, pricing and the sanctioned amount rest entirely with the bank or NBFC. Money Bharti is a loan marketplace, not a lender. Assess your repayment capacity honestly and read the sanction letter in full before signing. This content is general information, not financial advice.