An EMI calculator answers one question in a second: what will this cost me each month? The more useful question is what it costs in total, and that is the number most calculators bury. Both are below.
Use the calculator, then read on for the formula lenders actually apply, why a longer tenure is not the bargain it looks like, and how the same EMI can hide two very different loans.
Work out your EMI
Personal loan EMI calculator
Change any figure and the results update as you type. Nothing is sent anywhere and nothing is stored.
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The highlighted row in that table is the tenure you entered. Compare it with the row above and the row below before you decide: the EMI column and the total interest column move in opposite directions, and lenders only ever show you the first one.
To go the other way — working out how much you could borrow rather than what a given amount costs — use the affordability calculator, which applies the same FOIR rule lenders do.
The formula
Every lender in India uses the same reducing-balance formula. There is nothing proprietary about it:
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
- P — the principal, the amount actually disbursed
- r — the monthly rate, which is the annual rate ÷ 12 ÷ 100. A 13% annual rate is 0.010833
- n — the tenure in months, so five years is 60
Worked through on ₹10 lakh at 13% for five years, the EMI comes to about ₹22,753. Over 60 months you repay roughly ₹13.65 lakh, of which ₹3.65 lakh is interest.
Where each instalment goes
Early EMIs are mostly interest, later ones mostly principal. On that ₹10 lakh loan, the first instalment is about ₹10,833 interest and ₹11,920 principal. The final one is about ₹244 interest and ₹22,509 principal. This is why closing a loan in its first year saves far more interest than closing it in its last.
What a longer tenure actually costs
Stretching the tenure is the easiest way to bring an EMI down, and the most expensive. Same ₹10 lakh, same 13%:
| Tenure | Monthly EMI | Total interest | Total repaid |
|---|---|---|---|
| 2 years | ₹47,542 | ₹1,41,008 | ₹11,41,008 |
| 3 years | ₹33,694 | ₹2,12,984 | ₹12,12,984 |
| 5 years | ₹22,753 | ₹3,65,180 | ₹13,65,180 |
| 7 years | ₹18,190 | ₹5,27,960 | ₹15,27,960 |
Going from five years to seven cuts the monthly figure by ₹4,563 — real relief if cash flow is tight. It also adds about ₹1.63 lakh to what you repay. Neither choice is wrong; what is wrong is making it while looking only at the EMI column.
The sensible rule: pick the shortest tenure whose EMI you can sustain without strain, not the longest one you are offered. Lenders default to showing you longer tenures because a smaller monthly number closes more sales.
What a rate difference is worth
₹10 lakh over five years, varying only the rate:
| Rate | EMI | Total interest | Extra vs 11% |
|---|---|---|---|
| 11% | ₹21,742 | ₹3,04,520 | — |
| 13% | ₹22,753 | ₹3,65,180 | ₹60,660 |
| 15% | ₹23,790 | ₹4,27,400 | ₹1,22,880 |
| 18% | ₹25,393 | ₹5,23,580 | ₹2,19,060 |
Four percentage points is worth over ₹2 lakh on a single loan. That is what your credit score is worth in rupees, and why repairing it before applying pays better than almost anything else you can do in a month.
What the EMI does not include
The calculator gives you the instalment. It does not give you the cost of the loan. Sitting outside the EMI:
- Processing fee — 1% to 3% plus GST, deducted from the disbursal. On ₹10 lakh that is ₹11,800 to ₹35,400 you never receive but do repay.
- Foreclosure charge — up to 4% of the outstanding if you close early.
- Bounce charges — ₹500 to ₹750 plus GST per missed instalment, and reported to the credit bureaus.
- Bundled insurance — sometimes added to the principal, which quietly raises both the EMI and the interest. Ask whether it is optional.
Two loans with an identical EMI can differ by ₹40,000 in real cost once these are counted. Compare the total outflow, not the monthly figure.
Prepayment, and when it is worth it
Because interest is front-loaded, prepaying early saves disproportionately. A ₹2 lakh part-prepayment in year one of that ₹10 lakh loan saves roughly ₹90,000 of interest. The same ₹2 lakh in year four saves under ₹25,000.
Set that against the prepayment charge. If the lender charges 2% on the prepaid amount, the year-one payment costs ₹4,000 to save ₹90,000 — clearly worth it. In year four the arithmetic is much closer. Most lenders allow foreclosure after 6 to 12 EMIs; if you expect a bonus or a lump sum, choose a lender with low prepayment charges at the outset rather than discovering them later.
Questions this page gets asked
How is personal loan EMI calculated?
Using the reducing-balance formula EMI = P × r × (1+r)^n ÷ [(1+r)^n − 1], where P is the principal, r the monthly rate (annual ÷ 12 ÷ 100) and n the tenure in months. Every lender in India uses the same formula.
What is the EMI on a ₹10 lakh personal loan?
At 13% over five years it is about ₹22,753 a month, and you repay roughly ₹13.65 lakh in total. Over seven years the EMI drops to about ₹18,190 but the total rises to ₹15.28 lakh.
Does a longer tenure reduce the cost of my loan?
No. It reduces the monthly instalment and increases the total. On ₹10 lakh at 13%, moving from five years to seven cuts the EMI by ₹4,563 and adds about ₹1.63 lakh to what you repay.
Is the EMI the full cost of the loan?
No. Processing fees of 1% to 3% plus GST are deducted from the disbursal, and foreclosure charges of up to 4% apply if you close early. Two loans with the same EMI can differ by tens of thousands once fees are counted.
Can I change my EMI after the loan starts?
Not directly, but a part-prepayment reduces either the EMI or the tenure — most lenders let you choose which. Reducing the tenure saves more interest; reducing the EMI helps monthly cash flow.
Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is highest at the start. On a ₹10 lakh loan at 13%, the first instalment is about ₹10,833 interest and ₹11,920 principal; by the last it is ₹244 interest and ₹22,509 principal.
Is it worth prepaying my personal loan?
Early, almost always. A ₹2 lakh prepayment in year one of a five-year ₹10 lakh loan saves roughly ₹90,000 in interest; the same amount in year four saves under ₹25,000. Weigh it against the lender's prepayment charge.
The other three calculators
This page answers what a given loan costs each month. Three related questions come up constantly, and each has its own tool.
- Eligibility calculator — how much you can borrow in the first place, using the FOIR rule lenders actually apply, including the 5% they count against your credit card balance.
- Prepayment calculator — what a lump sum saves after the part-payment charge, and whether to shorten the loan or lower the EMI. Shortening usually wins by a wide margin.
- Balance transfer calculator — whether switching lenders is worth it once the foreclosure charge and the new processing fee are counted, with a break-even in months.
See the EMI on an offer you can actually get
A calculator uses the rate you type in. Your real EMI depends on the rate you are offered, and that depends on your profile. Money Bharti compares offers from 100+ RBI-registered banks and NBFCs — the check is a soft enquiry, so your credit score is untouched, and comparing is free.
Related reading: the full personal loan guide, eligibility criteria, what decides your rate, and documents required. To see how much you can borrow rather than what an amount costs, use the affordability calculator.