Personal Loan EMI Calculator
Estimate your personal loan EMI and the true cost of borrowing — total interest plus the one-time processing fee — from the amount, rate and tenure.
Personal Loan Details
Monthly EMI
₹16,847
Total interest: ₹1,06,491 · Total cost: ₹1,16,491
Total Interest
₹1,06,491
Processing Fee
₹10,000
Total Payment
₹6,06,491
Total Cost of Loan
₹1,16,491
Interest + processing fee
How It Works
A personal loan is unsecured — there is no collateral — so lenders charge higher interest, usually 11–24% per year, than secured home or car loans. Your EMI is fixed by the loan amount, the interest rate and the tenure (typically 1–7 years). Because the loan is small and short, the EMI is sensitive to the rate: a couple of percentage points changes your total interest noticeably. Two costs are easy to overlook: the one-time processing fee (often 1–3% of the loan, deducted upfront), and any prepayment charge. This calculator computes the EMI, the total interest over the tenure, the processing-fee amount, and the combined total cost of the loan — the number that really matters when comparing offers from different lenders.
Formula
EMI = P·r·(1+r)^n / ((1+r)^n − 1). Total cost = total interest + processing fee (fee = loan × fee% ).
Frequently Asked Questions
What interest rate do personal loans charge?
Typically 11–24% per year, depending on your credit score, income and lender. Because personal loans are unsecured, rates are much higher than home (~8.5%) or car loans (~9–12%).
What is the processing fee on a personal loan?
A one-time charge, usually 1–3% of the loan amount, deducted upfront or added to the loan. On a ₹5 lakh loan a 2% fee is ₹10,000 — the calculator adds it to your total cost.
How can I lower my personal loan EMI?
Borrow less, choose a longer tenure (lowers EMI but raises total interest), or get a lower rate with a strong credit score. The calculator shows the trade-off between EMI and total interest.
Should I prepay a personal loan?
Often yes — at 11–24% interest, prepaying gives a high guaranteed saving. Check for foreclosure charges, but clearing high-rate unsecured debt early is usually a smart move.
Is a personal loan cheaper than a credit card?
Almost always. Credit cards charge 36–48% a year; a personal loan at 11–24% is far cheaper, which is why consolidating card dues into a personal loan can cut your interest sharply.