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Calculate EMI for personal loans and unsecured loans
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Pro Tip
Maintain your EMI-to-income ratio below 40% for healthy finances. Consider prepayments to reduce total interest cost.
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Compare up to 3 different loan options side-by-side
| Metric | Option 1 | Option 2 | Option 3 |
|---|---|---|---|
| Monthly EMI | $2,149 | $2,100 | $3,274 |
| Total Interest | $28,963 | $26,011 | $17,859 |
| Total Amount | $128,963 | $126,011 | $117,859 |
See how changes in interest rate or loan tenure affect your EMI and total payment
| Scenario | Rate | Tenure | Monthly EMI | Total Interest | Difference |
|---|---|---|---|---|---|
| Current(Base) | 10.50% | 5Y | $2,149 | $28,963 | - |
| Adjusted | 10.50% | 5Y | $2,149 | $28,963 | $0 |
Smart suggestions to optimize your loan
Your EMI-to-income ratio is within the ideal range. This loan should be comfortable for your budget.
You have strong disposable income. Consider reducing tenure to save $5,793+ in interest with slightly higher EMI.
| Month | EMI | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $2,149 | $1,274 | $875 | $98,726 |
| 2 | $2,149 | $1,286 | $864 | $97,440 |
| 3 | $2,149 | $1,297 | $853 | $96,143 |
| 4 | $2,149 | $1,308 | $841 | $94,835 |
| 5 | $2,149 | $1,320 | $830 | $93,516 |
| 6 | $2,149 | $1,331 | $818 | $92,184 |
| 7 | $2,149 | $1,343 | $807 | $90,842 |
| 8 | $2,149 | $1,355 | $795 | $89,487 |
| 9 | $2,149 | $1,366 | $783 | $88,121 |
| 10 | $2,149 | $1,378 | $771 | $86,742 |
| 11 | $2,149 | $1,390 | $759 | $85,352 |
| 12(Year 1) | $2,149 | $1,403 | $747 | $83,949 |
| 13 | $2,149 | $1,415 | $735 | $82,535 |
| 14 | $2,149 | $1,427 | $722 | $81,107 |
| 15 | $2,149 | $1,440 | $710 | $79,668 |
| 16 | $2,149 | $1,452 | $697 | $78,215 |
| 17 | $2,149 | $1,465 | $684 | $76,750 |
| 18 | $2,149 | $1,478 | $672 | $75,273 |
| 19 | $2,149 | $1,491 | $659 | $73,782 |
| 20 | $2,149 | $1,504 | $646 | $72,278 |
| 21 | $2,149 | $1,517 | $632 | $70,761 |
| 22 | $2,149 | $1,530 | $619 | $69,231 |
| 23 | $2,149 | $1,544 | $606 | $67,687 |
| 24(Year 2) | $2,149 | $1,557 | $592 | $66,130 |
| 25 | $2,149 | $1,571 | $579 | $64,559 |
| 26 | $2,149 | $1,584 | $565 | $62,975 |
| 27 | $2,149 | $1,598 | $551 | $61,376 |
| 28 | $2,149 | $1,612 | $537 | $59,764 |
| 29 | $2,149 | $1,626 | $523 | $58,138 |
| 30 | $2,149 | $1,641 | $509 | $56,497 |
| 31 | $2,149 | $1,655 | $494 | $54,842 |
| 32 | $2,149 | $1,670 | $480 | $53,172 |
| 33 | $2,149 | $1,684 | $465 | $51,488 |
| 34 | $2,149 | $1,699 | $451 | $49,789 |
| 35 | $2,149 | $1,714 | $436 | $48,076 |
| 36(Year 3) | $2,149 | $1,729 | $421 | $46,347 |
| 37 | $2,149 | $1,744 | $406 | $44,603 |
| 38 | $2,149 | $1,759 | $390 | $42,844 |
| 39 | $2,149 | $1,775 | $375 | $41,070 |
| 40 | $2,149 | $1,790 | $359 | $39,279 |
| 41 | $2,149 | $1,806 | $344 | $37,474 |
| 42 | $2,149 | $1,821 | $328 | $35,652 |
| 43 | $2,149 | $1,837 | $312 | $33,815 |
| 44 | $2,149 | $1,854 | $296 | $31,961 |
| 45 | $2,149 | $1,870 | $280 | $30,092 |
| 46 | $2,149 | $1,886 | $263 | $28,206 |
| 47 | $2,149 | $1,903 | $247 | $26,303 |
| 48(Year 4) | $2,149 | $1,919 | $230 | $24,384 |
| 49 | $2,149 | $1,936 | $213 | $22,448 |
| 50 | $2,149 | $1,953 | $196 | $20,495 |
| 51 | $2,149 | $1,970 | $179 | $18,525 |
| 52 | $2,149 | $1,987 | $162 | $16,537 |
| 53 | $2,149 | $2,005 | $145 | $14,533 |
| 54 | $2,149 | $2,022 | $127 | $12,510 |
| 55 | $2,149 | $2,040 | $109 | $10,471 |
| 56 | $2,149 | $2,058 | $92 | $8,413 |
| 57 | $2,149 | $2,076 | $74 | $6,337 |
| 58 | $2,149 | $2,094 | $55 | $4,243 |
| 59 | $2,149 | $2,112 | $37 | $2,131 |
| 60(Year 5) | $2,149 | $2,131 | $19 | $0 |
This calculator provides estimates only. Actual loan terms, interest rates, processing fees, and monthly payments may vary based on your credit score, income stability, employment history, existing debt, lender policies, and current market conditions. The results should be used as a starting point for your research, not as guaranteed loan terms.
Always consult with a licensed financial advisor before making any personal loan decisions. This tool does not constitute financial advice and should not be the sole basis for any financial commitments. Consider all alternatives before taking on debt.
Lead Financial Analyst
Credentials: CFA (Chartered Financial Analyst), MBA Finance
Rajesh has 12+ years of experience in financial analysis and portfolio management across Asian and global markets. As a Chartered Financial Analyst (CFA), he ensures all financial calculators meet international banking standards including RBI, Fed, and ECB guidelines.
This calculator has been verified for accuracy by our team of experts and is reviewed monthly to ensure compliance with current regulations and industry standards.
Personal loans can be a financial lifeline or a debt trap—it all depends on understanding the true cost. We built this calculator after seeing too many borrowers surprised by hidden costs and interest burdens they didn't anticipate.
What makes this different: Beyond basic EMI calculations, we show you the complete picture—affordability analysis based on your income, debt-to-income ratios that lenders actually use, and prepayment simulations that can save you thousands in interest. Our tool helps you compare offers from different lenders on equal terms.
Smart borrowing tips: Consider prepayment options, compare total interest (not just EMI), ensure your EMI-to-income ratio stays below 40%, and always read the fine print on processing fees and prepayment penalties.
All calculations run locally in your browser. We don't store or transmit your financial data—your privacy is guaranteed.
A Personal Loan Calculator is a financial planning tool that instantly calculates your Equated Monthly Installment (EMI), total interest payable, and overall loan cost. Whether you're planning a wedding, funding education, consolidating debt, or managing a medical emergency, this calculator helps you make informed borrowing decisions.
The total amount you wish to borrow from the lender. This is the principal amount that will be repaid over the loan tenure along with interest. Consider borrowing only what you need to minimize interest costs.
The annual percentage rate charged by the lender on the loan amount. Personal loan interest rates typically range from 10% to 36% based on your credit score, income, and relationship with the lender. Even a 1% difference can significantly impact your total interest cost.
The duration over which you'll repay the loan, typically ranging from 1 to 7 years for personal loans. A longer tenure means lower monthly EMI but higher total interest paid, while a shorter tenure increases EMI but reduces overall interest cost.
Your monthly take-home salary or income. This helps calculate your EMI-to-income ratio and determines loan affordability. Lenders typically prefer that your total EMI obligations don't exceed 40-50% of your monthly income.
The total of all your current monthly EMI obligations from other loans (home loan, car loan, credit cards, etc.). This is crucial for affordability analysis as lenders consider your total debt burden when approving new loans.
Processing Fee: One-time fee charged by lenders, typically 1-3% of loan amount. Prepayment Amount: Extra amount paid towards loan principal to reduce tenure or interest burden. Prepayment Frequency: How often you plan to make additional payments (monthly or yearly).
Making the right personal loan decision requires understanding all aspects of your borrowing commitment. Our calculator provides powerful insights that help you navigate the personal loan landscape with confidence:
Precise Budget Planning: Calculate your exact monthly EMI obligation and assess whether it comfortably fits within your monthly budget. Factor in your existing expenses, savings goals, and emergency fund requirements to avoid financial strain.
Smart Loan Comparison: Compare multiple loan offers side-by-side by adjusting interest rates, tenures, and fees. Identify the most cost-effective option by analyzing total interest payable, EMI amounts, and overall loan cost across different scenarios.
Comprehensive Affordability Analysis: Our built-in affordability checker evaluates your EMI-to-income ratio, considering your existing financial obligations. Get instant feedback on whether the loan is Good, Moderate, or poses High risk to your financial stability.
Strategic Interest Savings: Simulate prepayment scenarios to discover how extra monthly or yearly payments can dramatically reduce your interest burden. Visualize potential savings of thousands of dollars through strategic early repayment.
Long-term Financial Planning: Understand the complete loan journey with detailed amortization schedules. Plan your tenure strategically to balance between manageable monthly payments and minimized total interest cost.
Personalized Recommendations: Receive AI-powered recommendations tailored to your specific financial situation. Get actionable advice on optimizing tenure, reducing interest, improving affordability, and maximizing savings.
Personal loan EMI is calculated using the reducing balance method, where interest is charged only on the outstanding principal amount. This mathematical formula ensures accurate monthly payment calculations that remain constant throughout the loan tenure:
EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ - 1]P = Principal loan amount (the total amount you borrow)
r = Monthly interest rate (Annual interest rate ÷ 12 months ÷ 100)
n = Total number of monthly installments (Loan tenure in years × 12)
Let's calculate EMI for a loan:
• Principal (P) = $100,000
• Annual Interest Rate = 12%
• Monthly Interest Rate (r) = 12 ÷ 12 ÷ 100 = 0.01 (1%)
• Loan Tenure = 3 years
• Number of Installments (n) = 3 × 12 = 36 months
Applying the formula:
EMI = 100,000 × 0.01 × (1.01)³⁶ / [(1.01)³⁶ - 1]EMI = 100,000 × 0.01 × 1.4308 / 0.4308EMI Result: $3,321
Total Payment = $119,556 | Total Interest = $19,556
Input the desired loan amount, the interest rate quoted by your lender, and your preferred loan tenure using the slider (1-20 years).
Optionally enter your monthly income and existing EMI obligations to get an affordability assessment and see if the loan fits your budget.
Expand advanced settings to include processing fees and plan prepayments. See how extra payments can reduce your interest burden significantly.
Review the EMI amount, total interest, amortization schedule, and affordability metrics. Use different scenarios to find your optimal loan structure.
Get immediate EMI results with real-time updates as you adjust loan parameters. No manual calculations needed.
Built-in affordability checker helps you understand if the loan EMI is sustainable based on your income and existing obligations.
View month-by-month payment breakdown showing principal and interest components, helping you understand loan repayment progression.
Interactive pie charts and graphs make it easy to visualize payment distribution and track your loan journey over time.
Plan prepayments to see potential savings. Understand how paying extra can reduce both tenure and total interest significantly.
Completely free to use with no registration required. Your data stays in your browser - we don't store any information.
Getting a personal loan is easy, but getting the **best** personal loan requires strategy and knowledge. Follow these expert tips to save thousands on interest and secure favorable terms:
Optimize Your Credit Score First
A credit score above 750 can reduce your interest rate by 2-4%. Before applying, check your credit report, dispute errors, pay off small debts, and reduce credit utilization below 30%. Even a 6-month wait to improve your score can save thousands.
Negotiate Aggressively
Don't accept the first offer. Banks have flexibility, especially if you have a good credit profile or existing relationship. Use competing offers as leverage. Ask for reduced processing fees, waived prepayment charges, and lower interest rates.
Choose the Right Tenure Strategically
Shorter tenures (1-3 years) minimize total interest but increase monthly EMI. Longer tenures (5-7 years) reduce EMI stress but cost significantly more. Use our calculator to find the sweet spot that balances affordability with cost efficiency.
Borrow Precisely What You Need
Banks often pre-approve higher amounts than you request. Resist the temptation. Every extra dollar borrowed costs you interest. Calculate your exact requirement and add only a small buffer (5-10%) for emergencies.
Factor in All Hidden Costs
The advertised rate isn't everything. Calculate the Annual Percentage Rate (APR) including processing fees (1-3%), GST, insurance charges, and other hidden costs. A lower interest rate with high fees might cost more than a slightly higher rate with minimal charges.
Compare Across Multiple Lenders
Don't limit yourself to your primary bank. Compare rates from at least 5-7 lenders including traditional banks, digital banks, NBFCs, and fintech platforms. Interest rate differences of even 1-2% can result in savings of thousands of dollars.
Prioritize Prepayment Flexibility
Choose loans with zero prepayment penalties. This flexibility allows you to make extra payments during windfalls (bonuses, tax refunds) to reduce interest burden. Even small prepayments in early years yield significant savings.
Time Your Application Wisely
Interest rates fluctuate with central bank policies and competitive pressures. Monitor rate trends and apply during promotional periods (festivals, year-end) when lenders offer discounted rates to meet targets.
Read the Fine Print Thoroughly
Understand all terms: prepayment charges (some charge 2-5%), late payment penalties, loan foreclosure costs, and whether interest rate is fixed or floating. A floating rate might seem attractive initially but could increase later.
Consider Employer Tie-ups and Relationships
Check if your employer has corporate tie-ups with banks offering preferential rates. Existing banking relationships (salary account, credit cards) can also help negotiate better terms and faster approvals.
Personal loan interest rates aren't one-size-fits-all. Lenders evaluate multiple factors to determine your rate, which can range from as low as 10% to as high as 36%. Understanding these factors empowers you to negotiate better terms:
Your credit score is the single biggest factor affecting your interest rate.
Higher, stable income signals lower default risk. Salaried employees with reputed employers get preferential rates. Self-employed individuals may face slightly higher rates due to income variability.
Smaller loans (under $10,000) might attract higher rates. Longer tenures increase lender risk and typically carry higher rates. The sweet spot is usually 2-5 years with moderate loan amounts.
Lenders prefer total EMI obligations (including new loan) below 40-50% of monthly income. Higher ratios signal financial stress and result in higher rates or rejection.
Existing customers with salary accounts, savings accounts, or credit cards often get preferential rates (0.5-2% lower) and faster approvals due to established trust and payment history.
Borrowers between 25-50 years get best rates. Those closer to retirement face higher rates or shorter maximum tenures. Some lenders cap personal loans at 60 or 65 years of age.
Central bank policies, inflation rates, and competitive pressures affect rates. Monitor for promotional periods when banks offer discounted rates to meet quarterly targets.
Some lenders offer slightly better rates for specific purposes like education, medical emergencies, or debt consolidation compared to general personal loans.
Before taking a personal loan, consider these alternative financing options that might offer better terms or lower costs:
Loan Against Fixed Deposits
Borrow against your fixed deposits at lower interest rates (typically 1-2% above FD rate). Your FD remains intact and continues earning interest.
Credit Card Balance Transfer
Transfer high-interest credit card debt to cards offering 0% APR promotional periods, saving significantly on interest charges.
Peer-to-Peer Lending
Connect with individual lenders through P2P platforms. Often offers competitive rates and flexible terms compared to traditional banks.
Home Equity Line of Credit
If you own property, leverage your home equity for lower interest rates. Interest may also be tax-deductible in some regions.
Gold Loan
Pledge gold jewelry or coins for quick loans at lower interest rates. Your gold is returned once you repay the loan.
Employer Loans
Many employers offer salary advances or employee loans with minimal or no interest. Check with your HR department.
Loan Against Securities
Use stocks, mutual funds, or bonds as collateral for loans at attractive interest rates while maintaining your investment portfolio.
Credit Union Loans
Credit unions typically offer lower interest rates and more flexible terms to their members compared to traditional banks.