This personal loan EMI calculator helps you calculate the monthly payment on your personal loan EMI, total paid, cost with interest and the estimated payoff date. There is in depth information about this financial product below the form.

Loan amount: *
Loan term: *
Annual Interest rate: *
Payment frequency: *
Loan start date:

What is EMI?

EMI is the abbreviation for equated monthly installment which is an amount payable on  a monthly basis for the repayment of a personal loan.  It consists of both principal and interest on the money borrowed. Fixed regular payments on a personal loan are paid until the total amount due is paid in full. Initially a large portion of the EMI payment is devoted to the interest, and then as the personal loan matures larger portions of it go towards the principal.

Another observation it that EMI is directly proportional to the amount borrowed and inverse proportional to time period.

How to calculate EMI?

Even though EMI is a fixed monthly payment the two parts it consists of vary from one month to another as the loan matures. The formula to calculate this constant regular payment figure is explained here:

Equated Monthly Installment - EMI formula


P = personal loan amount taken;

r  = monthly interest rate in decimal format obtained as Annual interest rate/1200.

n = loan tenure in months obtained as Loan term in years multiplied by 12.

Apart from calculating equated monthly installment by hand you can also try this personal loan EMI calculator that can do as many simulations as needed by considering different levels of amount taken, specific payoff term and certain interest levels.

Example of a result

For instance someone borrows at the beginning of June 2015 an amount of $10,000 for 24 months (2 years) at an interest rate of 3.55%. Which is the monthly payment he will need to pay?

Monthly payment: $432.25
Loan amount: $10,000.00
Total Paid: $10,373.98
Total Interest Paid: $373.98
Loan term: 24 months
Annual Interest rate: 3.55 %
Payment frequency: Monthly
Estimated payoff date: May, 2017

08 Apr, 2015