How to use the Personal Loan EMI Calculator
- 1. Enter the loanType the amount, the yearly rate and the tenure in months.
- 2. Add the feeEnter the processing fee as a percentage, including GST.
- 3. Compare offersUse the real yearly cost to compare two lenders fairly.
How the EMI and real cost are calculated
The EMI uses the reducing balance formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). Personal loans have one extra twist: a processing fee is usually taken out before the money reaches you, yet you repay the full amount.
For example, take ₹5,00,000 at 12% for 36 months with a 2% fee. The EMI is ₹16,607 and total interest is ₹97,858. The fee is ₹10,000, so ₹4,90,000 reaches your account. Because you pay EMIs on ₹5,00,000 but received less, the real yearly cost is about 13.41%, not 12%.
This real cost is the rate at which your EMIs equal the money you actually received. It assumes you run the loan for the full tenure.
Comparing personal loan offers
A lower headline rate is not always the cheaper loan. Enter each offer here and compare the real yearly cost.
- Fees. Look for processing, insurance and documentation charges. Add the ones you cannot avoid to the fee box.
- Prepayment terms. Many personal loans charge a fee for early closure or block it for the first few months. Check before you plan to prepay.
- Tenure. A shorter tenure means a higher EMI but much less interest.
- Your budget. Keep the EMI at a level you can pay in a bad month too.
A personal loan is usually unsecured, so it often costs more than a secured loan. If you are buying a car or a house, compare the car loan and home loan calculators. Borrowing for study? The education loan EMI calculator covers a moratorium. If you are thinking about a salary change first, the salary hike calculator shows what a raise adds each month.
Frequently asked questions
Why is the real yearly cost higher than my rate?
Because the fee reduces what you receive while the EMI stays the same. The real cost shows the rate on the money that actually reached you.
Is GST on the fee included?
Only if you include it. Enter the fee as a percentage of the loan with GST added, for a truer number.
Does the tool show prepayment penalties?
No. The extra payment box shows the interest you save, but any foreclosure fee your lender charges is not deducted.
Is this tool free?
Yes. It is free, and we ask for your name and WhatsApp number once when you view your result. All other Uncodemy tools then open without the form.