Personal Loan EMI Calculator

Personal Loan EMI Calculation Example Table & Summary

Instead of just saying, why don’t we show you how our EMI Calculation works? Here’s an example.

In this example, we’ll check the repayment schedule and loan summary for the below parameters.

• Loan amount: Rs. 100000
• Tenure: 5 years
• Interest rate: 10%

Repayment / Amortization Schedule

Personal Loan EMI Summary

Elements of a repayment table

A repayment table or an amortization table is a tabular representation detailing the amount you need to pay the lender. Below are the elements that will be present in a repayment table.

1. Principal

   This portion of the monthly payment will go toward the loan principal. Your principal amount will keep increasing each month as your loan matures.

2. Interest

   This portion of the monthly payment will go toward the interest. Your interest amount will keep decreasing each month as your loan matures.

3. Total Payment

   The sum of principal and interest paid. This is the total amount you will be paying by the end of your loan tenure.

4. Loan balance

   Your loan balance at the end of a given period is the remaining amount owed to the bank. This amount corresponds to the principal amount.

What do you get from a Personal Loan EMI Calculator?

• EMI: Equated Monthly Installment is the amount you must pay the lender monthly. Your EMI will depend on the loan amount, tenure, and rate of interest.
• Breakdown of the total amount payable: With our EMI Calculator, you can get a breakdown of the amount you need to pay. You can understand how much you pay goes into principal, interest, and processing fees.

Benefits of using a personal loan EMI calculator

An EMI Calculator can help you learn the EMI you must pay monthly. But other than that, what benefits does it hold? Read below.

1. Saves time

   You don’t need to do the math manually. Our EMI calculator will break down all the elements of your payment and show you the EMI amount payable.

2. Accuracy

   Our EMI calculator is 100% accurate and gives you the exact EMI you need to pay. It is also easy to use.

3. Compare and choose loan tenures

   You can change the loan tenures for your loan amount and choose a tenure that is suitable for your financial situation.

4. Check your repayment schedule

   Get a complete breakdown of your repayment schedule and understand how much you’ll pay as principal and how much goes into your interest.

Features of our Personal Loan EMI Calculator

Graphical representation

Our EMI calculator will give you a pie chart representation of the EMI you pay. This can help you get a clear idea of the principal amount and interest you will be paying in your monthly EMI.

Repayable table

The repayment table or repayment schedule gives you details of your loan repayment. This can help you understand how much you have to pay monthly and plan your expenses accordingly.

Formula Used for Personal Loan EMI Calculation

Want to know how our EMI calculator calculates your EMI? Here’s the formula.

E = [P×R×(1+R)^N]/[(1+R)^N-1]

In this formula,

• “E” is your EMI
• “P” is the principal or loan amount
• “R” is your interest rate per month (you can divide your annual interest rate by 12 to get your monthly interest rate)
• “N” is the loan tenure in months or the number of monthly installments you will be paying.

Factors that affect personal loan EMI

1. Loan amount

   The higher your loan amount, the higher the EMI. Changing the loan tenure or interest rate can alter your EMI.

2. Loan tenure

   Extending your loan tenure can decrease the EMI you need to pay monthly. But this can lead to higher interest, so check carefully before deciding on your tenure.

3. Rate of interest

   The higher your interest rate, the higher your EMI will be.

   Tip:A high credit score can lower your interest rate. So, ensure you have a high credit score while applying for a personal loan.

What happens if you fail to pay your EMI?

Ensure you pay EMI every month without fail. Missing to pay your EMI may lead to extra charges you might have to pay above the EMI amount.

1. Penal interest charges

   These are overdue interest charges that are levied on your overdue EMIS until you repay the amount.

2. Cheque/NACH/bounce charges

   These charges are applied when the bank account used for making EMI payments has insufficient balance or is closed.