Personal Loan EMI Calculator
EMI, interest and the real cost including processing fees
Your Personal Loan EMI
- Principal₹5,00,000(85%)
- Interest₹89,297(15%)
Year-by-year repayment
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | ₹1,48,785 | ₹47,647 | ₹3,51,215 |
| 2 | ₹1,66,003 | ₹30,430 | ₹1,85,212 |
| 3 | ₹1,85,212 | ₹11,220 | ₹0 |
- 1Enter the loan amountFrom ₹10,000 to ₹50 lakh
- 2Add rate, tenure and feeFrom the lender's offer
- 3See EMI and true costIncluding the processing fee
How is personal loan EMI calculated?
Banks and NBFCs use the reducing-balance EMI formula. The processing fee is cut from the amount you receive, which raises the loan's real cost.
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
APR = the rate at which (P − fee) equals the present value of all EMIs
Why the APR matters
Two loans with the same interest rate can cost different amounts once fees are added. The APR (annual percentage rate) folds the processing fee into one yearly figure, so you can compare offers fairly. Lenders must show it in the key facts statement.
Watch out for flat rates
Some lenders quote a flat rate, charged on the full amount for the whole tenure. A 10% flat rate costs about as much as 17–18% on a reducing balance. Use our Flat vs Reducing Rate Calculator to convert.
Related calculators
- EMI CalculatorKnow your monthly instalment before you borrow
- Flat vs Reducing Rate CalculatorConvert a flat interest rate to its real reducing-balance rate
- Loan Eligibility CalculatorHow much you can borrow on your income
- Credit Card Interest CalculatorThe real cost of paying only the minimum, or converting to EMI
Frequently asked questions
What interest rate do personal loans charge?
Banks typically charge about 10–24% a year depending on your credit score, income and employer; app-based lenders can charge more. A score above 750 usually gets the lowest rates.
Is GST charged on the processing fee?
Yes, 18% GST applies to the processing fee. The calculator adds it, so a 2% fee on ₹5 lakh costs ₹11,800.
Can I prepay a personal loan?
Most lenders allow it after 6–12 EMIs, often with a foreclosure charge of 2–5% on the amount prepaid. Check your agreement before prepaying.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Sources
Last reviewed: October 2026