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How to Calculate Personal Loan Repayments?

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Created on
March 23, 2023


What’s Inside

Personal loans are unsecured credit instruments with no end-use restrictions. While you can use these loans to fund a foreign trip or clear your medical bills, they come with a higher interest rate; thus, budgeting your EMIs beforehand is crucial. Personal loan repayment calculators help you do just that. These free digital tools use your principal sum, tenure, and interest rate to compute your EMIs.

Calculating Personal Loan Repayments: Easy or Challenging?

To see what you're monthly EMIs will look like, you can use the following mathematical formula:

  EMI = [P x R x (1+R) ^N] / [(1+R) ^ N-1]

  Here, 'P' is the principal sum, 'R' is the interest rate, and 'N' is the tenure.

Calculating your monthly EMI burdens manually can take some time and result in errors. You can avoid this hassle by using an online personal loan calculator. Personal loan interest calculators offer fast, efficient, and accurate results, helping you plan your repayment strategy well ahead of time. You can run different combinations of the principal sum, interest rate, and tenure until you reach a manageable EMI amount.

Your personal loan EMIs include both the principal borrowed amount and the interest due on this amount. At the beginning of your repayment tenure, the interest component of the loan forms a significant chunk of your EMIs. As you keep clearing EMIs, you are left paying off the principal sum. Some personal loan EMI calculators can also help you check what part of your monthly EMIs goes towards clearing interest on the loan and what portion goes towards the principal sum.

Steps to Use a Personal Loan Calculator

Here's an easy guide to using personal loan repayment calculators online:

Step 1: Enter your principal loan amount.

Step 2: Input the applicable interest rate.

Step 3: Select the appropriate loan tenure.

Step 4: Press 'Calculate' to review your monthly EMI, total loan amount, and total interest payable on the same.

If you're looking for a simple EMI calculation tool, there's no better option than Fi's personal loan EMI calculator. You can directly input the amounts in each field or use the slider to adjust the amounts. This intuitive EMI calculator will display fresh results with the new EMI amounts as soon as the input values change.

Budgeting your Personal Loan Repayments

While personal loans can help you meet several emergency expenses, it's important to ensure you don't default on the loan. Properly repaying your personal loan can boost your credit profile and make you eligible for better lending terms in the future. Capping your monthly EMIs to no more than 50% of your monthly earnings can help.

Get access to fast and easy loans that arrive straight into your account. Fi Money makes pre-approved personal loans available to users with good credit scores – completely paperless and at great interest rates so you stay in control of all the details. Plus, you can set up automatic payments to avoid late fees on EMIs and our partner bank offers loan amounts up to ₹5 lakhs!

You can use the Fi Money personal loan EMI calculator to ensure this limit is maintained. You can review your payable EMIs in seconds, adjusting the loan amount and your budget accordingly.

Frequently Asked Questions

How to calculate a loan repayment schedule?

You can calculate your loan repayments using an online personal loan repayment calculator. Also known as EMI calculators, these digital tools take your principal amount, loan tenure, and interest rate details to ascertain the payable EMI amount.

What is the loan payment formula?

Loan EMIs are calculated using the following formula:

EMI = [P x R x (1+R) ^N] / [(1+R) ^ N-1]

Where P is the principal amount, R is the interest rate, and N is the loan tenure.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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