GUIDESPERSONAL LOANS
Personal Loan EMI & Interest Rate Calculator
6 MIN • 
LAST EDITED BY ATHARVA GUPTE ON JANUARY 20, 2026.
LAST EDITED BY ATHARVA GUPTE ON JANUARY 20, 2026.
GUIDES LAST EDITED BY ATHARVA GUPTE ON JANUARY 20, 2026.
With a personal loan comes your EMI and interest payments. Hence, while taking a personal loan, you must be aware of these additions and apply accordingly. These additions depend on your loan amount, repayment tenure, credit score, etc.
Having an personal loan interest rate calculator can help in you many ways. So, it’s time to learn how to calculate personal loan EMI formula and interest rates.
Personal loans assist in cases of financial crisis or other conditions. Be it any situation, availing of a personal loan can help with money management over time. Often, individuals prefer a personal loan over other types because of its ease of application, minor documentation, and flexibility.
That being said, EMI or Equated Monthly Instalment is a primary feature of a personal loan. Borrowers pay a fixed amount of money each month to repay the entire loan amount with time.
EMI payments are inclusive of both the principal loan amount as well as the interest amount. It is efficiently divided throughout the tenure to ensure systematic and complete repayment of the loan.
Finding out the EMI amount is simple with a personal loan EMI calculator . However, you must know how to calculate the personal loan EMI formula to facilitate better financial management.
To begin with, an EMI calculator helps with calculating your monthly loan payment amount. The sum is based on your loan principal, the duration, and the interest rate. While calculating this can be difficult, a personal loan EMI calculator makes it easy and accurate.
Overall, it is a very quick solution to plan and maintain your flow of money while paying back loans. Moreover, using a personal loan EMI calculator is also very simple. You only need to enter your loan amount, tenure, and interest details, and you can derive your EMI in seconds.
The EMI formula is as follows:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Here, ‘P,’ ‘R,’ and ‘N’ are variables that stand for:
As EMIs are paid monthly, the duration here is calculated in months.
Here’s an example: Person X takes a personal loan of INR 10 lakhs for 2 years with a 15% interest. The EMI will be calculated as follows:
P = 15,00,000
R = 15%
N = 24 months
EMI = [15,00,000 x 15/100/12 x (1+15/100/12)^24] / [(1+15/100/12)^24-1]
Therefore, monthly EMI = INR 72,730
The interest rate on the personal loan is also an essential element when calculating your payments. The interest rate (R) on the personal loan is also calculated per month.
The formula to calculate the interest rate is:
R = Annual interest rate/12/100
Based on the example stated above, the interest rate would be,
R = 15/12/100
R = 0.0125
Using the personal loan calculator, you can easily find the interest rate too. You can get quick and accurate solutions without worrying about the effort. There are other benefits of using a personal loan EMI calculator, too, such as:
To ensure a secure loan procedure, you must know your overall borrowing costs. Using an EMI calculator for a personal loan can help with giving you the exact amounts without falling into complex calculations. Moreover, having an idea of EMI and interest rate formula keeps you aware of your financial flows.
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The formula to calculate your EMI on a personal loan is - EMI = [P x R x (1+R)^N] / [(1+R)^N-1]. Place the variables with your principal amount of 5 lakhs personal loan, the interest rate, and tenure to calculate EMI.
