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Personal loan EMI calculator

Your EMI, and what the loan really costs once the processing fee and GST are added.

Reducing-balance rate from the loan offer

Processing fee
Processing fee as
Part-prepayment (optional)

Your loan

Monthly EMI
₹16,607
Total interest
₹97,858
Processing fee + 18% GST
₹11,800
Total cost of the loan
₹1,09,658
Effective annual cost
13.67%
Money in hand
₹4,88,200
You pay back in 3 yr
₹6,09,658

Total cost = interest + processing fee + GST. Effective annual cost is the yearly rate you really pay on the money in hand, the way lenders work out the APR in a Key Fact Statement.

Same loan, different tenures

EMI and total cost of a ₹5,00,000 loan at 12% for 12 to 60 months
TenureEMITotal interestTotal cost (incl. fee + GST)Effective annual cost
12 months₹44,424₹33,093₹44,89316.56%
24 months₹23,537₹64,882₹76,68214.42%
36 months (yours)₹16,607₹97,858₹1,09,65813.67%
48 months₹13,167₹1,32,012₹1,43,81213.29%
60 months₹11,122₹1,67,333₹1,79,13313.06%

A longer tenure lowers the EMI but raises the total interest. A fixed fee costs more per year on a short loan.

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How the calculator works

  • Interest is on the reducing balance with monthly rests, the way banks and NBFCs quote personal loans.
  • The processing fee and its GST are taken from the loan amount, so the money in hand is lower than the loan.
  • Effective annual cost = 12 × the monthly rate at which your EMIs repay the money in hand.
  • Prepayment charges, insurance, stamp duty and late fees aren't included. Figures are estimates; your lender's Key Fact Statement is final.

Questions people ask

How is a personal loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the yearly rate ÷ 12 ÷ 100, and n is the number of months. This is the reducing-balance method: each EMI pays the month's interest on what you still owe, and the rest goes to the principal.

What is the effective annual cost?

It's the yearly rate you really pay once the processing fee and GST are counted. The fee is taken out of the loan, so you get less in hand but repay EMIs on the full amount. We solve for the rate at which your EMIs equal the money in hand, the same idea as the APR lenders show in the Key Fact Statement.

Is GST charged on the processing fee?

Yes. GST at 18% is charged on the processing fee and other loan charges, not on the interest. The calculator adds it to the total cost; change the GST field if your lender's sanction letter shows otherwise.

Should I prepay or reduce my tenure?

Prepaying early in the loan saves the most, because that's when most of each EMI is interest. In our example, ₹1,00,000 prepaid after the 12th EMI on a ₹5,00,000 loan at 12% for 36 months saves about ₹22,944 in interest if you keep the EMI. Check your lender's part-prepayment charges first.

Is a longer tenure better?

A longer tenure lowers the EMI but you pay interest for more months, so the total interest goes up. Use the tenure table to see the trade-off for your loan, and pick the shortest tenure whose EMI fits comfortably in your budget.

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