What is the Personal Loan?
A personal loan calculator computes the EMI, total interest and total payout for an unsecured personal loan. Personal loans typically run 10–24% p.a. and 1–5 year tenures, making the EMI sensitive to small rate changes.
Formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
- P — Loan amount
- r — Monthly interest rate
- n — Tenure in months
Step-by-step example
Setup: ₹5,00,000 personal loan at 14% p.a. for 3 years.
- r = 0.01167 · n = 36
- EMI ≈ ₹17,089
- Total interest ≈ ₹1,15,200
Answer: EMI ≈ ₹17,089 · Total payout ≈ ₹6,15,200
Frequently asked questions
Are there hidden charges?
Watch for processing fees (1–3%), GST on fees, and foreclosure charges (usually 2–5% of outstanding).
Can I prepay early?
Most lenders allow it after 6–12 EMIs. Foreclosure charges may apply on fixed-rate personal loans.