# Personal Loan EMI Calculator

> Monthly EMI and total interest for a personal loan of up to 7 years.

Interactive calculator: https://www.cashiq.in/tools/personal-loan-emi-calculator
Last updated: 2026-11-10

An EMI calculator works out the fixed monthly instalment that repays a loan with interest over its tenure. A personal loan of ₹5,00,000 at 12% for 3 years costs ₹16,607 a month, and ₹97,858 in total interest.

## How it is calculated

```
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
```

- P is the loan amount.
- r is the monthly interest rate: the annual rate ÷ 12 ÷ 100.
- n is the tenure in months.
- Interest is charged on the reducing balance, so each EMI repays more principal than the one before.

## Worked example

- Inputs: ₹5,00,000 at 12% for 3 years
- Result: EMI ₹16,607 a month, total interest ₹97,858, total payment ₹5,97,858
- Open it: https://www.cashiq.in/tools/personal-loan-emi-calculator?principal=500000&rate=12&years=3

## Use it with your own numbers

Add query parameters to the calculator URL. The page renders the result, a one-sentence summary and a year-by-year table in its HTML.

| Parameter | Meaning | Allowed values |
| --- | --- | --- |
| `principal` | Personal loan amount | 10,000 to 50,00,000 |
| `rate` | Interest rate (% a year) | 1 to 30 |
| `years` | Loan tenure (years) | 1 to 7 |

Example: https://www.cashiq.in/tools/personal-loan-emi-calculator?principal=500000&rate=12&years=3

JSON API: https://www.cashiq.in/api/v1/personal-loan-emi-calculator?principal=500000&rate=12&years=3

## Rules and assumptions

- The rate you are offered depends on the lender, your credit score and income. The default here is only an example.
- Banks cannot charge a prepayment penalty on floating-rate loans taken by individuals for non-business purposes, under RBI rules.
- Personal loans are unsecured, so rates are usually higher than home or car loans, and there is generally no tax benefit.

## Frequently asked questions

### How is personal loan EMI calculated?

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of months.

### Why is most of my early EMI interest?

Interest is charged on the outstanding balance, which is highest at the start. As you repay principal, the interest part of each EMI falls and the principal part rises.

### Does prepaying reduce my interest?

Yes. A prepayment cuts the outstanding balance, so all later interest is charged on a smaller amount. You can usually choose a lower EMI or a shorter tenure.

### Is a longer tenure better?

A longer tenure lowers the EMI but raises the total interest you pay, often by a lot. Compare both in the calculator.

## Sources

- [Reserve Bank of India](https://www.rbi.org.in/)

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Results are estimates for planning, not investment, tax or legal advice. Returns are assumptions, not guarantees. Source: CashIQ, https://www.cashiq.in/tools/personal-loan-emi-calculator