Personal Loan EMI Calculator

Planning and scheduling your loan repayment in advance is an important step towards repaying your personal loan. It helps you avoid any financial stress and manage your monthly budget better. To schedule your loan repayment, you need to know your EMI amount, which is the fixed monthly payment you must pay to your lender until your personal loan is fully repaid. But how do you calculate your EMI amount for a personal loan? This is where an online personal loan EMI calculator comes in handy.

A personal loan EMI calculator is a tool that helps you calculate your EMI amount for any personal loan in a matter of seconds, regardless of the loan's end use. It lets you quickly compare different personal loan options and plan your monthly budget accordingly.

The online personal loan calculator can help you determine your monthly loan payments (EMI) using basic details like loan amount, interest rate, and tenure. 

Knowing your monthly payment will assist you in planning your budget. Not only that, but if you think the EMI is out of your monthly budget, then you can make adjustments to the loan amount, interest rate, or tenure that will change the monthly payments. As the online calculator is free to use, you can make multiple calculations. 

By using the personal loan calculator online, you can also understand the total interest and total payable amount for the entire tenure. The online calculator saves time without any manual calculations, which can be error-prone.

In order to calculate the EMI, the online personal Loan EMI calculator uses a simple formula:

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

where,
P = Principal amount
R = Interest rate per month (divide the annual interest rate by 12)
N = Number of monthly instalments (basically loan tenure in months)
Let's understand this by using the personal loan EMI calculator formula. If you take a personal loan of ₹1,00,000 from a bank at an interest of 12% per annum for 5 years. Here is how the EMI would be calculated:
P = ₹1,00,000
R = (12/100)/12 = 0.01
N = 5*12 = 60
Therefore,
EMI = 1,00,000*0.01(1+0.01)^60 / (1+0.01)^60-1
Or, EMI = ₹2,224.44/month

The EMI on a personal loan is a mix of two important factors - principal and interest. At the beginning of the loan tenure, the interest payment can be approximately the same as the principal repayment. As months go by, the interest amount reduces and the principal amount increases. 

Here’s an amortisation schedule for our above example to show how it works. 

You can use Angel One’s personal loan EMI calculator by entering the following inputs:

1. Loan amount: Amount of money (or the principal) that you want to borrow or have already borrowed.
2. Interest rate: Interest rate charged by the lender/financial institution for the loan.
3. Loan tenure: The duration of the loan in months or years.

Immediately to your right, you will be able to view the EMI along with the principal, the total interest to be paid, and the total amount to be repaid.

Suppose you are looking for the right loan to take in order to solve any cash flow issues. In that case, creating a list of all the different types of loans you can take and calculating the EMI amounts and durations for each of them can help you analyse the loan market and choose the best loan possible. The Angel One personal loan EMI calculator will help you quickly form this database in a matter of minutes by giving you the EMIs for various loan amounts, interest rates and durations.

Let us understand this with an example. Suppose Rajesh is looking to take a personal loan of ₹5,00,000 for his wedding expenses at an interest rate of 10% per annum for the duration of 4 years. Enter these values on the Angel One Personal loan EMI calculator. The calculator returns the EMI of ₹12,681 per month.

As seen above, changes in the principal, interest rate, and loan tenure affect the EMI amount. These factors, in turn, are affected by the following variables -

1. Marginal Cost of Funds Based Lending Rate (MCLR)- It is a benchmark lending rate which is set as the minimum rate at which banks can give out loans to borrowers. Therefore, all loans given by banks are partly derived from the MCLR.
2. Credit score- You may have a good credit score based on your record of properly managing personal finances and paying certain bills on time. In that case, you may be charged less interest by banks.
3. Income level - A higher income level can help you get a larger loan. This increases your EMIs.

The Personal Loan EMI calculator helps you with numerous benefits, which are listed below:

1. Correct EMI Calculation: An accurate EMI calculation is the main purpose of a Personal Loan EMI calculator. The calculator will show you the actual EMI amount that you will have to pay each month once you select the loan amount, interest rate, and tenure.
2. Comparison of Multiple Offers: You can compare loan offers from several lenders using a personal loan EMI calculator. You may compare the EMI amounts and select the loan that is best for you by inputting the loan amount, interest rate, and tenure of various loan offers.
3. Effective Planning of Finances: You may more effectively arrange your finances using a Personal Loan EMI calculator. The EMI payment you will need to make each month to repay the loan will be apparent to you. This might help you plan your spending appropriately and make sure you have enough money to pay your other debts.