Personal loan planning
Personal Loan EMI Calculator.
Estimate your monthly personal loan installment, see the full amortization schedule, and find out how even a modest prepayment can cut down the interest on India's highest-rate common retail loan.
- Principal amount
- ₹5,00,000
- Total interest
- ₹1,43,872
- Total amount
- ₹6,43,872
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹1,01,898 | ₹59,070 | ₹3,98,102 |
| 2 | ₹1,15,962 | ₹45,006 | ₹2,82,139 |
| 3 | ₹1,31,970 | ₹28,998 | ₹1,50,170 |
| 4 | ₹1,50,169 | ₹10,784 | ₹0 |
Why personal loan EMIs run higher
Personal loans are unsecured — there's no property or gold backing the debt — so lenders price in that extra risk with rates well above home or car loans, and tenures are capped much shorter (typically 1-5 years). That combination makes the EMI a bigger share of your monthly outgo than a home loan of the same amount, which is exactly why comparing rates and considering prepayment matters more here than on any other loan type.
Frequently asked questions
How is EMI calculated for a home or personal loan?
EMI (Equated Monthly Installment) is calculated using the formula EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months. Each EMI is split into a principal component and an interest component, and this split changes every month as the outstanding balance falls.
Why is more of my early EMI going toward interest?
Interest is charged on the outstanding loan balance, which is highest at the start of the loan. So early EMIs are interest-heavy and later EMIs are principal-heavy, even though the EMI amount itself stays the same throughout the tenure.
What is loan prepayment and how does it save money?
Prepayment means paying an extra amount toward your loan principal, over and above your regular EMI. Because interest is calculated on the outstanding balance, every rupee of prepayment reduces the principal on which future interest is charged — which lowers your total interest cost and can shorten your loan tenure.
Should I reduce my EMI or reduce my tenure after prepaying?
Reducing the tenure (keeping the EMI the same) saves more total interest, because the loan closes faster and less interest accrues overall. Reducing the EMI (keeping the tenure the same) lowers your monthly outflow, which helps cash flow but saves less interest in total. Choose based on whether you need the money freed up now or want to minimize total cost.