Plan your finances by calculating your monthly installments instantly.
Monthly EMI:$0.00
Total Interest Payable:$0.00
Total Payment (Principal + Interest):$0.00
How Does a Personal Loan EMI Calculator Work?
A Personal Loan Equated Monthly Installment (EMI) calculator uses a standard mathematical formula to determine the fixed amount you need to pay your lender every month. This helps borrowers understand their repayment obligations before signing a loan agreement.
The Mathematics Behind Your EMI
The calculator uses the reducing balance method formula:
E = P × r × (1 + r)^n / ((1 + r)^n – 1)
P: Principal loan amount
r: Monthly interest rate (Annual rate / 12 / 100)
n: Number of monthly installments (tenure)
Realistic Example: Borrowing $5,000
If you take a personal loan of $5,000 at an annual interest rate of 12% for a tenure of 12 months:
Monthly Interest Rate: 1% (12/12)
Monthly EMI: $444.24
Total Interest: $330.88
Total Repayment: $5,330.88
Factors That Affect Your Personal Loan EMI
Several variables can shift your monthly payment amount:
Principal Amount: Higher loan amounts result in higher EMIs.
Interest Rate: A higher rate significantly increases the total interest burden.
Loan Tenure: While a longer tenure reduces the monthly EMI, it increases the total interest paid over the life of the loan. Short tenures help you save on interest but require higher monthly cash flow.
Why Use This Calculator?
Using an EMI calculator is essential for financial health. It prevents you from over-leveraging yourself by allowing you to test different "what-if" scenarios. You can adjust the tenure to find a monthly payment that fits comfortably within your budget without compromising your other financial goals.
function calculateEMI() {
var principal = parseFloat(document.getElementById('loan_amount').value);
var annualRate = parseFloat(document.getElementById('interest_rate').value);
var tenureMonths = parseFloat(document.getElementById('loan_tenure').value);
if (isNaN(principal) || isNaN(annualRate) || isNaN(tenureMonths) || principal <= 0 || annualRate <= 0 || tenureMonths <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
var monthlyRate = annualRate / 12 / 100;
// EMI Formula: [P x r x (1+r)^n]/[(1+r)^n-1]
var emi = (principal * monthlyRate * Math.pow(1 + monthlyRate, tenureMonths)) / (Math.pow(1 + monthlyRate, tenureMonths) – 1);
var totalPayment = emi * tenureMonths;
var totalInterest = totalPayment – principal;
// Formatting results
document.getElementById('res_monthly_emi').innerText = "$" + emi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_total_interest').innerText = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_total_payment').innerText = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show result box
document.getElementById('emi_result_box').style.display = 'block';
}