Estimate your monthly payments and total interest instantly.
Your Estimated Monthly EMI
$0.00
Total Interest Payable$0.00
Total Payment (Principal + Int)$0.00
Processing Fee Amount$0.00
Total Cost of Loan$0.00
Understanding Personal Loan EMI Calculations
A Personal Loan EMI (Equated Monthly Installment) is a fixed amount of money that a borrower pays to a lender at a specific date each calendar month. EMIs are applied to both interest and principal every month, so that over a specified number of years, the loan is paid off in full.
How the EMI Formula Works
Our calculator uses the standard mathematical formula for EMI calculation:
E = P × r × (1 + r)^n / ((1 + r)^n – 1)
P: Principal loan amount
r: Monthly interest rate (Annual rate / 12 / 100)
n: Loan tenure in months
Example Calculation
If you borrow $10,000 at an annual interest rate of 10% for a period of 2 years (24 months):
Several factors play a crucial role in determining your monthly outflow:
Principal Amount: The higher the loan amount, the higher the EMI.
Interest Rate: Higher rates lead to higher EMIs and significantly more total interest paid over time.
Tenure: A longer tenure reduces your monthly EMI but increases the total interest you pay to the bank. Conversely, a shorter tenure increases the EMI but saves money on interest.
Processing Fees: Many lenders charge a one-time fee (usually 1-3%) which is often deducted from the loan disbursement amount.
Tips to Reduce Your Loan Burden
To keep your personal loan affordable, consider making a larger down payment if applicable, or choosing a shorter tenure if your monthly budget allows. Additionally, always check for "prepayment" clauses that allow you to pay off the loan early without heavy penalties.
function calculateEMI() {
var principal = parseFloat(document.getElementById("loanAmount").value);
var annualRate = parseFloat(document.getElementById("interestRate").value);
var years = parseFloat(document.getElementById("loanTenure").value);
var feePercent = parseFloat(document.getElementById("processingFee").value);
if (isNaN(principal) || isNaN(annualRate) || isNaN(years) || principal <= 0 || annualRate <= 0 || years <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
var monthlyRate = annualRate / 12 / 100;
var months = years * 12;
// EMI Formula: [P x R x (1+R)^N]/[(1+R)^N-1]
var emi = (principal * monthlyRate * Math.pow(1 + monthlyRate, months)) / (Math.pow(1 + monthlyRate, months) – 1);
var totalPayment = emi * months;
var totalInterest = totalPayment – principal;
var feeAmount = (feePercent / 100) * principal;
var totalCost = totalInterest + feeAmount;
// Display Results
document.getElementById("resultBox").style.display = "block";
document.getElementById("monthlyEMI").innerText = "$" + emi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalInterest").innerText = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalPayment").innerText = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("feeAmount").innerText = "$" + feeAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalCost").innerText = "$" + (totalInterest + principal + feeAmount).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Smooth scroll to result
document.getElementById("resultBox").scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}