Plan your finances by calculating your monthly installments accurately.
Monthly EMI:
Total Interest Payable:
Upfront Processing Fee:
Total Payment (Principal + Interest):
Understanding Your Personal Loan EMI
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 Calculation Works
The calculation of a personal loan EMI follows a standard mathematical formula: E = P x r x (1+r)^n / ((1+r)^n – 1). In this formula:
P: Principal loan amount (the amount you borrowed).
r: Monthly interest rate (Annual rate divided by 12 months).
n: Number of monthly installments (the loan tenure).
Example Calculation
If you take a personal loan of $10,000 at an annual interest rate of 10% for a tenure of 24 months:
Your Monthly EMI would be approximately $461.45. Over the course of 2 years, you would pay a total interest of $1,074.80, making the total repayment amount $11,074.80.
Factors That Influence Your EMI
Several variables impact how much you pay each month for your loan:
Principal Amount: A higher principal leads to a higher EMI.
Interest Rate: Higher rates increase the cost of borrowing significantly.
Loan Tenure: While a longer tenure reduces the monthly EMI amount, it increases the total interest you pay over the life of the loan.
Credit Score: Lenders often offer lower interest rates to individuals with high credit scores, directly lowering the EMI.
Why Use a Personal Loan EMI Calculator?
Using an automated calculator helps you avoid complex manual math and provides instant results. It allows you to experiment with different loan amounts and tenures to find a repayment schedule that fits comfortably within your monthly budget. It also highlights the "Processing Fee," which is an upfront cost often overlooked by borrowers.
function calculateLoanEMI() {
var p = parseFloat(document.getElementById("loanAmount").value);
var annualRate = parseFloat(document.getElementById("interestRate").value);
var n = parseFloat(document.getElementById("loanTerm").value);
var feePerc = parseFloat(document.getElementById("processingFee").value) || 0;
if (isNaN(p) || isNaN(annualRate) || isNaN(n) || p <= 0 || annualRate <= 0 || n <= 0) {
alert("Please enter valid positive numbers for Loan Amount, Interest Rate, and Tenure.");
return;
}
var r = annualRate / (12 * 100);
// Formula: E = P x r x (1+r)^n / ((1+r)^n – 1)
var emi = p * r * Math.pow(1 + r, n) / (Math.pow(1 + r, n) – 1);
var totalPayment = emi * n;
var totalInterest = totalPayment – p;
var processingFeeAmount = (feePerc / 100) * p;
document.getElementById("monthlyEmi").innerText = "$" + emi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalInterest").innerText = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("feeAmount").innerText = "$" + processingFeeAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalPayment").innerText = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("loanResults").style.display = "block";
}