Personal Loan Calculator (EMI, Interest Cost & Payoff)
Calculate monthly EMI payments, total interest drain, and high-interest repayment schedules for unsecured personal loans in India.
Principal ₹5,00,000 at 13.5% for 3 years
*Unsecured loan rates are subject to credit score, employer category, and existing liabilities.
Important Educational Disclaimer for Calculator Results:
Calculations are estimates based on your entered inputs and selected return or inflation assumptions. Results are illustrative, hypothetical, and not guaranteed. Actual market returns, interest rates, tax liabilities, and inflation rates will vary and may materially alter your final outcome. This calculator does not constitute financial, investment, or tax advice.
What does this Personal Loan truly cost you?
Borrowing an unsecured personal loan of ₹5,00,000 at 13.5% interest for 3 years requires a monthly EMI of ₹16,968. Over the 3-year tenure, you will pay ₹1,10,835 in total interest charges to the lender, repaying a total sum of ₹6,10,835.
- Monthly EMI Burden: ₹16,968/month.
- Total Interest Drain: ₹1,10,835 (22% extra on top of your loan!).
- High Cost Warning: Personal loans carry high interest rates (11% to 24% p.a.). Eliminating personal loans should be your highest financial priority before investing in equity mutual funds.
How This Calculator Works
Unsecured personal loans use reducing balance interest calculation. Because rates are steep, increasing monthly payments or clearing the loan early creates massive guaranteed savings.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]Variables in Formula:
Worked Step-by-Step Example
You take a ₹5,00,000 personal loan for home renovation at 13.5% p.a. for 3 years (36 months).
Key takeaway: You repay ₹6,10,859 in total. Prepaying just ₹5,000 extra per month clears the loan 8 months faster and saves over ₹25,000 in interest.
Common Mistakes to Avoid
⚠ Investing in stocks while paying 14%+ on personal loans
Prepaying a 14% personal loan gives an immediate guaranteed, risk-free 14% return. Equity markets cannot guarantee 14% returns.
⚠ Ignoring processing fees and foreclosure charges
Banks charge 1%–3% processing fees upfront plus GST. Check for foreclosure lock-in periods before taking a personal loan.
Frequently Asked Questions
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