Personal Loan EMI Calculator
EMI, total interest and the balance falling year by year on an unsecured personal loan.
- Principal
- ₹5.00L
- Total interest
- ₹1.06L
Year by year3 yrs
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Y1 | ₹1.46L | ₹56.52K | ₹3.54L |
| Y2 | ₹1.66L | ₹36.42K | ₹1.89L |
| Y3 | ₹1.89L | ₹13.54K | ₹0 |
Reducing-balance EMI at a constant 13% annual rate — interest is charged on the outstanding balance, which the chart shows declining to zero over the tenure.
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Independent · No commissions · No fund-house data — how the numbers are computed
How it works
A personal loan is unsecured, so the rate is far higher than on a home or car loan — commonly 11% to 24% depending on your credit score, income and employer — and the tenure is shorter, usually one to seven years. Both push the EMI up sharply for the same borrowed amount.
The EMI itself is the standard reducing-balance calculation: interest is charged each month on what is still outstanding, so the interest share of every payment falls as the balance does. The year-by-year table below shows that split, which is worth looking at before deciding whether the loan is worth taking at all.
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r the monthly rate (annual rate / 12 / 100) and n the number of months.Total interest is the EMI times the number of months, less the principal. On a short, high-rate personal loan that total is a large fraction of what you borrowed, which is the number worth checking before signing.
Frequently asked questions
Why is a personal loan EMI so much higher than a home loan EMI?
Two reasons compound. The rate is roughly five to fifteen percentage points higher because the loan is unsecured — the lender has no asset to fall back on. And the tenure is far shorter, typically three to five years against twenty for a home loan, so the same principal is repaid in a fifth of the time. The tenure usually matters more to the EMI than the rate does.
Can I prepay a personal loan without a charge?
If it is a floating-rate loan taken by an individual for a non-business purpose, and it was sanctioned or renewed on or after 1 January 2026, then yes — the RBI's 2025 directions removed prepayment charges for that case entirely, with no lock-in and no minimum. Most personal loans are fixed-rate, though, and a fixed-rate loan may still carry a charge, so read the sanction letter.
Does a personal loan get any tax deduction?
Not by default. Interest on a personal loan is deductible only when the borrowed money is demonstrably used for a purpose that carries its own relief — buying or building a house, funding a business, or acquiring an asset — and you would need to evidence that use. A personal loan used for a wedding, a holiday or consolidating other debt gets nothing.