Personal Loan EMI Calculator

Many lenders levy a fee on early closure of a fixed-rate personal loan, and some impose a lock-in period before any prepayment is allowed. These charges are not modelled by this calculator — check your loan agreement, then compare the fee against the interest saving the calculator shows to decide whether prepaying is worthwhile.

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of monthly instalments. This is the reducing-balance method lenders use: interest each month is charged only on the balance still outstanding, so the interest portion of your EMI shrinks and the principal portion grows as the loan runs down.

Reducing the tenure almost always saves more money, because you stop paying interest sooner. Reducing the EMI keeps you paying for the original term and only lowers the monthly outgo. Choose tenure reduction if your cash flow is comfortable and you want the maximum interest saving; choose EMI reduction if your monthly budget is tight and breathing room matters more than the total saved. The calculator shows both outcomes side by side.

Yes, substantially. Interest is charged on the outstanding balance, so a rupee repaid in year 2 avoids interest for the remaining 18 years, while the same rupee in year 15 avoids only five years of it. On a typical 20-year home loan, a lump sum in year 2 can save several times what the identical amount saves in year 12.

Yes. The calculator applies your processing fee as a percentage of the sanctioned amount, adds the tax rate you enter on that fee, and reports a Total Cost of Loan that includes both. This matters when comparing lenders: a bank offering a rate 0.1% lower but charging double the processing fee can easily be the more expensive option on a short tenure.

Yes. The comparison tool takes up to four lenders with independent amounts, rates, tenures, processing fees and part-payment plans, then ranks them by total outflow rather than by headline rate — which is the only comparison that reflects fees honestly. You can prefill the rates from our bank interest rates table.