Personal Loan EMI Calculator

You need to enter inputs in 3 fields in the personal loan EMI calculator to quickly calculate the instalment amount. These are:

• Principal amount - It is the amount you borrow from the loan provider, which can range from ₹500 to ₹50 Lakhs
• Interest rate - It is the borrowing charges the lender levies and must be entered on a per-annum basis
• Tenure - The period over which you repay the loan, usually ranging up to 96 months

Once you enter this information, you will immediately get the EMI amount. Additionally, you also get total interest charges and aggregate repayment costs.

Here are some advantages of using the personal loan EMI calculator on Bajaj Markets:

• Real-time Comparison

Enter the required loan amount in the calculator to see which lenders have loan offers that suit your needs. You can find options available on Bajaj Markets. Compare the EMIs and total repayment costs to identify the offer that best fits your requirements.

• Amortisation Schedule

Check how the EMIs gradually contribute to the repayment of your personal loan. Use this information to plan your prepayments, foreclosure, and balance transfers.  

• Accurate Calculations

This tool calculates EMIs using a specific algorithm, helping to avoid common errors often encountered with manual calculations.

• Time-saving

The tedious time time-consuming task of manually calculating the instalments is completed instantly, within seconds, with this calculator

• Free Calculations

You can check various combinations of loan terms and compare the results for free with the personal loan EMI calculator on Bajaj Markets

• Easy to Use

Its unique interface and simple data representation make it easy to use and understand the EMI and amortisation details

• Convenient & Accessible

Gain access to this calculator via the official Bajaj Markets website or app and get started anytime, anywhere

The personal loan EMI is calculated with the help of the simple formula:

EMI = P x R x (1+R)^N / [(1+R)^N-1] 

Here,

• EMI = Equated Monthly Instalment
• P = Principal Loan Amount
• R = Interest Rate
• N = Loan Tenure

Let’s understand with an example. 

Assume that you took a loan of ₹1,00,000 at an interest rate of 9.99% p.a. The tenure of the loan is set at 12 months. In this case:

• P = ₹1,00,000

• R = 9.99% p.a.

• N = 12 months

Since the interest rate is on a per annum basis, let’s first convert it to a per-month basis. Also, let’s convert it from a percentage to a numeric value. For this, the following formula is used:

Monthly Interest Rate = [(Annual Interest Rate / 12) / 100]

Monthly Interest Rate = [(9.99 / 12) / 100] = 0.008325

Next, let’s substitute the values into the formula.

EMI = {P x R x (1 + R)^N / [(1 + R)^N - 1]}

EMI = {100000 x 0.008325 x (1 + 0.008325)^12 / [(1 + 0.008325)^12 - 1]}

Now, let’s simplify and solve this

EMI = {100000 x 0.008325 x 1.104604 / [1.104604 - 1]}

EMI = {832.5 x 1.104604 / 0.104604}

On solving, we get,

EMI = ₹8791.10

Manually calculating the personal loan EMI can be tedious and time-consuming. Additionally, it is prone to errors, which may impact your financial planning. Thus, using a personal loan EMI calculator may be much more efficient.

Understanding your EMI (Equated Monthly Instalment) is crucial before taking a loan. Below is an example for a loan of ₹5,00,000 at 18% annual interest, across different tenures.

 

Key Considerations

• EMI decreases as tenure increases, making monthly payments more affordable.
• Total interest cost rises with longer tenure, increasing overall repayment.
• Shorter tenure translates to higher EMI but lower total interest, saving money in the long run.
• Longer tenure leads to lower EMI but higher total interest, suitable for those prioritising cash flow.

An amortisation schedule helps you understand how your loan is repaid over time. It breaks down each year’s payment into interest and principal components, showing how your outstanding balance reduces annually. This transparency allows you to plan prepayments and manage finances effectively.

Consider the below example:

Amortisation Table for a 5-Year Tenure (₹5,00,000 at 18% p.a.)

Key Insights

• EMI remains constant throughout the tenure at ₹12,696.71.
• Interest component decreases each year, while principal repayment increases.
• By the end of Year 5, the Outstanding Balance becomes zero, completing the loan repayment.
• Longer tenure means lower EMI, but higher total interest cost compared to shorter tenures.

The personal loan EMI calculator helps you assess and manage your probable instalments, eliminating the scope for any EMI burden. So, it is essential to use the calculator efficiently and make the most of it. Here are some tips you should consider:

• Cross Check the Details Entered

Ensure that the loan amount, interest rate, and tenure you enter are as per your requirement to avoid any errors in the calculation

• Compare Different Scenarios

Try various combinations of loan terms and compare the EMIs for different options. This allows you to find and choose a loan that best matches your needs and preferences.

• Factor in All Costs

Aside from the EMI calculations, consider the processing fee, prepayment charges, etc. when assessing the loan’s total cost

• Test Different Tenures

When planning to get a loan, use the calculator to check the impact of tenure on the EMIs and total loan costs

• Assess Affordability

When planning to get a personal loan, check whether the EMIs fit within your monthly budget with the help of this tool

• Check the Amortisation Schedule

Download and analyse the amortisation schedule to check the breakdown of each EMI of your loan. This can be helpful when planning prepayments and foreclosure as demonstrated earlier.

• Re-calculate Regularly

Accommodate the changes in your financial situation by refinancing or restructuring your loan. Regularly re-calculate the EMIs of your personal loan to determine the ideal time to opt for such strategic moves.

Term	Definition
Principal Amount	The amount borrowed from the lender on which the interest is calculated
Interest Rate	The fee charged on a loan for borrowing the money. Usually expressed on a percentage of the principal amount.
Tenure	The time over which a loan agreement is effective. It starts from the date the loan is disbursed and ends when the loan is repaid.
Equated Monthly Instalment (EMI)	A fixed payment made to the lender at a specified date each calendar month. It gradually repays the loan amount and interest charges of the loan.
Amortisation Schedule	A table that provides a detailed breakdown of interest and principal repayment components of each EMI
Prepayment	Refers to when a borrower pays off a part of the principal amount before it is due
Foreclosure	Refers to when the borrower pays the entire outstanding amount and closes the loan before the end of the set tenure
Total Repayment Cost	The overall amount a borrower will pay over the life of the loan. This is inclusive of the principal amount, interest charges, and any other fees. It is the full cost of the loan.
Floating Interest Rate	A type of loan interest rate that fluctuates over time based on a benchmark or index rate. These change periodically, affecting the borrower’s EMI and total interest payable.
Moratorium Period	A period during the loan tenure where the borrower need not pay any EMIs. Interest may continue to accrue during this period. It is often given in case the borrower is facing monetary difficulties.