Must-Know Aspects of EMI and Personal Loan Calculator

Personal Loan Calculator

Personal loans are one of the most significant financial tools for people. Deciding to opt for the best personal loan calls for a great deal of research and calculation. Every time a person takes a personal loan, he has to repay it with interest. You are required to repay the loan in the form of EMI (i.e., Easy or Equated Monthly Installment). 

In this blog, you will get gainful insights on the must-know aspects of the Personal Loan Calculator and EMI.

What are EMI & Factors Influencing it?

Equated Monthly Installment (EMI) is a fixed monthly amount a borrower pays to his lender. Its purpose is to clear away an outstanding debt or loan within a specified tenure. Notably, a borrower pays off both the principal and accrued interest components of a loan by way of EMI.

There are a few crucial factors that influence EMI on a personal loan: 

  • Principal Amount of the Loan: The Principal amount is the sum borrowed by an individual. It is ascertained by the borrower according to his requirement of funds. The greater the principal, the greater the EMI payable.
  • Rate of Interest on the Loan: The lender ascertains a certain rate of interest on the loan payable by the borrower. It may vary from lender to lender. Besides, it is also affected by other factors, such as credit score, eligibility, etc. The greater the interest rate, the greater the EMI payable.
  • Type of Interest Charged: Two types of interests are charged on a loan, namely – Fixed Interest and Floating Interest. The borrower can opt for any type of interest as per his preference. On choosing fixed interest on your loan, the EMI payable remains fixed for the entire loan period. However, if you choose a floating rate of interest on the loan, then the EMI varies with variations in the interest rate.
  • Tenure of the Loan: The Loan Tenure is the stipulated period for which the borrower wants to borrow the money. It can be in months or years. Also, it is decided by the borrower depending upon his purpose of taking the loan. The longer the tenure, the lesser will be the EMI payable.

Calculation of EMI on Personal Loan 

We always recommend people first calculate their EMI payable for any personal loan availed by them via a personal loan calculator. So, they get to know beforehand about the amount of EMI payable each month. It helps to determine whether they are capable of paying this much amount every month or not. Eventually, this helps them to choose the best personal loan for their needs. 

To calculate the EMI manually, you can use the below-mentioned formula:

EMI = [P x r x (1+r)n] / [(1+r)n-1]


P = the principal amount borrowed as a loan.

r = the monthly rate of interest charged on the loan 

n = the tenure of repayment of the loan (in months)

Using a Personal Loan Calculator for EMI

A Personal Loan Calculator is a helpful tool for borrowers. It lets you effortlessly calculate the EMI on different options for personal loans. It is an online tool that ultimately helps you choose the best personal loan.  

You only have to feed the inputs, including the principal amount, rate of interest, and tenure, to use a personal loan calculator.

Here are a few advantages of using a personal loan EMI calculator:

  • It is an entirely free-of-charge automated tool.
  • It helps save your time, money, and efforts as it is readily available for use.
  • It facilitates the comparison of the loan options provided by various lenders.
  • It helps to decide on the most suitable personal loan by facilitating the evaluation in advance.
  • Most advanced personal loan calculators display information as graphs and charts to offer a well-informed & detailed analysis.


A Personal Loan EMI Calculator is an online tool that helps you escape tedious manual EMI calculations. Just tapping on your smartphone screen gives you access to a personal loan calculator. Hence, you can choose the best personal loan without using a physical calculator to calculate the EMIs. Various banks, NBFCs, & other financial institutions offer online loan EMI calculators on their websites. Using them, you can easily calculate your EMIs precisely.

Read Also: Savings Account Options in India

By 12disruptors Admin

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