Personal Loan EMI Calculator
Personal loans are unsecured, so rates are higher than for home or car loans and lenders charge a processing fee that is usually taken out of the amount you receive. The advertised interest rate therefore understates the real cost. This calculator shows your EMI and total interest, then adds the processing fee (with 18% GST if you choose) to find the cash you actually receive and the effective annual rate — the rate at which your EMIs would repay that smaller sum. Use it to compare a low-rate, high-fee offer with a higher-rate, low-fee one.
How to use the personal loan emi calculator
- Enter the loan amount, interest rate and tenure.
- Enter the processing fee percentage and choose whether GST is added on it.
- Read the EMI, the amount you receive and the effective rate.
- Compare offers on effective rate and total repayment, not only on the headline rate.
Formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1). Fee = P × fee% × (1 + 18% GST, if applicable). Amount received = P − fee. The effective rate is the monthly rate at which n EMIs equal the amount received, multiplied by 12.
Worked examples
₹5 lakh at 12% for 36 months
The EMI is ₹16,607.15 and total interest ₹97,857.58. The 2% fee with GST is ₹11,800.00, so you receive ₹4,88,200.00 and the effective rate is 13.67%.
Fee versus rate
A 12.5% loan with no fee has an effective rate of 12.5%, so it is cheaper than the 12% loan with a 2% fee plus GST (13.67%) over 36 months.
Longer tenure, more interest
Stretching to 60 months lowers the EMI to ₹11,122.22 but raises total interest to ₹1,67,333.43.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- ₹3 lakh at 13% for 24 months with a 2% fee plus 18% GST. What is the effective rate?
Show answer
Monthly EMI: ₹14,262.55 · Total interest payable: ₹42,301.12 · Effective annual cost including the fee (APR): 15.43%
Common mistakes to avoid
- Comparing only the interest rates. Fees change the real cost.
- Borrowing the “net” amount you need without allowing for the fee that is deducted.
- Using a personal loan to repay another loan without checking the savings after fees.
- Taking a long tenure by default.
- Missing hidden charges such as insurance bundled with the loan or foreclosure fees.
Frequently asked questions
What is the processing fee on a personal loan?
A one-time charge, usually 1–3% of the loan, deducted from the amount disbursed. GST at 18% is typically added to it.
Why is the effective rate higher than the quoted rate?
Because you pay interest on the full loan but receive less after fees. The effective rate measures the cost against the cash you actually get.
How is a personal loan EMI calculated?
With the standard EMI formula on the full loan amount, monthly rate and number of months.
Can I prepay a personal loan?
Often yes, sometimes with a foreclosure charge. Ask your lender before signing.
What affects my personal loan rate?
Credit score, income, employer, existing debt and the lender. Compare several offers.
Is this financial advice?
No. It is an educational estimate.
Sources and further reading
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.