Formula for EMI Calculation

The formula used to calculate the equated monthly installment (EMI) that you must pay to the lender for your loan is as follows:

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

Where:

Personal Loan Equated Monthly Installment (EMI)

Suppose you have entered the following details into the personal loan EMI calculator:

Loan amount Loan tenure Interest rate Processing fee Loan EMI
Rs.10 lakh 5 years 10.99% 2% Rs.21,737

Total Payable Amount

Total interest due Rs.3,04,246
Processing fee Rs.20,000
Loan quantum Rs.10 lakh
Total amount to be paid Rs.13,24,246

Breakdown of EMI for a Personal Loan of Rs.10 Lakh

Year Principal (in Rs.) Interest (in Rs.) Total of Principal and Interest (in Rs.) Outstanding Loan Balance (in Rs.)
2020 90,510 61,652 1,52,162 9,09,490
2021 1,69,254 91,597 2,60,851 7,40,236
2022 1,88,821 72,029 2,60,850 5,51,416
2023 2,10,649 50,199 2,60,848 3,40,766
2024 2,35,002 25,846 2,60,848 1,05,764
2025 1,05,764 2,923 1,08,687 0

*The calculation above is based on the assumption that no prepayments are made, and the loan was obtained in June 2020.

Home Loan EMI

Suppose you have entered the following details into the home loan EMI calculator:

Loan amount Loan tenure Interest rate Processing fee Loan EMI
Rs.40 lakh 10 years 9.75% 0.5% Rs.52,308

Total Payable Amount

Total interest due Rs.22,76,972
Processing fee Rs.20,000
Loan quantum Rs.40 lakh
Total amount to be paid Rs.62,96,972

Breakdown of EMI for a Home Loan of Rs.40 Lakh

Year Principal (in Rs.) Interest (in Rs.) Total of Principal and Interest (in Rs.) Outstanding Loan Balance (in Rs.)
2020 1,42,083 2,24,074 3,66,157 38,57,917
2021 2,63,101 3,64,597 6,27,698 35,94,816
2022 2,89,931 3,37,766 6,27,697 33,04,884
2023 3,19,496 3,08,200 6,27,696 29,85,386
2024 3,52,080 2,75,617 6,27,697 26,33,306
2025 3,87,983 2,39,713 6,27,696 22,45,322
2026 4,27,550 2,00,147 6,27,697 18,17,773
2027 4,71,150 1,56,546 6,27,696 13,46,623
2028 5,19,197 1,08,499 6,27,696 8,27,427
2029 5,72,141 55,555 6,27,696 2,55,284
2030 2,55,284 6,257 2,61,541 0

*The calculation above is based on the assumption that no prepayments are being made, and the loan was taken in June 2020.

Car Loan EMI 

Suppose you have input the following details into the car loan EMI calculator:

Loan amount Loan tenure Interest rate Processing fee Loan EMI
Rs.8 lakh 5 years 9.12% 2.5% Rs.16,653

Total Payable Amount

Total interest due Rs.1,99,199
Processing fee Rs.20,000
Loan quantum Rs.8 lakh
Total amount to be paid Rs.10,19,199

Breakdown of EMI for a Home Loan of Rs.18 Lakh

Year Principal Interest Total of Principal and Interest Outstanding Loan Balance
2020 75,722 40,852 1,16,574 7,24,278
2021 1,39,524 60,317 1,99,841 5,84,756
2022 1,52,793 47,049 1,99,842 4,31,964
2023 1,67,324 32,516 1,99,840 2,64,640
2024 1,83,238 16,602 1,99,840 81,401
2025 81,402 1,866 83,268 0

*The calculation above is based on the assumption that no prepayments are being made, and the loan was taken in June 2020.

How the CredBharat Personal/Home/Car Loan EMI Calculator Works?

The CredBharat Equated Monthly Installment (EMI) Calculator is user-friendly and straightforward to use. It requires some basic information about the loan you intend to avail. To use the calculator, follow these steps:

The CredBharat EMI Calculator will then process the information and display your 'Monthly Loan EMI' amount. Additionally, it will present a detailed amortization table for the loan, including the actual loan amount, total interest due, and processing fee calculations.

Impact of Loan Prepayment on Your Monthly Installments

If you happen to come into additional funds, you might choose to make a loan prepayment, which involves paying an extra amount towards the principal loan amount. In such cases, you can calculate your revised EMIs by accounting for the prepayment amount. This calculation will help you determine the amount of interest savings achieved by reducing the outstanding principal balance, as interest is calculated based on the principal outstanding.

Depending on the prepayment amount and the loan provider's terms and conditions, you may be subject to an additional fee or charge for making the prepayment.

Factors Influencing Your Total Due Amount

When considering a loan for your financial needs, it's essential to calculate the equated monthly installments (EMIs) that align with your repayment capacity. To determine this, you should take into account several factors that can be adjusted to suit your loan requirements and repayment capabilities:

Carefully considering these factors allows you to tailor your loan to your specific financial situation and repayment capacity.

Personal Loan Emi Calculator FAQ's

EMI stands for Equated Monthly Installment, representing a fixed monthly payment made by a borrower to a lender on a set date each month.
To calculate the lowest EMI, consider your desired loan amount, the lowest interest rate offered by the bank, and the maximum tenure. Enter these details during calculation to determine the lowest applicable EMI. Keep in mind that long-term loans may result in smaller monthly payments but higher overall interest costs, while short-term loans have the opposite effect.
Yes, you can prepay or foreclose your personal loan. However, different banks have varying prepayment conditions. For instance, HDFC allows prepayment after completing 12 EMIs, and a prepayment charge may apply. Review your lender’s terms and conditions before opting for prepayment or foreclosure.
It is essential to pay your EMIs on time. Most banks charge a 2% penalty fee for missed payments. Additionally, missed payments can negatively impact your credit score and future loan eligibility. Use a personal loan EMI calculator to plan your EMI payments in advance to avoid financial stress.
EMI deduction from your debit card is straightforward and does not require a security deposit. You can establish a standing instruction and provide your debit card details. The EMI amount will be automatically deducted from your account on the due date.
Knowing your EMIs in advance offers several advantages. It enables better financial planning, ensures timely EMI payments, which can improve your credit score, and allows you to avoid missed payments, potentially reducing future interest rates.
You can calculate EMI in Excel using the PMT formula. For example, for a loan of Rs. 5 lakh at a 12% interest rate over 48 months, the formula would be (500000 x 48 x 0.01), where 0.01 represents the monthly interest rate (12% divided by 12).
The EMI amount for a Rs. 3 lakh loan depends on factors such as tenure and interest rate, varying from bank to bank. For instance, if you avail a loan of Rs. 3 lakh for a one-year tenure at a 10% interest rate, the EMI payable will be Rs. 26,375.
The EMI for a Rs. 5 lakh loan varies between banks and is determined by the tenure and interest rate. For example, with a one-year tenure and a 10% interest rate, the EMI payable would be Rs. 43,958.
For a loan of Rs. 20 lakh with a five-year tenure and an interest rate of around 10%, the EMI would be Rs. 42,494. Keep in mind that EMI amounts may differ between banks, so it's important to compare various personal loan schemes to find the most suitable one for you.

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