Personal Loan EMI Calculator

Calculating the instalments using the Personal Loan EMI calculator on Bajaj Markets allows you to efficiently manage your finances. It enables you to assess the possible monthly payments, helping you understand whether the loan fits your budget. Meanwhile, checking the EMIs and amortisation schedule regularly after taking the loan helps you manage your loan better and strategically plan for prepayments and balance transfers.

 

These calculations can be done quite easily with our personal loan EMI calculator. It helps you make tedious calculations within seconds using simple details like the loan amount, interest rate, and tenure. You can also make instant comparisons between loan offers from over 20 personal loan providers on Bajaj Markets. Furthermore, you can gain deeper insights into your loan instalments with the free amortisation schedule, which is provided with each calculation. 

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. You can also download the complete amortisation schedule to check the breakdown of the EMI and how the loan is gradually repaid as the tenure progresses.

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 is 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.

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.

The calculation results are based on the values you enter in the calculator. Your EMI amount (including the actual interest amount charged) will depend on the prevailing rates. The results are neither certified nor guaranteed. The repayment schedule presented is for illustration purposes. Confirm the values with your lender prior to applying for the personal loan.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.