Personal Loan

How to Use an EMI Calculator for Personal Loans?


A personal loan EMI calculator helps you figure out the amount you need to pay each month as your EMI (equated monthly instalment). A personal loan can help you get your financial house in order, whether that means paying off debt, saving up for an upcoming purchase, or just getting a little extra cash flow. By knowing this, you can make sure that you have enough money on hand to pay your EMIs on their due dates and not be late with any of the instalments. The way your personal loan EMI calculator works, however, depends on whether it’s an online or offline one; these two categories have different methods of operation, which we will cover in detail in this article. Let’s get started!

What is an EMI calculator?

Equated Monthly Instalment (EMI) is a certain amount that is to be paid off monthly until the loan is paid in full. It consists of the interest on the loan, as well as a share of the loan’s initial principal that must be paid back. It is calculated by multiplying the principal amount by the interest rate and dividing by the tenure. 


  • EMI = Equated Monthly Instalment
  • r:  Rate of interest
  • P: principal amount 
  • n: Tenure

For example, if a loan amount is Rs. 10,00,000 at an interest rate of 10.5% for 10 years of a long period. So if the instalments are Rs. 13,493 each year, then the total amount payable is Rs. The EMI is used to determine how much of your monthly income will go towards paying off the debt. 

The easiest way to calculate your EMI is to use an EMI calculator. An EMI calculator helps you get a final number and displays the results in a split second with a payment schedule and total payment breakdown. 

How can you use a Personal loan EMI calculator?

Use the EMI Calculator to find out how much a personal loan would cost you in monthly installments.

Step 1 Enter the amount you want to borrow, the interest rate (compounded per year) and the number of years you plan on taking to repay your debt. 

Step 2: Next, enter your age (in years) and your credit score

Step 3: Finally, click on Calculate. 

The results will show how much you need to pay every month as well as what the total interest will be in terms of money or percentage. During the initial loan period, there is a large portion dedicated to interest. Over time, the payment schedule also shows an intermediate outstanding balance for each year, which will carry over to the following year. You can use this information to decide if a personal loan is worth it for you. 

Floating Rate EMI Calculation

You should calculate floating rate EMIs based on two opposite scenarios, such as deflationary and inflationary ones. If you control the loan amount and loan tenure, you can calculate floating rate EMIs. Your loan amount and repayment term will be determined by you. But the rate of interest is determined by the banks and NBFCs based on RBI regulations. To calculate your personal loan EMI under these two scenarios, you should consider two extremes: an increase in interest rates and a decrease in interest rates. 

For example: 

Inflationary: If the interest rate increases by 1%, you also need to pay 1% more interest on your loan amount as per the floating rate rule.

Deflationary: Here is the opposite scenario of inflationary. If the interest rate decreases by 1%, you also need to pay 1% less interest.

The Floating Rate EMI Calculator is a tool created to help you figure out how much in monthly installments you will need to pay to repay your loan. 

Why do you need an EMI calculator?

Personal loans are a good way to borrow money if you don’t qualify for a regular bank loan or if you need to borrow more than banks usually offer. There are a few reasons to use an EMI calculator.

#1: Budget planning: One of the biggest benefits of an EMI calculator is that it helps borrowers change their spending habits so that they can afford their new payments. Being debt-free requires good budgeting, a diligent savings plan, and spending wisely. Living a financially-constrained lifestyle every month can become too difficult if you don’t prepare beforehand.

#2 Easy to use: A major advantage of the personal loan EMI calculator is its ease of use. It is intuitive and guided at every stage of the process. It will make your life easier by taking care of all the hard math calculations involved in figuring out your monthly payment.

#3 Accurate result: One of the many perks of using the calculator on the personal loan EMI website is the accuracy of the calculations. When using manual calculation methods, there is always a possibility of human error. But it can calculate your EMI payable amount in just a second.

#4 Comparison: The personal loan EMI calculator allows you to compare interest rates and principal amounts for different loan amounts and tenures without affecting your credit score. So, you can get a better deal from banks. 


In conclusion, if you’re looking at getting a personal loan, it’s important to understand all your EMIs on a personal loan. The personal loan EMI calculator ensures that you know how much you’ll need to pay every month and how much interest you’ll accrue over time, so that you can decide if this loan is right for you in the first place. Your lender, like Piramal Finance, will provide you with a personal loan EMI calculator that details the specifics of your loan terms. You should use this tool to determine whether or not your loan payments are feasible given your current income and financial situation.