What is Personal Loan EMI?

EMIs in personal loans are Equated Monthly Instalments. It is effectively the monthly payable amount on your loan till the end of the tenure.

Important Terms to Calculate EMI

EMI calculation is directly based on the following three factors or variables:

Loan Amount: This is the amount that you have borrowed as a loan.

Interest Rate: This defines as the percentage of a loan that is charged to the borrower by the bank or lender. This is expressed in numbers as an annual percentage of the outstanding amount of loan.

Tenure: This is basically the loan term or duration expressed in number of years.

Personal Loan EMI Calculator in Excel

In MS Excel, EMI is calculated by the function PMT. This function in Excel makes use of the same three variables as defined above with slightly different notations. These variables include RATE, NPER & PV. The formula that you’d need to input in Excel would be =PMT(rate, nper, PV)

Rate is the monthly rate of interest, NPER is the number of periods, and PV is the present value of the loan amount.

Let us understand this with an example. Suppose Rohan takes a personal loan of INR 5 Lakhs at an interest rate of 12% per annum to be paid back in EMIs of 5 years.

In this case, the PV would be 5 Lakhs, the monthly RATE would be 12%/12 (months) = 0.01, and the NPER would be 5*12 (months) = 60 months.

So, the formula that you will input in Excel would be =PMT(0.01, 60, 500000) = INR 11,122.22

The result will appear in red and negative suggesting the total outflow for the borrower.

Calculating Personal Loan EMI Manually

For calculating EMI on personal loan manually, you will need to input the formula

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

Here P is the Principal Value or the Loan Amount, R is the Rate of Interest per month, and N is the Tenure or the Term Period.

Personal Loan EMI Calculator Online

While you can surely calculate the EMIs on personal loan manually and using Excel, there is an even simpler way to do it using the online EMI calculator by PaySense. This would help you calculate the amount you need to pay every month in order to fully repay the borrowed loan amount within the pre-decided term duration. With this online calculator, you can input the amount of loan you are looking for and then analyse the options available based on the monthly EMI amount that would be comfortable for you to pay. Using our app and web platforms, you can apply for lucrative personal loans online of up to INR 2 Lakhs within a few minutes from the comfort of your home or office. In just three easy steps, your loan would be sanctioned and disbursed within a few hours right into your bank account. With instant customer support and no hidden fees, PaySense is your best option for easy, instant, and hassle-free personal loans.