Personal Loan Calculator
Calculate personal loan monthly payments, total interest and repayment cost for any amount, rate and term.
Monthly payment
$424.94
Total payment
$25,496
Total interest
$5,496
Interest share
22%
A fixed-rate personal loan is fully amortized, so each payment covers interest plus a growing share of the principal.
How it works
M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), r = APR ÷ 12, n = term × 12. Total interest = M × n − P.
Example: $10,000 at 11% for 36 months → $327/month, $1,782 total interest.
Last updated: July 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Personal loans are among the most common credit products in India — used for weddings, medical expenses, travel, home renovation and education gaps — and this calculator shows the true cost before you apply. Enter the amount, the rate on your sanction letter and the term to see the monthly payment, total payment and total interest at a glance. Because rates vary widely with your credit profile, checking your CIBIL score and running the numbers at your expected rate helps you budget the EMI before the bank does. The term comparison is the most useful part: a ₹5 lakh loan at 12% over 5 years costs about ₹69,500 more in interest than the same loan over 3 years, which is the real price of a lower monthly payment.
How to Use This Calculator
- Step 1: Enter the loan amount in the loan amount field, for example ₹5,00,000.
- Step 2: Enter the annual interest rate quoted by the bank or NBFC on your sanction letter.
- Step 3: Set the loan term in years — personal loans typically run 1 to 5 years.
- Step 4: Read the monthly payment, total payment and total interest, and note the interest share of the total.
Worked Example
You borrow ₹5,00,000 at 12% a year for 3 years. The calculator returns a monthly payment of about ₹16,607, a total payment of about ₹5,97,900 and total interest of about ₹97,900. Extend the term to 5 years and the EMI falls to about ₹11,122, but interest climbs to about ₹1,67,300 — about ₹69,500 more for the same loan. The trade-off between a low EMI and total interest is the whole point of the exercise.
Tips and Common Mistakes
- •Tip 1: Personal loan rates in India vary widely — typically around 10.5% to 24% a year depending on your credit profile — so check your CIBIL score before applying.
- •Tip 2: Prefer the shortest term you can afford; the interest difference between a 3-year and 5-year term at the same rate is substantial.
- •Tip 3: Many banks charge a foreclosure or part-prepayment fee on personal loans, so factor it in if you plan to close early.
- ✗Mistake 1: Entering the rate as a monthly percentage — personal loan quotes are annual (p.a.) figures.
- ✗Mistake 2: Choosing the longest term just to lower the EMI without checking the total interest, which grows sharply with the term.
Frequently Asked Questions
How do I calculate my personal loan payment?
Enter the loan amount, APR and term. The calculator divides the total into equal monthly payments using the standard amortising formula, so principal and interest are cleared by the end of the term.
What APR should I expect on a personal loan?
Rates vary widely by credit score — typically 6%–36%. Good to excellent credit gets the lowest rates; lower scores see higher APRs. Compare multiple lenders before applying.
Does a longer personal loan term cost more?
Yes. A longer term lowers your monthly payment but you pay interest for more months, so total interest is higher. Enter two terms here to compare the trade-off.
Is this personal loan calculator free to use?
Yes, True Calculator's personal loan calculator is completely free with no sign-up, no app install and no usage limits.
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