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Interest Rate Calculator

Published on Feb 1, 2023Updated on Jul 17, 2023

Interest Rate Calculator

An interest rate calculator, also known as EMI calculator, is a tool that can be used to calculate the amount of interest that will be charged on a loan over a certain period of time. It can also be used to calculate the monthly payments (EMI) on a loan, given the loan amount, interest rate, and loan tenure. The calculator typically requires the user to input information such as the loan amount, interest rate, and loan term, and it will then use this information to calculate the total interest charged over the loan term, as well as the monthly payments. Interest rate calculators are commonly used by individuals and businesses to evaluate loan options and plan for loan repayment.

This article discusses the use of a personal loan interest rate calculator and its benefits in estimating EMI (Equated Monthly Instalments) obligations. The article also explains how it can be used to evaluate loan options and plan for loan repayment.

Steps To Use Interest Rate Calculator

With SMFG India Credit's online personal loan EMI calculator, budgeting for your loan is made much easier. The personal loan EMI is computed depending on the loan amount, payback period, and interest rate.

Follow these simple steps to calculate your personal loan EMIs:

Step 1: By adjusting the loan amount slider in the relevant field, enter the principal loan amount (up to INR 25 lakhs).

Step 2: Subsequently, set the repayment tenure, which has a maximum duration of 5 years or 60 months.

Step 3: Lastly, choose the quoted interest rate for personal loan.

After entering all the required information, select “Calculate” to obtain your monthly instalments for the duration of your loan at the specified principal amount, interest rate, and term. This can help you stay on top of your current financial situation while saving you time and eliminating any possible errors.

For example,
If you are looking for a loan of INR 5 lakhs, with a repayment tenure of 4 years (or 48 months) at an interest rate of 14.60% per annum, your monthly installments would amount to INR 13,814.

Formula For Interest Calculation 

You can determine the interest rate and total amount repayable in EMIs using a single formula. That is –

E = P * r * (1+r)^n / ((1+r)^n-1) 

The following are represented in the equation:

E = EMI repayable
P = Principal loan amount
R/r = Rate of interest applicable
N/n = Tenure

Consider the previous example to understand how the loan EMI calculation works:

Principal loan amount (P) = INR 5,00,000
Repayment tenure (N) = 4 years (or 48 months)
Rate of interest  = 12% per annum

E = 500000 *14.60* (1+12)^48 / ((1+12)^48-1)

EMI = INR 13,814

Factors That Can Affect Your Personal Loan EMI

  1. Your Credit Score - One should not undervalue the benefits of having a good credit score, particularly when it comes to EMIs. There is a good probability that you will be approved for a personal loan with lower interest rates if your credit score is high (750 or higher). Other factors such as income, employment history, and debt-to-income ratio also play a role in determining loan approval and terms.
  2. Your Monthly Income - Monthly income is important for lenders to assess a borrower's ability to repay the loan, but having a high income alone may not be sufficient to qualify for a loan or secure a low interest rate. Other factors such as credit score and debt-to-income ratio are also considered.
  3. Loan Size And Repayment Tenure - A larger loan will result in a larger EMI payment. In contrast, the longer the repayment term, the smaller the EMI that must be paid. Although you might be tempted to choose a longer payback period, doing so will undoubtedly result in greater interest payments over time and a higher ultimate repayment amount. It is important to consider that while a shorter repayment term may result in lower interest payments, it also means that the borrower will have to make larger monthly payments, which may be difficult to afford.


The personal loan EMI calculator from SMFG India Credit spares you the hassles and risks of performing manual calculations. You can calculate the exact amount of your monthly installments by inputting a few details about your personal loan, such as the principal loan amount, repayment tenure, and the rate of interest. Calculate your personal loan EMIs as soon as possible before applying for a personal loan to plan your finances accordingly.

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