Personal loan calculator that shows the true cost, not just the EMI
A personal loan offer has three prices: the interest rate in the advert, the fees taken out before the money reaches you, and the charge to close the loan early. This personal loan calculator puts them together. It works out the EMI, then subtracts the processing fee, the 18% GST on that fee, any insurance premium and other charges from the payout, and finds the APR — the single yearly rate that matches the money you actually receive with the EMIs you actually pay.
It also decodes flat-rate quotes, which look about half as expensive as they are, and tests whether foreclosing after a given EMI saves money once the charge is paid. Use it to compare bank, NBFC and app-based offers on equal terms. It runs in your browser; the figures are estimates, not financial advice.
How to use the Personal Loan Calculator
- Enter the Loan amount, Interest rate and Tenure in months, and say whether the rate is quoted on a Reducing balance or Flat.
- Add the Processing fee (as a % or in ₹), the GST on fees, any Insurance premium and other upfront charges.
- Read the EMI, the APR, the money you receive and the total cost of credit.
- Check the Flat rate vs reducing rate table to see the same headline rate both ways.
- Under Close the loan early?, pick fixed or floating, the EMI after which you would close, and the charge.
Personal Loan Calculator features
APR from real cash flows
The internal rate of return of the net payout and the EMIs, shown as an APR and as an effective annual rate.
Flat-rate decoder
Converts any flat quote into the reducing rate with the same EMI, and a reducing rate into its flat equivalent.
Foreclosure check
Outstanding principal, the charge with GST, interest avoided, net saving and the APR if you close early.
Every charge itemised
A bar shows principal, interest, fee, GST, insurance and other charges side by side.
Worked example: ₹5 lakh at 12% for 3 years
The EMI is ₹16,607 and the interest over 36 months is ₹97,858. A 2% processing fee is ₹10,000, plus ₹1,800 GST, so only ₹4,88,200 reaches your account. Matching that payout with 36 EMIs of ₹16,607 gives an APR of 13.67% (14.56% as an effective annual rate), not 12%. A ₹6,000 credit-life premium deducted from the payout raises the APR to 14.54%.
Close the loan after 12 EMIs and ₹3,52,792 of principal is outstanding. A 4% foreclosure charge plus GST is ₹16,652, while the interest you no longer pay is ₹45,779 — a net saving of ₹29,128, even though the APR for the year you held the loan rises to 18.49% because the fee was spread over fewer months.
Flat rate vs reducing rate
A flat rate charges interest on the whole original amount for the whole tenure, even as you repay it. A reducing-balance rate charges interest only on what you still owe. The EMI on a flat ₹1 lakh at 10% for 3 years is ₹3,611 — the same EMI as a 17.92% reducing-balance loan. Equivalent reducing rates:
- The reducing equivalent is roughly 1.65 to 1.85 times the flat rate in this table, and the exact figure depends on the tenure — so convert rather than guess.
- Lenders that split flat-rate EMIs with the Rule of 78 front-load the interest, so the outstanding figure on a foreclosure letter can be higher than the schedule here.
| Flat rate | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| 8% | 14.45% | 14.68% | 14.55% | 14.13% |
| 10% | 17.97% | 18.16% | 17.92% | 17.27% |
| 12% | 21.46% | 21.57% | 21.20% | 20.31% |
| 14% | 24.91% | 24.92% | 24.40% | 23.25% |
Fees, GST and foreclosure rules in India (as of October 2026)
- Processing fees are set by each lender, usually as a percentage of the loan, sometimes with a minimum or a cap. GST at 18% is added to fees and foreclosure charges — not to the loan or the interest.
- Since 1 October 2024 lenders must give a Key Facts Statement with the APR, all fees and the repayment schedule before you sign. Compare its APR with the one here.
- Under the RBI (Pre-payment Charges on Loans) Directions, 2025, floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026 carry no part-payment or foreclosure charge. Most personal loans are fixed-rate, where the lender’s policy applies; the charge must be disclosed upfront and is based on the amount prepaid.
- If the money to close the loan would otherwise earn less than the loan costs, closing usually wins. Comparing debts? Clear a credit card first — see the credit card payoff calculator.
Personal Loan Calculator FAQ
What is the APR on a personal loan?
The annual percentage rate is the yearly cost of the loan including interest and all fees. The personal loan calculator finds the monthly rate at which your net payout equals the present value of your EMIs and multiplies it by 12; the effective annual rate compounds it instead.
How do I convert a flat interest rate to a reducing rate?
Find the EMI under the flat rate — principal × (1 + rate × years) ÷ months — then solve for the reducing-balance rate that gives the same EMI. A flat 10% for 3 years equals 17.92%.
Is GST charged on personal loan EMIs?
No. GST applies at 18% to processing fees, foreclosure and other charges, not to the principal or the interest in your EMI. Work it out with the GST calculator.
Can a lender charge me for closing a personal loan early?
On a fixed-rate personal loan, yes, if the charge is in the sanction letter and Key Facts Statement. On a floating-rate loan to an individual for a non-business purpose sanctioned from 1 January 2026, RBI does not allow any charge.
Why is the money I receive less than the loan amount?
Processing fees, GST, insurance premiums and stamp duty are usually deducted from the disbursal, but you repay the full loan amount with interest. That gap is why the APR is higher than the quoted rate.
Should I take the loan insurance?
Credit-life cover pays off the loan if you die, which protects co-borrowers and family. It is optional; compare the premium with an existing term plan, and include it here to see what it does to the APR.