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Personal Loan

How to Calculate Your Personal Loan EMI Using Excel

Key Takeaways

  • Key Takeaway ImageThe formula to calculate personal loan EMI using Excel is: “=PMT(B2/12,B3,B1)” where B2 is the Excel cell for the interest rate, B3 represents the tenure, and B1 is the loan amount.
  • Key Takeaway ImageThe PMT function in Excel includes the parameters for the interest rate, number of payments (loan tenure), present value (loan amount), future value (usually set to 0), and payment type (end or beginning of the period).
  • Key Takeaway ImageThe simplified formula that Excel uses to calculate personal loan EMI is = PMT(RATE,NPER,PV,FV,TYPE).
11 Sep 2025 by IDFC FIRST Bank
Calculate Personal Loan’s EMI Using Excel
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If you have applied for a personal loan before, you must already realise the value of a personal loan EMI calculator. These are free, online tools that help you plan the repayment of your personal loan. Calculating your personal loan’s EMI using Excel can help you better understand how personal loan EMI calculators work.

When it comes to applying for a personal loan, it is crucial to first understand your repayment options. This is where a personal loan EMI calculator comes in handy, providing an estimate of your monthly payments and allowing you to plan your finances effectively. You can also choose to calculate your EMIs using Excel, which can give you a better understanding of how such calculators work. 

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The EMI calculation formula
 

Here is the formula that you can use to calculate the EMI of a loan:

EMI = (P * R/12) * ((1+R/12)^N) / [(1+R/12)^(N-1)]

Where P is the original loan amount, R is the annual interest rate, and N is the number of monthly instalments or the loan tenure.

How to calculate personal loan EMIs using Microsoft Excel?
 

To calculate personal loan EMIs using Excel, you must input the loan amount, annual interest rate on personal loan and loan tenure into separate cells. You must then use the formula “=PMT(B2/12,B3,B1)” in the EMI cell where B2 is the interest rate, B3 is the tenure, and B1 is the loan amount. For instance, if you wish to take a FIRSTmoney smart personal loan worth ₹6 lakh with an annual interest rate of 9.99% and a 24-month tenure, simply enter those values into the designated cells and apply the formula to calculate your EMI using Excel. 

You must fix your financial objectives and decide on an ideal loan amount before calculating your loan’s EMIs using a personal loan EMI calculator.

Manual EMI calculation using the formula in Excel for EMI calculations

Microsoft Excel simplifies the EMI calculation formula in the following way –

= PMT(RATE,NPER,PV,FV,TYPE)

The Excel formula depends on several factors:

  • The “Rate” function represents the interest rate applicable to the loan. It determines the EMI when using MS Excel for calculation.
  • “NPER” stands for the total number of monthly instalments or the loan tenure. It is an important factor in the EMI calculation formula which directly impacts the duration for which you will make repayments.
  • The present value represents the principal amount (original loan amount).
  • The future value (FV) is an optional parameter which is typically set to 0. It adds to the flexibility of the calculation process.
  • The “type” parameter determines when the loan amount is due. It is generally set to 0 for end-of-period payments and 1 for payments due at the beginning of the month.

To calculate your personal loan’s EMI using a personal loan EMI calculator, you must use the formula “=PMT(B2/12,B3,B1)” in the EMI cell where B2 is the interest rate, B3 is the tenure, and B1 is the loan amount. You can use IDFC FIRST Bank’s personal loan EMI calculator to get an estimate of your loan’s monthly instalments, based on which you can make changes to the loan amount and tenure as per your finances.

Conclusion

Calculating your personal loan EMI in Excel is both straightforward and efficient. By utilizing the PMT function and inputting the loan amount, interest rate, and tenure, you can instantly determine a monthly repayment amount that fits your financial plan. This simple method not only saves time but also empowers you with greater clarity and control over your loan obligations, helping you make more informed borrowing decisions.

Frequently Asked Questions

How can I calculate my personal loan EMI in Excel?

Create three input cells for principal, annual interest rate, and tenure in months. In a fourth cell, use Excel’s PMT function to compute the monthly EMI. The syntax is =PMT(rate_per_month, number_of_months, present_value). Convert the annual rate to a monthly rate by dividing by 12, and enter principal as a negative value so the result appears positive. Example: =PMT(0.12/12, 60, -500000) returns the monthly instalment for a five year loan calculation. Alternatively, you can use the personal loan EMI calculator to calculate your EMI with ease.

What formula should I use for personal loan EMI calculation?

Use the PMT function with a monthly rate. The general structure is =PMT(annual_rate/12, tenure_months, -principal). For instance, if the annual rate is 12 percent, tenure is 60 months, and principal is 5,00,000, the formula becomes =PMT(0.12/12, 60, -500000). The negative sign makes the EMI value display as a positive cash outflow. You can reference input cells instead of typing numbers directly to simplify tweaks. This keeps scenarios linked cleanly together.

Is Excel calculation accurate for personal loans?

Excel can closely match lender EMI figures when the inputs mirror the lender’s method. Ensure the rate uses the same compounding frequency, generally monthly for personal loans. Confirm whether fees are added to principal, collected upfront, or ignored for EMI. Check if interest is calculated on a reducing balance with fixed monthly instalments. Replicate prepayment rules separately. Small rounding differences may appear, so match decimal precision with your lender’s disclosure.

Can I compare different personal loan EMI scenarios in Excel?

Yes. Build a simple model with input cells for principal, annual rate, and tenure in months. Reference those inputs inside the PMT formula. Use Data Table to compare many outcomes at once. For a one variable table, vary the rate or tenure. For a two variable table, vary both together. You can also try Goal Seek to target a desired EMI or total interest by adjusting rate or tenure values.

Can I generate a personal loan amortisation schedule in Excel?

Yes. Create columns for month number, opening balance, EMI, interest, principal, and closing balance. Use IPMT for interest and PPMT for principal in each row, referencing the monthly rate and remaining period. Opening balance for the first row equals the loan amount. Closing balance equals opening minus principal. Copy formulas down for the full tenure. Add running totals for interest and principal. Format numbers neatly to review payments over time. Alternatively, you can view the amortisation schedule by using the personal loan EMI calculator.

How can I customise the EMI calculation for different interest types?

Match the compounding and period to the product. For monthly compounding, divide the annual nominal rate by 12 and use PMT. For quarterly compounding, convert to a quarterly rate and set periods in quarters. For daily compounding, convert to an effective monthly rate using =(1+annual_rate/365)^(days_in_month)-1. For floating rates, build a row wise schedule and change the rate in the month it resets, then recalculate EMI or principal split each time.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.

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