Taking out a personal loan is often necessary to help finance major purchases or expenses when we don't have the full amount in savings.

But before signing on the dotted line, it's wise to have a clear picture of what the monthly payments—known as an EMI or Equated Monthly Installment—will amount to over the loan repayment period.

That's where our ICICI personal loan EMI calculator comes in handy! By simply inputting the loan amount, interest rate, and tenure, our calculator does the math for you and provides you with your estimated EMI amount.

Knowing your EMI in advance helps you pick loan terms that align with your budget and gives you the confidence to manage the regular installments.

Our ICICI Bank personal loan EMI calculator allows you to estimate your monthly loan repayment amount using the formula easily:

EMI = (P × R × (1+r) ^n)/((1+r) ^n-1)

Where:

P is the loan amount taken

R is the annual interest rate

n is the tenure of the loan in months

r is the monthly interest rate calculated by R/12

For example, if you take a personal loan of ₹5,00,000 from ICICI at an interest rate of 16% for a tenure of 4 years (48 months), the monthly EMI can be calculated as:

P = ₹5,00,000

R = 16% = 0.16

n = 48 months

r = R/12 = 0.16/12 = 0.0133

Plugging this into the formula:

EMI = (500000 x 0.16 x (1+0.0133) ^ 48) / ((1+0.0133) ^ 48 - 1)

= ₹12,054

So, your monthly EMI on this loan from ICICI would be ₹12,054.

Our EMI calculator is a valuable financial planning tool. By playing with the inputs for loan amount, interest rate and tenure, you can determine an optimal loan configuration that fits your budget and financial goals.

The EMI is calculated using the following formula:

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

This formula considers the loan amount, interest rate, and tenure to calculate the fixed monthly payment you must make to repay the loan.

Here is the breakdown of the formula:

Therefore, the formula equates the total interest outflow to equal monthly installments.

Let's take an example to see how the formula works to calculate the EMI and repayment schedule:

Loan Amount (P): ₹5,00,000

Interest Rate (R): 10% p.a. (0.83% per month)

Tenure (N): 60 months

Plugging this into the formula:

EMI = [500000 x 0.83% x (1+0.83%)^60]/[(1+0.83%)^60-1]

= ₹10,827

So, for a ₹5 lakh loan at 10% interest for five years, the EMI comes out to ₹10,827.

A personal loan can be a great way to cover big financial needs. But it comes with the commitment to pay it back over time. If something unexpected happens during this period, it could put your family's finances in a tough spot.

That's where term insurance steps in. It's like a safety net for your family, ensuring they're financially secure if anything unforeseen happens. It may not be the most pleasant thing to think about, but having that protection can give you some peace of mind.

At ACKO, we're here to simplify your search for comprehensive insurance solutions. Leveraging technology, we make navigating auto, health, and life insurance straightforward and transparent. With strong investor support and partnerships in the auto and lending sectors, we request you to explore our website's Resources or reach out for personalised advice.