How to Calculate Personal Loan EMI in Excel Using Formula & Function?
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors

Whether facing a medical emergency, planning a home renovation, or pursuing any financial goal, personal loans are a versatile tool to cater to these conditions. When we speak about loans, the equated monthly installments (EMIs) come to mind. It is a crucial factor in determining the overall cost of the loan.

Let us learn more about how simplifying the EMI calculation process using Excel, a universally accessible spreadsheet program, enables you to plan your finances precisely. Join us on this journey to harness the power of Excel and gain better control over your financial well-being with a Kotak Personal Loan.

Understanding the Basics

Before delving into how to calculate EMI in Excel, let us understand the fundamental concepts. An Equated Monthly Instalment (EMI) comprises two essential components: the principal amount and the interest. It is a fixed monthly payment that streamlines your loan budget. For these Excel-based calculations, you will need key information at your fingertips, including the loan amount, interest rate, and loan tenure. With these basics in place, you will be well-prepared to explore how Excel's PMT function can simplify your EMI calculations, ensuring financial clarity in your Kotak Personal Loan journey.

Formula to Calculate EMIs using MS Excel

There is an easy way to calculate the EMI by using the following formula in MS Excel:

EMI = (P × r × (1 + r)n)/((1 + r)n - 1).


P (Principal) = The amount of the loan,

R (Rate of interest) = Annual interest rate/12,

N (the number of payments) = Payments/months

Excel further simplifies the process. Input the following in a selected cell:


The Excel formula relies on various factors, and here is a comprehensive analysis of each one:


The RATE refers to the interest rate associated with a loan. This is the key parameter when calculating the equated monthly installment for a loan, and the function of this figure is to assist Excel users seeking the most precise computation possible when faced with the task of grappling with loan calculations of their own.


NPER is the total number of payment periods. This is equivalent to the number of months that it takes to pay off a given loan. Given a 60 month loan there would be 60 in this space as an example.


PV is the present value. This is the total amount of money to be financed and this is another very important part of the EMI. Excel formula. This serves to make sure the EMI is calculated accurately.


The FV is the “future value.” This is an optional part of an Excel formula and it represents a cash balance after a final payment is made, providing you with a bit of leeway to bring your own numbers to bear in the calculation process. This of course helps maintain accuracy.


The “TYPE” is the “type” of a loan; whether it’s due at the beginning of the month or the end. A “0” will set the EMI due at the end of a period while a “1” will schedule it for the beginning of a period. Understandably this works for just about all kinds of users and can be invaluable for ensuring the most precise EMI calculation possible for their respective preferences.

How to calculate personal loan EMI using the Excel PMT function:

Calculating your EMI using Excel's PMT function is a simple and easy process that streamlines complex calculations, ensuring you have full control over your financial journey. You can effortlessly determine your monthly EMI for your Kotak Personal Loan with the following steps:

Suppose you have taken a personal loan of Rs. 10,00,000 at an annual interest rate of 10.99%, and the loan tenure is 3 years (36 months). To calculate your EMI, open an Excel sheet.

  • Step 1: In an empty cell, type "=PMT(").
  • Step 2: Next, you will input the rate. As the interest rate is annual, divide it by 12 to get the monthly rate. In this case, 10.99% / 12 = 0.91%, or 0.0091 as a decimal. Type it after "PMT" as "0.0091".
  • Step 3: Add a comma and enter the total number of periods of the loan tenure. In our case, it's 36 months. Type "36".
  • Step 4: Another comma, and now you'll input the present value, which is your loan amount. In this case, it is Rs. 10,00,000. Type "1000000".
  • Step 5: Close the bracket and press "Enter."
  • Result: Excel will calculate your monthly EMI, approximately Rs. 32,733.

Practical Tips and Dos and Don'ts for Calculating Personal Loan EMIs with Excel:

Practical Tips:

  • Accuracy Matters: Ensure that you input the correct values for the interest rate, loan amount, and tenure. Small errors can lead to significant discrepancies in your EMI calculation.
  • Stay Updated: If you are making additional payments or facing interest rate changes during your loan tenure, remember to recalculate your EMI to stay on top of your financial plan.
  • Utilize Excel Functions: Apart from PMT, Excel offers various other financial functions, such as FV (future value) and PV (present value), which can be handy for different financial calculations.
  • Amortization Schedule: Create an amortisation schedule in Excel to understand how each EMI payment impacts your principal and interest components. This can be a valuable tool for tracking your loan progress.
  • Emergency Fund: Always maintain an emergency fund to cover unexpected expenses without affecting your loan EMI. It's a financial safety net that ensures you stay on track with your payments.


  • Double-check inputs: Verify the values you input into the PMT function. Incorrect data can lead to inaccurate EMI calculations.
  • Frequent Recalculation: Recalculate your EMI whenever there is a change in interest rates, tenure, or additional payments. This keeps your financial plan up to date.
  • Financial Discipline: Stay committed to your monthly EMI payments to avoid penalties and maintain a good credit history.
  • Amortisation Understanding: Gain a deep understanding of your loan's amortisation schedule to track the reduction in principal and interest over time.


  • Overlook the fine print: Do not ignore the terms and conditions of your loan agreement. It is essential to be aware of any prepayment penalties or hidden charges.
  • Inaccurate Information: Avoid estimating your loan amount, interest rate, or tenure. Use accurate, up-to-date figures for precise calculations.
  • Skipping EMI Payments: Never skip EMI payments, as it can lead to penalties, increased interest, and a negative impact on your credit score.
  • Ignoring Changes: Do not disregard interest rate changes or alter the loan tenure. Adjust your EMI accordingly to stay in control of your finances.

Checking EMI on EMI Calculator by Kotak Mahindra Bank

Using formulas and EMI charts in Excel might not be an easy method for many people. But don’t worry, you have an easier option too. Kotak Personal Loan EMI Calculator and Personal Loan Eligibility Calculator allow you to evaluate your eligibility, fees, charges and monthly EMI with just a few clicks and entries.

Wrapping up:

Using Excel to calculate your loan EMIs offers an excellent means of financial planning. By adhering to the dos and avoiding the don'ts, you can ensure accurate and efficient EMI calculations. Excel's PMT function is a valuable tool, empowering you to make informed decisions and stay on course with your Kotak Personal Loan journey.

Latest Comments

Leave a Comment

200 Characters

Read Next

What is Personal Banking?Types, Benefits & Tips


Tips to Improve Your CIBIL Score


Debt-to-Income Ratio: Achieving Financial Balance with Personal Loan

Load More

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.