How to Calculate EMI ?
To compute Equated Monthly Installment (EMI), employ the formula: EMI = [P * r * (1 + r)^n] / [(1 + r)^n – 1]. Here, P denotes the loan amount, r represents the monthly interest rate (annual rate divided by 12 and converted to a decimal), and n is the loan tenure in months. This formula facilitates the systematic repayment of a loan over time.
Example:
Loan amount ((P)): ₹15,00,000 Annual interest rate ((r)): 8% Loan tenure ((n)): 15 years (180 months) -Using the formula, we can calculate the monthly EMI: EMI = ₹15,00,000 * 0.008 * (1 + 0.008)^180 / ((1 + 0.008)^180 - 1) = ₹13,982. You’ll repay ₹13,982 monthly for 180 months, resulting in a total repayment of ₹25,16,760, including ₹10,16,760 as interest.
EMI Calculator
Effortlessly estimate your monthly loan payments (EMI) with our free calculator! Plan for your dream car, home, or any big purchase. Compare loan options and make informed financial decisions.
An EMI Calculator (Equated Monthly Installment) is a financial tool that computes the fixed monthly repayment amount on a loan, incorporating principal and interest. It helps borrowers plan and manage their finances by providing insights into loan repayment schedules.
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