EMI Calculator
Understanding EMI
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
The Formula
The EMI is calculated using the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
- P = The principal loan amount.
- R = The monthly rate of interest (annual rate / 12 / 100).
- N = The total number of monthly installments (years x 12).