I Instructions: Use this calculator to find the EMI / loan installment value by entering the figures in the column principal loan amount, interest rate %, loan term in a year, and Number of payments in a year. Please input the desired values in the form below:
What is EMI (Equated Monthly Installment)
Equated Monthly Installment or EMI Calculator is a fixed number of loan or borrowing payments. This helps the lender to understand how much money is in terms of principal and interest payout each month.
In short, it is an equally monthly installment that the borrower must pay to the lender to satisfy the loan amount.
Some of the examples, where users need to calculate the EMI are loans from commercial banks, cars, homes, or machinery leasing.
EMI Formula
EMI = P x R x (1+R)^N / [(1+R)^N-1]
Where;
P = principal loan amount borrowed
R = interest rate per month
N = Tenure period of the loan
Key information rule
- Fixed payment in terms of principal and interest amount is being paid by the borrower to the lender.
- It is used to measure both principal and interest value of the loan against each month over the entire period of the loan.
- It helps the borrowers to retain the minimum amount in hand each month to pay off their liabilities.
- A lower interest rate is more beneficial to the borrower as compared to a higher interest rate.