EMI stands for Equated Monthly Installment. It is the fixed amount you pay every month to repay a loan taken for a home, car, bike, personal expenses, education, or any other purpose. EMI includes two parts: Principal + Interest.
When you take a loan, the lender charges interest on the borrowed amount. EMI helps you repay this amount in easy monthly installments over a fixed tenure.
EMI = P × r × (1 + r)n / [(1 + r)n – 1]
Where:
P = Loan Amount (Principal)
r = Monthly Interest Rate (Annual Rate / 12 / 100)
n = Loan Tenure in Months
Your EMI would be calculated using the above formula, and the calculator instantly shows: