What is EMI?
EMI stands for Equated Monthly Installment, which is a fixed amount of money that you pay to your lender each month until you repay the entire loan amount. It includes both the principal and interest components of the loan.
Formula for EMI Calculation
The formula for calculating EMI involves three variables: Loan Amount, Interest Rate and Loan Tenure. The formula is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P = Loan Amount
- R = Interest Rate Per Month (i.e., Annual Interest Rate Divided by 12)
- N = Loan Tenure in months
How to use Online EMI Calculator?
- The first step is to enter the loan amount that you want to borrow. You can enter any amount between Rs. 1,000 and Rs. 10,00,000.
- The second step is to enter the interest rate that you will be charged on the loan. You can enter any interest rate between 1%
- The third step is to enter the loan tenure in months. You can enter any tenure between 1 month and 120 months.
- Once you have entered all the required details, click on the "Calculate" button to get the EMI amount.
- Once you click on the "Calculate" button, you will be able to view the EMI calculation along with the loan amount, interest rate, and loan tenure.
Advantages of Online EMI Calculator
- Online EMI Calculator uses the correct formula to calculate your EMI payments, ensuring that the results are accurate.
- Online EMI Calculator is very easy to use. You just need to enter a few details, and you will get the EMI amount within seconds.
- Using Online EMI Calculator saves a lot of time. You don't need to manually calculate the EMI payments, which can be a time-consuming process.
- Online EMI Calculator helps you plan your finances better by giving you an estimate of your