Understanding Loan EMI Calculation
Published on March 08, 2025
What is EMI?
EMI (Equated Monthly Installment) is the amount you pay monthly to repay your loan. Here's how it's calculated:
- Principal amount
- Interest rate
- Loan tenure
EMI Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where:
- P = Principal amount
- r = Monthly interest rate
- n = Number of monthly installments