EMI Calculator is used to calculate the EMI (Equated Monthly Installment) and find out how much you need to pay every month towards your loan repayment

- Equated Monthly Installment:
`..`

- What does EMI mean?
- A money lender gives a specific amount of money to the borrower with a condition that the amount borrowed is paid back with interest as monthly installments. These installments are given over a predetermined period of time by the borrower and are referred to as EMI.

- Formula
EMI = [P x R x (1 + R) ^ N] / [(1 + R) ^ (N - 1)]

Where:-

- P - principal ( borrowed as a loan)
- R - rate of interest that is levied on the loan amount (monthly rate)
- N - tenure of repayment of the loan

- Example
- A person took a personal loan of Rs. 2 lakhs for 2 years at an interest of 20 % p.a. Divide the annual interest rate by the number of months in a year, i.e. 12, so monthly 20/12 = 1.66% per month. Now the 2-year loan tenure should be converted into months before integrating into the above formula i.e. 24 months.
According to the above formula:-

- EMI = [P x R x (1 + R) ^ N] / [(1 + R) ^ (N - 1)]
- EMI = [2,00,000 x 1.66 / 100 x (1 + 1.66 / 100) ^ 24 / [(1 + 1.66 / 100) ^ 24 - 1)
- EMI = Rs. 10, 179