EMI Calculator

The above variables stands for -

• P stands for the amount that you want to borrow.
• R stands for the rate of interest applicable on the loan amount on a monthly basis.
• N stands for the tenure of the loan repayment.


• Let us take an example to understand the EMI calculations in a better way,
• Say, you have taken a personal loan of Rs. 4 lakhs for 3 years at an interest rate of 20% p.a.
• Firstly, we need to convert the annual rate of interest into a monthly rate & also the loan tenure into months.
• To calculate the monthly interest rate, we have to divide the annual interest rate by the number of months in a year, i.e. 20/12 =1.66% per month
• The 3-year loan tenure must also be converted into months before putting it into the formula i.e. 36 months
• Now we have the three variables with us which we can integrate into the formula as follows -

EMI = [4,00,000 x1.66/100 x (1+1.66/100) ^ 36 / [(1+1.66/100) ^ 36 -1)
EMI = Rs. 14,865

= 14, 865 + 1,35,156
= 5,35, 156