EMI Calculator

Here’s a simple EMI (Equated Monthly Installment) calculator formula and explanation, along with an example:

✅ EMI Calculator Formula

EMI=P×R×(1+R)N(1+R)N−1EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N – 1}EMI=(1+R)N−1P×R×(1+R)N​

Where:

• EMI = Equated Monthly Installment
• P = Principal loan amount
• R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
• N = Loan tenure in months

🧮 Example Calculation

Suppose:

• Principal = ₹10,00,000
• Annual Interest Rate = 10%
• Tenure = 5 years (60 months)

Step 1: Convert annual interest rate to monthly rate:
10% annually → 10 ÷ 12 ÷ 100 = 0.00833

Step 2: Plug into formula:

EMI=(1+0.00833)60−110,00,000×0.00833×(1+0.00833)60​

EMI≈₹21,247

🔢 Quick EMI Calculation Table (Sample)