Note:
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Calculator is provided only as general self-help Planning Tools.
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Calculated EMI Result is indicative only.
P= principal (amount of loan),
R = rate of interest per installment period, i.e., if interest is 12% p.a. R = 1,
n = no. of installments in the tenure,
^ denotes whole to the power.
Example 1:
Calculate the EMI for the loan amount taken Rs.20,00,000 (20 lakh) at 9% annual interest [(9/12)/100 = 0.75 per month/100] for a period of 15 years (180 months).
Here P = 20,00,000 and R = 0.75/100 (9%/12) and n = 180 (15 years)
Answer:
EMI = P × R × [ (1 + R)n/((1 + R)n - 1) ]
EMI = (20,00,000 x 0.75/100) x [ (1+0.75/100)180/ ((1+0.75/100)180-1) ]
= (20,00,000 x 0.0075) x [ (1+0.0075)180 / ((1+0.0075)180-1) ]
= 15,000 x [ (1.0075)180 / ((1.0075)180-1) ]
= 15,000 x [ (3.8380432675) / (3.8380432675)-1) ]
= 15,000 x [ (3.8380432675) / (2.8380432675) ]
= 15,000 x [ (1.352355445546427) ]
= Rs 20,285
Example 2:
Ravi has borrowed Rs. 5 lakhs from a bank on the interest rate of 12% (annual interest) for 5 years.
Here P = 5,00,000 and R = (12/12)/100 = 1 per month/100 = 0.01 and n = 60 (5 years)
Answer:
EMI = P × R × [ (1 + R)n/((1 + R)n - 1) ]
EMI = (5,00,000 x 0.01) x [ (1+0.01)60/ ((1+0.01)60-1) ]
= 5,000 x [ (1.01)60 / ((1.01)60-1) ]
= 5,000 x [ (1.8166966986) / (1.8166966986)-1) ]
= 5,000 x [ (1.8166966986) / (0.8166966986) ]
= 5,000 x [ (2.22444476843634) ]
= Rs 11,122