Frequently asked questions
EMI stands for equated monthly instalments. It is the monthly amount that you will have to pay when opting for any type of loan. The entire loan amount, along with interest liabilities, is broken down into smaller monthly sums. The tenor, principal, and the interest rate charged are crucial parameters for EMI computation.
The formula for EMI calculation is as follows:
EMI = P x R x (1+R)^N / [(1+R)^N-1], where P is the principal, R is the rate of interest, and N is the tenor.
Enter the principal, tenor, and rate of interest to calculate the EMIs payable, and total interest payable and get a detailed amortisation schedule.
Using an EMI calculator is simple. Use the slider to select the loan amount you wish to borrow, repayment term and loan interest rate quoted. Once you have selected these three inputs, your EMI will be displayed on the screen. These tools are available for free and can be used any number of times.