EMI stands for equated monthly instalments. It is the amount you must pay every month till the end of your loan tenure.
EMI is calculated using the formula: P x R x (1+R)^N] / [(1+R)^N-1]
P= Principal or your loan amount
R= Rate of interest
N= Tenure (loan term in number of years)
Your EMI includes two main components – principal and interest. In the early part of your tenure, the interest amount is higher and that becomes progressively lower. Towards the end of the tenure, the principal amount forms a large proportion of the EMI.
The EMI calculator has been designed in such a way that it can be used by anyone. You do not need to know the complex formulae to calculate your monthly payments. Just enter three key inputs – loan amount, term and interest – and the calculator will automatically do the calculations for you.
WHAT IS AN EMI ?
Ans : There are a variety of home loans available. EMI (Equated Monthly Installment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.
HOW IS AN EMI CALCULATED?
EMI Formula: l x r [(1+r)n /(1+r)n-1 ] x 1/12resident outside India are considered as capital account transactions.