How to Calculate EMI using formula | Equated Monthly Installment | Loan repayment | How EMI works?
EMI or Equated Monthly Installment is the equally divided monthly payment to clear off an outstanding loan within the given time frame.
Mathematical formula for EMI calculation - EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P is the loan amount or principal, R is the interest rate per month [for example, interest rate per annum is 9%, then R will be 9/(12 x 100)], and N is the number of instalments [for example, if the loan period is 5 years, then N is 5 x 12 = 60]
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