About EMI Calculation

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both the interest and principal each month so that over a specified number of years, the loan is fully paid off along with interest.

The formula used for EMI calculation is:
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)

Where:
P = Principal loan amount
r = Monthly interest rate (annual interest rate / 12 / 100)
n = Total number of monthly payments (loan term in years × 12)