# EMI Calculator

₹ 1 Lakh
₹ 2 Crore

1 Years
30 Years

#### Interest rate

5 %
25 %

EMI
₹ 5,510

Principal Amt.
₹ 3,00,000

Interest Payable
₹ 4,93,415 • Open Demat with exclusive Advice & Services
• One tap Investments, Automated trading & much more
• Minimum 1 lakh margin required

#### How EMI Calculator Works?

In order to calculate EMI you will have to enter the total loan amount which you want to borrow, time duration of the loan, and the interest rate. The basic formula to calculate EMI is -

#### EMI = P x r x (1+r)^n/((1+r)^n -1)

The above variables stands for -

• P stands for the amount that you want to borrow.
• R stands for the rate of interest applicable on the loan amount on a monthly basis.
• N stands for the tenure of the loan repayment.

• Let us take an example to understand the EMI calculations in a better way,
• Say, you have taken a personal loan of Rs. 4 lakhs for 3 years at an interest rate of 20% p.a.
• Firstly, we need to convert the annual rate of interest into a monthly rate & also the loan tenure into months.
• To calculate the monthly interest rate, we have to divide the annual interest rate by the number of months in a year, i.e. 20/12 =1.66% per month
• The 3-year loan tenure must also be converted into months before putting it into the formula i.e. 36 months
• Now we have the three variables with us which we can integrate into the formula as follows -

#### EMI = [P x R x (1+R)^N]/[(1+R)^ N-1]

EMI = [4,00,000 x1.66/100 x (1+1.66/100) ^ 36 / [(1+1.66/100) ^ 36 -1)
EMI = Rs. 14,865

#### Total Payment = Principal Amount + Total Rate of Interest

= 14, 865 + 1,35,156
= 5,35, 156