How do you calculate your monthly EMI for loans? Well, here is the simple formula for EMI Calculations:
| Symbol | Description |
|---|---|
| L | Loan amount |
| N | Number of months, of loan tenure. (15 years is equal to 180 months, N = 180) |
| I | Interest rate, per installment period. (9% p.a. means I = 9/(12*100) = 0.0075) |
So, for a loan amount of 1,00,000 Rs for 15 years at the interest rate of 9% p.a. the EMI will be: 1,014 Rs.
The same can be done using Microsoft Excel, by using the PMT function:
= PMT(9%/12, 15*12,100000)