What is EMI and How Is It Calculated?
EMI (Equated Monthly Installment) is the fixed amount you pay every month when you take a loan.
Formula
EMI = [P × r × (1 + r)^n] ÷ [(1 + r)^n – 1]
- P = Loan Amount
- r = Monthly Interest Rate
- n = Number of Months
Why It’s Important
- Helps plan your monthly budget
- Avoids loan defaults
- Lets you compare loan offers easily
👉 Try our EMI Calculator to plan your finances.