How EMI is Calculated

EMI is calculated using a standard formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Where:

• P = Loan Amount
• R = Monthly Interest Rate
• N = Number of Months

Example

If you take ₹5,00,000 loan at 10% interest for 5 years, your EMI will be calculated using this formula.