How EMI Is Calculated

An EMI is a fixed monthly payment commonly used for loans. The payment combines principal repayment and interest.

What it means

An EMI is a fixed monthly payment commonly used for loans. The payment combines principal repayment and interest.

Formula

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)

Example

P is principal, r is the monthly interest rate and n is the number of monthly payments.

Use the calculator

Use CalcNexa to perform the calculation with your own values.

Open EMI Calculator →