Finance & Interest
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Loan EMI

Equated monthly installment on a loan.

Formula

EMI=Pr(1+r)n(1+r)n−1EMI = \frac{P r (1+r)^n}{(1+r)^n - 1}

Variables

PPrincipal
rMonthly rate
nMonths

Example

A $10 000 loan at 1%/month over 12 months has an EMI of about $888.

Did You Know?

Early loan payments go mostly to interest; only in later years does the principal shrink quickly.

loanemimortgage