EMI Calculation

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pravin

pravin (Querist)
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15 April 2011 Sir please give me a formula of EMI Caculation with interest

Kumar Babu.G

Kumar Babu.G (Expert)
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15 April 2011 Rs.100000 Loan 15% interest 20 months period.EMI is (100000*115%)/20 = 5750

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pravin

pravin (Querist)
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15 April 2011 sir, when i calculate with loan calculator there is some difference in ur calculation

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 April 2011 http://www.deal4loans.com/Contents_Calculators.php

Please see above link.

pravin

pravin (Querist)
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15 April 2011 Thanks sir but we r not calculate with calculator, i want a formula to calculate with calculator or excel formula

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 April 2011 This is the formula to calculate:

E = P×r×(1 + r)n/((1 + r)n - 1)

E is EMI

where P is Principal Loan Amount

r is rate of interest calculated in monthly basis it should be = Rate of Annual interest/12/100

if its 10% annual ,then its 10/12/100=0.00833

n is tenure in number of months

Eg: For 100000 at 10% annual interest for a period of 12 months

it comes to 100000*0.00833*(1 + 0.00833)12/((1 + 0.00833)12 - 1) = 8792