How EMI Is Calculated in India (Formula + Example)

Learn how EMI is calculated in India using formula, examples, and calculator.

What is EMI?

EMI (Equated Monthly Installment) is the fixed monthly payment made towards a loan.

EMI Formula

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

Where:

• P = Loan Amount
• R = Monthly Interest Rate
• N = Loan Tenure in Months

Example

For a loan of ₹5,00,000 at 10% interest for 20 years, EMI can be calculated easily.

👉 Try our EMI Calculator to calculate EMI instantly.