What is EMI?

Equated Monthly Installment or EMI is the amount you are liable to pay to the lending institution every month. This is a regular monthly payment till the loan amount is paid back in full. The Equated Monthly Installment or EMI also comprises a portion of the interest as well as the principal. The Equated Monthly Installment or EMI formula used for calculation is:

Here l is the loan amount, r is the set rate of interest and n is the term of the loan. These three very important factors influence the home loan to a great extent and the application of the Equated Monthly Installment or EMI formula enables the accurate calculation of the monthly pay back. In fact, with the help of the formula, you can calculate the Equated Monthly Installment or EMI yourself! This calculation is universal and except a few variations in certain countries, the calculations are nearly the same.

This entry was posted on Wednesday, December 19th, 2007 at 5:28 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “What is EMI?”

  1. Loan Calculation

    2:37 am
    May 4th, 2008

    You got master mind on EMI? | Activ in Your Financial Activities !!, that’s why you could able to write a article like this, hats off mate - keep up the good work.

 

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