Formula for Calculating EMI 

The formula commonly used for calculating EMI is:
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]


Where:

• P = Principal loan amount (loan amount)
• R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
• N = Loan tenure in months
   

This formula is widely used in loan EMI calculators to provide an accurate estimate of the monthly 
payments required to repay the loan.


Example Calculation -
Loan Details:

• Principal (P): ₹5,00,000
• Annual Interest Rate: 9.5%
• Tenure: 5 years (60 months)

Plugging these values into the formula:

R = 9.5% ÷ 12 ÷ 100 = 0.007916 (0.7916% per month)
EMI = [5,00,000 × 0.007916 × (1+0.007916)^60] / [(1+0.007916)^60 - 1]   =  ₹10,512 per month

This means your monthly EMI would be approximately ₹10,512