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EMI

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hanth23 Joined: 22 Jul 2007 Posts: 23 10.95 Dollars($)	Posted: Sun Jul 22, 2007 6:12 am    Post subject: EMI How is EMI calculated
adonis Joined: 22 Oct 2005 Posts: 1438 Location: ALASKA 135.80 Dollars($)	Posted: Mon Jul 23, 2007 12:22 am    Post subject: RE: EMI calculations Hanth, EMI stands for equated monthly installment. When you are taking out a home loan, you need to repay the loan to the housing finance agency in almost equal monthly installments known as the EMI. The EMI constitutes a payment towards the principal and also the interest. The value of your EMI will depend upon the amount you borrow, the rate of interest charged on it and the time period during which one needs to repay the loan. However, during the initial few years of the loan, the finance company tries to extract more interest payments and less payment towards the principal. _________________ Procrastination is the enemy of your financial sucess
helping_user Joined: 31 Mar 2006 Posts: 786 Location: Hawaii 146.34 Dollars($)	Posted: Mon Jul 23, 2007 3:29 am    Post subject: RE: calculating EMI with frm calculator Hi hanth, The Emi is calculated based on the following formulae. EMI = [(p*r) (1+r)^n]/[(1+r)^n – 1 Here, p = principal loan amount r = rate of interest per installment period n = no. of installments during the loan term ^ = whole to the power You can also use our Fixed rate calculator to determine the EMI. I think that will be much easier process. Thanks.

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