How to calculate the EMI?
Sometimes, it is little weird how some small things which is of no big deal keeps you engaged the whole day...this morning, i started to look at the formula in excel to calculate the EMI. Three variables are known : Principle amount;Rate of interest;Number of years. So, i started with the simple formula of calculating the simple interest. SI = P*N*R. Then, calculated the total amount = P + SI. Then, divide the whole thing by the number of months. Therefore, EMI = (P + SI) / (N*12). But, it did not work out for my loan amount. I started asking about it to my friends...and that is the lead for the whole lot of R&D threads. So, i searched the web with the keyword 'The EMI is calculated as...' Google returned back a tempting article in Economic Times that immediately advised me to look for the EMI Calculator in the web than to break the head to find out the formula myself. So, i refined my search as 'EMI Calculator' and got a link to Punjab National Bank page. I started using the web based EMI Calculator and everything seem to work fine. But, still, it did not solve my purpose. I kept on searching for the formula and someone found out that the 'PMT' function in excel will help. But, the quest is still not over as PMT did not return the correct EMI value...It 2:00 am in the morning and i am keep trying out my luck to build a excel form to calculate the EMI.
posted by K Bright Inbasagaran @ 1:22 PM
38 comments
38 Comments:
it is not an big threat or an secret mr inba.see we all would have learnt about the compounding analysis in our school days
FV=PV*R+(PMT(1+R)^N/(1+R)^N -1
we all know the at the end of the loan the value of the loan becomes zero then final value of the loan becomes zero
fv=0
then
PMT = P*R(1+R)^N/((1+R)^N -1)
PMT - installment you pay
P- principal
R is the periodic interest
say if you are borrowing a loan at 12 % then divide by 12 that will be 1% is what that should be used in this formula
N- no of installments
that is go try the EMI
the PMT formula and ur value should match it is generic formula and matches with all the values by any formulas
EMI calculation:
EMI = (p*r)(1+r)^n/((1+r)^n)-1)
p = principal (amt of loan), r = rate of interest per instalment period, i.e., if interest is 12% p.a. r = 1, n = no. of instalments in the tenure, ^ denotes whole to the power
please check following two links they can provide little help
http://www.esnips.com/doc/3fa08ca7-05a0-400b-ba76-34b749e8dcfd/EMI-Calculator
or
http://www.esnips.com/doc/4c77ba88-9ae7-47c9-8d02-da4d3e95e443/EMI_Calculator
More powerful but simple excel based emi calculator which also factors in upfront fees/charges,if any and returns effective cost - useful for comparisons - www.geocities.com/accessreddy/excel
More powerful but simple excel based emi calculator which also factors in upfront fees/charges,if any and returns effective cost - useful for comparisons - www.geocities.com/accessreddy/excel
Bright, Just hit your blog by searching EMI calculaion....
Nice to see you here....
Rgds,
Saravana Bhavan
Thanks for your blog. There are also online EMI calculators(See www.liveatease.com
Dear All,
I tried to calculate the EMI using the below mentioned formula
EMI = (p*r)(1+r)^n/((1+r)^n)-1)
But i could not get the correct answer, plz help me out by explaining it with an example(taking values).........
Dear All,
I tried to calculate EMI using below mentioned formula
EMI = (p*r)(1+r)^n/((1+r)^n)-1)
But i could not get the correct answer, plz help me out by explaining with an example(say taking values of p=100000,r=12% i.e. 1% and n=24)
Try try the excell sheet at http://www.liveatease.com/FunEase/ShareEase/tabid/234/Default.aspx to see how you can easly do this using excell
Thanx for this problem
i cudnt calculate the emi
show me this calculation
Loan Amount 35000
EMI 1851
Period 3yrs / 36 months
PLEASE GIVE EXPLANATION FOR ANY OF THE FORMULA
u can mail me abhiirich@gmail.com
awaiting ur response
thnx
guys, check this
http://www.indinv.com/index_files/Page298.htm
it shows how the formula is derived.
(100000*0.01((1+0.01)^24))/(((1+0.01)^24)-1)
. The answer is 4707
(100000*0.01(1+0.01)^24)/((1+0.01)^24)-1
The answer is 4707
Use this one to calculate and see below to determine the correct value of R
PMT = P*R(1+R)^N/((1+R)^N -1)
PMT - installment you pay
P- principal
R is the periodic interest
say if you are borrowing a loan at 12 % then R = 12/(12X100)= 0.01 & N- no of installments
If the rate of interest is 12%
r should be equal to 0.01 and not 1.
verify your answer by using Excel function PMT.
e.g. =PMT(12%/12,120,100000)
or =PMT(0.01,120,100000)
you might ot be dividind the rate by 100...we do this because its int the form of a percentage..
This may sound stupid but, I wanted to know how to calculate how much interest you are paying for a loan. With the methods given I keep getting different answers.
Loan Amount*3,50,000
EMI Paid - 8,008
Tenure - 60 Months
http://www.hughchou.org/calc/formula_deriv.html
check this
Hi all,
Had tried out the EMI calculation and don mistake me that, i am new to these type of calculations and could u pls say me y we r using the r value as r=1% but rate of interest is 12%.. And pls explain me with an example...
Thank you..
MY LOAN AMOUNT IS 480000.TAKEN ON 01-01-2009.RATE OF INTEREST IS 5%.REPAYABLE STARTS FROM 01-01-2010,TILL 01-01-2010 ONLY INTEREST TO BE ADDED TO THE PRINCIPLE AMOUNT.WHAT IS MY EMI FROM 01-01-2010.
I feel the formula cannot calculate EMI if Installment is monthly and compounding is on , say, quarterly. Could someone explain?
Following link contains EMI Calculator and also displays EMI calculation Formula:
http://www.etechplanet.com/tools/EMI-Calculator.aspx
Sir I am also searching for EMI formula , If u get it then plz let me know.If I then I will send it to u.
Sir I am also doing searching of EMI , If u get it then plz let me know n if I ,Then send u.
how can a simple calculator be used to calculate EMI, can someone throw light on it? esp with long tenure of say 72 or 84 months
EMI = (p*r)(1+r)^n/((1+r)^n)-1)
From given EMI calculation formula, Can anyone help me to deduce a formulae for Calculating R from the EMI expression.
EMI=((Loan amt*rate%*no of yrs)+(loan amt))/(no of months to pay)
Good dispatch and this post helped me alot in my college assignement. Thanks you seeking your information.
You can calculate the monthly payment on your loan easily using the EMI calculator at http://www.emicalculator.in
There are 3 of EMI Calculators
Download 3 Types of EMI Calculators: http://emicalculator3types.blogspot.com/
Formula for Calculate EMI is:
p x (((i/12) + 100)/100)^t
________________________________________________________________________
1 + (((i/12) + 100)/100) + (((i/12) + 100)/100)^2 + ——— + (((i/12) + 100)/100)^t-1
Where:
P is Principal
I is Rate of Interest per Annam
T is Tenure
There are there 3 of EMI Calculators
Download 3 Types of EMI Calculators: http://emicalculator3types.blogspot.com/
Formula for Calculate EMI is:
p x (((i/12) + 100)/100)^t
________________________________________________________________________
1 + (((i/12) + 100)/100) + (((i/12) + 100)/100)^2 + ——— + (((i/12) + 100)/100)^t-1
Where:
P is Principal
I is Rate of Interest per Annam
T is Tenure
Though the formula used for calculating EMI in excel sheet is not so much useful.However with the availability of various tolls and calculators various tools like EMI calculator, it is very easy to calculate EMI.With the help of Emi you can calculate EMI on every loan like personal loan and other loans.You said you searched for Emi Calculator and it was not useful, probably you must not have operated it well or the calculator must be wrong. You can use EMI Calculator on Dialabank.com
EMI Calculator helps you to check your home loan EMI within seconds. You can check it with 'EMI = P * ( i / ( 1 - (1+i)^(-12*N)))' formula or else there are many online tool where you just have to put your details and you will get exact amount you have to pay
EMI Calculator helps you to check your home loan EMI within seconds.
You can check your emi by formula or else there are many easy to use and acute EMI Calculator online.
Now a days, you may find so many online tools to calculate EMi's. You could be wrong manually, but these tools which as known as EMI calculators are the best and error-free. You should check out these Personal Loan EMI calculator before you take a loan in India, as this is the most efficient tool I have found online.
Hi, good and easy formula for EMI Calculation. Thanks for sharing Home Loans EMI Calculator.
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