How to Calculate EMI for a Loan (Complete Guide)
March 2026EMI stands for Equated Monthly Installment. It is the fixed amount you pay every month toward your loan. EMI Formula: EMI = [P × R × (1+R)^N] / [(1+R)^N – 1] Where: P = Principal Loan Amount R = Monthly Interest Rate N = Number of Months Understanding EMI helps you plan your finances effectively.