calculator-guru.net

♥ 9353423

        
Guide to use scientific-calculator
        
        EMI (Equated Monthly Installment) - Detailed Theory
          1. What is EMI?
          EMI stands for Equated Monthly Installment. It is a fixed amount paid by a borrower every month to repay a
          loan over a specific period. Each EMI payment includes a portion of the principal and a portion of the interest.
          
          2. EMI Formula
          The EMI is calculated using the following formula:
          EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
          Where:
          - P = Principal loan amount
          - r = Monthly interest rate (annual rate / 12 / 100)
          - n = Total number of monthly installments
         
         3. EMI Calculation Example 
          Example: Loan Amount = Rs.5,00,000, Annual Rate = 10%, Tenure = 5 years (60 months)
          Monthly Interest Rate = 10 / 12 / 100 = 0.00833
          EMI = Rs.10,623.57 (approximately)
         
          4. EMI Breakdown
          In the beginning, a larger portion of EMI goes toward interest, and a smaller portion reduces the principal.
          Over time, the interest portion decreases and the principal portion increases. This is known as amortization.
         
          5. Amortization Table
          An amortization table shows the breakup of each EMI into principal and interest along with the outstanding
          balance. It helps understand the repayment pattern and how the debt decreases over time.
         
          6. Total Payment and Interest
          Total Payment = EMI x Number of Months
          Total Interest = Total Payment - Principal Loan Amount
         
         7. Benefits of EMI
          - Makes large purchases affordable
          EMI (Equated Monthly Installment) - Detailed Theory
          - Fixed predictable monthly payments
          - Allows financial planning
          - Early repayment reduces total interest
         
          8. Factors Affecting EMI
          - Choose tenure wisely: Longer tenure reduces EMI but increases total interest
          - Compare EMIs from different lenders
          - Use EMI calculators for financial planning
          - Prepay when possible to save interest