An EMI or Equated Monthly Instalment is made of two components - principal plus interest rate- that a borrower has to pay every month to pay off a personal loan. To find out how much interest you are paying through your EMI every month or the overall interest rate payable throughout the loan tenure, you can use a personal loan EMI calculator online. The EMI calculator uses the following formula:
Here is a general mathematical formula which is used to calculate EMI on loans:
P x R x (1+R)^N] / [(1+R)^N-1]
- P indicates the principal of your loan amount
- R indicates Rate of interest
- N indicates Tenure (loan term in some years)
You can use interest rate calculator, EMI calculator and tenure calculator on Afnioz.com to find out any of the components. The EMI calculator also displays an amortization table that includes details of the EMI amount that goes towards the principal amount payment and the interest amount.