Personal loan EMI is a certain amount that the personal loan borrower pays to the lender each month on a specified date for a certain period. EMIs pay off the interest as well as the principal amount. The personal loan EMI calculation depends on 3 factors – the personal loan amount, the personal loan interest rate and the personal loan tenure.
A personal loan EMI calculator is used to calculate the amount of EMI that the borrower needs to pay the lender every month. It is a handy tool that calculates the EMI amount based on the details you enter. The details you need to enter in a personal EMI calculator are as follows:
Once these details are entered in the personal loan EMI calculator, it then works on two arithmetic formulae – a simple calculation to calculate the interest and a complex calculation to calculate the personal loan EMI.
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1],