Calculate your Equated Monthly Installments for loans with different interest rates and tenure periods
EMI stands for Equated Monthly Installment. It is the fixed amount you pay to the lender each month to repay your loan. The EMI includes both the principal amount and the interest on the loan.
EMI is calculated using the formula: EMI = P ˆ r ˆ (1+r)^n / ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate, and n is the loan tenure in months.
1. Try to keep your EMI below 40% of your monthly income
2. Consider a longer tenure for lower EMI
3. Make a down payment to reduce your loan amount
4. Look for loans with lower interest rates