How is an EMI calculated?

What is an Home Loan EMI?

Equated Monthly Installment (EMI ) is the amount payable to the bank or lending institution every month, till the home loan is paid back in full.

EMI consists of a portion of the interest as well as the principal. In the early years EMI goes to heavely to interest. Later years EMI goes to heavely to principal

Home Loan EMI Formula:

l x r [(1+r)n /(1+r)n-1 ] x 1/12

Here,  l = Loan amount

r = Rate of interest

n = Term of the loan  

Also Read
Types of Home loans: Which one is suit for you?



 


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