Formula of Equated Monthly Installment (EMI)
Topic started by Ramadas (@ globalb7.citicorp.com) on Wed Dec 19 18:21:25 .
All times in EST +10:30 for IST.
I searched many websites. They all help me with
output tables which give me the emi etc. None of
them gives me the exact formula or the method of
calculating on a worksheet. Most of them give
examples, some ask for the basic inputs like period of loan in months, principal, rate of interest etc and gives me a lenghthy table. Can somebody explain the exact formula or method of calculating on an excel worksheet?
Responses:
- Old responses
- From: RI (@ )
on: Wed May 28 08:17:07
PK Narayan or Ramadas/Agastya, could you email me the excel sheet please which is referred above? Thanks.
- From: Ravi (@ 202.81.18.30)
on: Fri May 30 06:23:46 EDT 2003
Even I would like to have the excel sheet, can
PK Narayan or Ramadas/Agastya please mail me the excel sheet referred above.
- From: Ramadas (@ dclient217-162-114-70.hispeed.ch)
on: Fri May 30 14:00:20 EDT 2003
Sorry Sirs,
A virus attack on my system needed all files to deleted and the disk re-formatted. I lost the above file.
- From: Priyantha (@ 203.115.28.226)
on: Sun Jun 8 23:02:00 EDT 2003
the formula in North America.
The calculation is: S = AJ(1+J) n
-----------
(1+J) n -1
A = principal
S = monthly installment
I = annual rate of interest
J = monthly rate of interest
N = time in months or years
- From: sanjay (@ ppp-219.65.7.76.mum1.vsnl.net.in)
on: Tue Jun 17 01:05:21 EDT 2003
how i can find EMI at monthly rest?
- From: Vijay (@ njpproxy1.satyam.com)
on: Tue Jun 17 04:19:42 EDT 2003
To calculate the EMI for Monthly reducing balance rate system, use the following formula:
EMI = (p * r)/[1-(1+r)^1/n]
P = Principal
r = rate of Interest. If the rate is say 10% per annum then r = 10 /(100*12)
n = Term duration. if the repayment is 10 Years then n will be 12 * 10
For a loan of 100000.00 at 9% rate of interest and 15 years repayment period the EMI will be
100000 * (9/1200) / [1 - (1 + (9/1200))^-180]
= 1015 per month
- From: sanjay s.s. (@ ppp-219.65.7.93.mum1.vsnl.net.in)
on: Wed Jun 18 00:54:15 EDT 2003
To calculate the EMI for Monthly reducing balance rate system, use the following formula:
EMI = p*r*(((1+r)^n)/(((1+r)^n)-1))
P = Principal
r = rate of Interest. If the rate is say 10% per annum then r = 10 /(100*12)
n = Term duration. if the repayment is 20 Years then n will be 12 * 20
For a loan of 100000.00 at 10.25% rate of interest and 20 years repayment period the EMI will be
EMI = 100000*(10.25/1200)*(((1+(10.25/1200))^240) / (((1+(10.25/1200))^240)-1)
EMI = Rs. 982.00
- From: Shankar (@ )
on: Sat Jul 26 02:17:53
we need a formula for calculating the interest value in the particular instalment for EMI
- From: Easwaran (@ 203.197.46.8)
on: Thu Jul 31 03:30:47 EDT 2003
I was also interested in the same topic. However how do you calculate the Interest and Principal component in the EMI ?
- From: Ramu (@ dclient80-218-21-59.hispeed.ch)
on: Thu Jul 31 15:23:46 EDT 2003
Easwaran and Shankar
Please read all the postings by clicking Old Responses also. Everything is explained.
- From: mazhar (@ 203.94.224.187)
on: Wed Aug 13 14:16:09 EDT 2003
How can i use excel's function pmt to generate a table for emi.
- From: mukesh (@ bomdp-33-33.mantraonline.com)
on: Mon Oct 13 14:16:00
i would like the excel sheet
- From: Rahul Bansode (@ 203.199.156.2)
on: Tue Oct 14 09:10:28 EDT 2003
Hello Friends,
I have done the Calculation of EMI using the standard EMI calculation formula. Can anybody let me know how to calculate the Period of the Loan Amount, when I EMI Amount, Int. Rate, Loan Amount
- From: shyam (@ )
on: Fri Oct 24 11:36:34
what does > stand for
- From: Garfield Gonsalves (@ )
on: Tue Nov 25 21:44:59
I need to know how to calculate a loan using the reducing balance formula
- From: Waichung (@ host-64-110-82-211.interpacket.net)
on: Thu Nov 27 05:11:05 EST 2003
Given one parameter say term, EMI figure, periodic rests, how to get rate, or any one when others but that is provided?
- From: Himanshu Maheshwary (@ 210.7.86.38)
on: Tue Dec 2 06:46:50 EST 2003
Please inform us how to calculate the principal calculation in each istallments Or after say 47 installements as I paid lumpsum amount of Rs 100000 apart from the regular installments for House loan whose initial period was 10 years and after 3 1/2 years we paid 100000, 50000, 40000 in various months..So explore the principal caculation formula so that we can calculate revised EMI.
Regards,
Himanshu
INDIA
- From: Podiyan (@ 165.222.186.195)
on: Tue Dec 2 10:31:20 EST 2003
The formula to be used in xl is
EMI=pmt(r,n,-p,0)
where
pmt is the xl function
r is the int rate per month. If rate is 12%, then r = 1%
n is the period in months
p is the original principal
The abv formula is for monthly red bal.
From EMI to find the Prin and Int components.
The Int comp = P*r/12
where P is the principal O/s, where for Ist emi, it is the original principal.
r is the original int rate per annum
The EMI - above Int comp is the Princi compoent.
Now reduct this principal from the original principal to arrive at the new int component and principal comp for the 2nd EMI and so on.
- From: Himanshu Maheshwary (@ 210.7.86.38)
on: Thu Dec 4 07:24:54 EST 2003
We already know to calculate EMI if Principal Loan, Interest, Time period are given..Anybody could inform us how to calculate remaining Principal in reducing principal method, after given time if EMI paid regularly...Is there any way by which we can calculate Remaining principal after say 40 Months directly..
- From: piyush jatania (@ 203.94.221.225)
on: Wed Dec 10 01:52:32 EST 2003
send this emi calculation to piyush
- From: Pawan Jajodia (@ 203.129.238.130)
on: Thu Dec 11 04:40:02 EST 2003
CAN ANYBODY TELL ME WHAT IS THE FORMULA TO BE USED FOR GRADUATED EMI. IT WORKS LIKE THIS, FOR THE FIRST 2 YEARS, I WOULD BE PAYING 24 MONTHLY INSTALLMENTS OF SAY 'X' AND AFTER THAT FOR NEXT 24 MONTHS, I MAY BE PAYING 1.25'X' AND IT COULD INCREASE BY 25% AFTER THAT....
ALSO I WOULD LIKE TO KNOW WHAT WOULD BE FORMULA IF DURING FIRST YEAR I PAY LOANS AT 6.5%, NEXT YEAR AT 7% AND AFTER THAT FOR REMAINING 8 YEARS AT 8%
-- Pawan Jajodia
- From: Prabhakar, Ch (@ 202.62.65.5)
on: Wed Dec 17 11:02:40 EST 2003
how i can find EMI on daily basis? please give the formula for that. Thanking you for your reply.
- From: Ajay Kumar (@ chant.show-net.net)
on: Wed Jan 14 02:12:18
can anybody tell how to calculate monthly installment on daily interest for a loans
for eg: 85000 for 10 years @7.5 % of interest
ie 85000 for 120 payments @7.5 % per year on daily interest
- From: Mahesh Kumar Dixit (@ )
on: Tue Jul 27 02:31:59
Please send MS Exel Sheet EMI Calculation formula.
- From: Deep (@ 61.3.133.109)
on: Sat Jul 31 10:53:24 EDT 2004
An excel chart to project EMI schedule for a loan of Rs. 100,000 at 14% p.a interest repayble in 48 months. The chart should clearly distinguish between Principal and Interest keeping the EMI constant. The formula of each should be clearly laid down.
- From: Deep (@ 61.3.133.109)
on: Sun Aug 1 01:39:19 EDT 2004
I have developed an Excel chart for EMI calculation with monthly rest. It's working fine
- From: pradhan (@ cache-gtc-ab16.proxy.aol.com)
on: Mon Aug 9 22:45:50 EDT 2004
If anyone has an excel file with a formula of the monthly reduced balance, kindly send that to me e-mail id pradhan@Rock.com
- From: ram (@ 203.124.146.98)
on: Sat Aug 14 04:07:02 EDT 2004
Tell me simple method to calculate EMI
- From: ram (@ 203.124.146.98)
on: Sat Aug 14 04:07:12 EDT 2004
Tell me simple method to calculate EMI
- From: ram (@ 203.124.146.98)
on: Sat Aug 14 04:07:20 EDT 2004
Tell me simple method to calculate EMI
- From: Madhur Karwa (@ 203.94.214.183)
on: Sun Aug 22 08:14:23 EDT 2004
sir i want to know simple method of calculating the EMI
In some of the above cases i studied has the sign ^ which i Coudn't get it
In Comp. there is direct calculation given but no specific formula
So sir please help me out.
Thank U
- From: Lalit Kumar Sahoo (@ 202.138.126.62)
on: Thu Aug 26 02:11:04 EDT 2004
I am interested to buy a two wheeler on finace.Cost of vehicle is Rs.50000 approx. I am ready to pay Rs.20000 as down payment and rest will be paid at equal monthly instalment for 24 months at 8.25% interest p.a. please help me out
- From: nagesh (@ )
on: Fri Sep 10 02:36:58
please sent excel formula and details for calculation of monthly emi calculation
and
reducing balance emi calculation
- From: Manoj Kumar (@ )
on: Mon Sep 20 07:23:08
What is the exact formula for EMI calculation ? I want the details with example>
- From: Manoj singh (@ 202.140.42.129)
on: Mon Sep 20 07:24:49 EDT 2004
What is the formula for EMI calculation on monthly reducing basis? I want details with examples.
- From: K R N (@ 61.0.90.189)
on: Wed Sep 22 22:30:41 EDT 2004
The formula for calculation of EMI given the loan, term and interest rate is:
EMI = (p*r) (1+r)^n
__________
(1+r)^n - 1
p = principal (amount of loan), r = rate of interest per instalment period, i.e., if interest is 12% p.a. r = 1, n = no. of instalments in the tenure, ^ denotes whole to the power.
- From: Prasad (@ 203.199.29.130)
on: Tue Sep 28 05:54:31 EDT 2004
Hi, I am prasad. I know how to calculate EMI in Excel and prepared one EMI package for all calculations.
- From: viplove (@ )
on: Mon Oct 11 08:07:14
please explain me emi concept with formula and example.
- From: koonfoon (@ brf-ce08-g2-0.tm.net.my)
on: Mon Oct 25 06:16:17
what is the interest is different each year instead of flat rate.
for example, principal= 10,000
Term Duration= 10 year
1st year interest rate = 2.5
2nd year interest rate = 5.0
3rd and the less of the years = 6.0
Is there any formula for this ?
Tell your friend about this topic
Want to post a response?
Back to the Forum