EMI P r 1 rn1 rn - 1 where P Loan amount r interest rate ntenure in number of. The mathematical formula to calculate EMI is. EMI P x I x 1IN1IN-1 wherein P loan amount or Principal I Interest rate per month and N the number of installments.
Just like in the PMT formula you must ensure that the units for rate and EMI period are the same.
EMI is Equated Monthly Instalment P is the principal amount that you want to take as loan R is the rate of interest applicable on your loan N is the number of months for which you have taken the loan. Just like in the PMT formula you must ensure that the units for rate and EMI period are the same. However the principal and the interest components are not equal in your installment. This is called Equated Monthly Installments EMI.