Edu loan EMI calculation

How to calculate Education loan EMI and understanding interest rates?

Use spreadsheet ↗ to quickly calculate.

Hand calculation

EMI=[PR(1+R)n][(1+R)n1]EMI = \frac{[P * R * (1+R)^n]} { [(1+R)^ n-1]}

Symbol

Description

Comment

P

Principal loan amount

Amount you have received from the bank

R

Rate of interest

  • 9.0% per annum, generally.

  • 9.0/12 = 0.75% per month.

n

Number of monthly installments

For 2 years, 2 * 12 = 24

in Indian Rupees
in US Dollars
in Indian Rupees

P = 3,00,000 INR

R = 9.0% per annum = 0.75% per month = 0.75/100 points = 0.0075

n = 24 (say, 2 years)

EMI = [3000000.0075(1+0.0075)24][(1+0.0075)241]\frac{[300000 * 0.0075 * (1 + 0.0075)^{24}]}{[(1+0.0075)^{24} - 1]} = 13,705 INR (approx.)

in US Dollars

P = 3,00,000 USD

R = 9.0% per annum = 0.75% per month = 0.75/100 points = 0.0075

n = 24 (say, 2 years)

EMI = [3000000.0075(1+0.0075)24][(1+0.0075)241]\frac{[300000 * 0.0075 * (1 + 0.0075)^{24}]}{[(1+0.0075)^{24} - 1]} = 13,705 USD (approx.)

Using spreadsheet

Update Blue cells in the spreadsheet ↗ as shown.

EMI is in the green box.