SEASON 3
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
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.)
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.
Copy link
Edit on GitHub