Usually while preparing Project Reports for banks, we need to calculate EMI for the proposed loan so as to frame out the loan repayment schedules. Though, there are many online calculators available, I believe its the Best when you can do it Yourself.
Moving on the same lines, I found a simple formula to find out EMI, given the other particulars as detailed below:
EMI = (P*r) [(1+r) ^ n /(1+r) ^ n -1]
Where
P= Principal i.e. Amount of Loan
r= Rate of Interest per installment period i.e. monthly, quarterly etc.
n= The tenure of the loan.
** These days we usually, actually mostly use spreadsheets for preparing Project Reports. Use 'PMT' function to calculate EMI and add to your productivity.
P.S.: EMI payment loan are heavily tilted towards interest payments at the start and principal repayments at the end of the loan tenure.
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