Calculation of EMI

using present value annutity factors

very simple... :)

Let rate of Int is 10% (annual), term of repayment is 20 Years and Loan amount is Rs. 20Lacs.

Then, EMI will be computed as below:-

EMI = (Loan Amount - Down Payment)/sum of PVF for 20 Years

 = (20,00,000 - Nil)/8.514 = 234907

Find attached file....

CALCULATING EQUATED MONTHLY INSTALLMENT (EMI)
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In house finance, equated monthly installment (EMI) refers to the monthly payment towards interest and principal made by a borrower to a lender. EMI is calulated using a formula that considers loan amount, interest rate, and loan period as variables.
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The formula for calculating EMI:
EMI = (L × I) × [(1 + I)^^N  ÷ {(1 + I)^^N } -1]
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Where
L = loan amount
l = interest rate per annum divided by 12
^ = to the power of
N = loan period in months
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Assuming a loan of Rs. 1 lakh at 9 % per annum, repayable in 15 years, the EMI calculation using the formula will be:
EMI = (1,00,000 × 0.0075) × [(1 + 0.0075) ¹⁸⁰  ÷ {(1+0.0075) ¹⁸⁰} - 1]
        = 750 × [3.838 ÷ 2.838]
        = 750 × 1.35236
        = 1,014

Source