Difference between pmt formula and emi formula

2353 views 3 replies
What is the difference between PMT formula and EMI formula? Or both are same?
Replies (3)

Actually it may be called same, as PMT is one of the function in EXCEL to calculate the payment for a loan based on constant payments and a constant interest rate, i.e EMI.

 The basic formula that works behind an EMI calculator is:

E = P x r x (1+r)^n/((1+r)^n – 1)

for details you may refer https://www.youtube.com/watch?v=WzofplrjidU

Thanks for your reply, Sir, I'm a Banker. When we open loan account there are 2 different options one is on PMT formula and second is on EMI formula, that is why I'm confused. If both are same then why 2 options are there?

I know that in excel we can find EMI with PMT formula. 

Thanks again

 

 

Oh, in that case check whether bank has specifically designed software for that?. Does operation or results differ or are same?


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register