Calculate Your EMI Yourself

I was calcuating EMI for my loan through the formulae in the text and I found it very cumbersome.
 
EMI, we all know, Equal Monthly Installment. To know your emi before taking the loan is very important. From now onwards you don't have to go to bank or your financial agent to get it calculated. You can calculate your emi and plan your investment accoriding to your convinience.
 
The only thing you should know before calculating is the Interest rate, the bank or financing agency will charge you. After that you are all set to calculate your emi.
 
PMT function is one among many you can use to calcuate your emi.
 
Open the HOLY MS-Excel
 
Punch down the amount of Loan you want to take, the rate of interest the financial institution will charge you, and the period of emi you want to make, that's it.
 
=PMT(rate,nper,pv,fv,[type])
 
Now lets us understand the formula.
 

Rate- Rate of interest, you have to divide the rate of interest 12, 2 for monthly installment and semi    annually installment respectively. 

nper - No. of emi
Pv-  Value of Loan
Fv- Optional, it the the value of at the end of the period you would get.
type- There are two option 0 or 9. EMI Payable at the beginning of period (0), EMI Payable at the end of period (1)  

Please see the exhibit below for your reference.

 

 

This formulae can also be used to calculate the Final amount for your Recurring Deposit and various investment tools.

Keep Reading Keep Knowing.


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