EMI
Equated Monthly Installment
Investment PlanningA fixed payment amount made by a borrower to a lender at a specified date each month. Includes both principal and interest components.
Formula
EMI = P × r × [(1 + r)^n / ((1 + r)^n - 1)]
Why it matters
Understanding EMI helps you plan loan affordability. Higher tenure means lower EMI but more total interest paid.
Indian example
Related terms
Learn the concept
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