Calculation Formulas
Here are the mathematical formulas we use for all our calculations
EMI Calculation Formula
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
P: Loan Amount (Principal)
R: Monthly Interest Rate (Annual Rate/12/100)
N: Number of Monthly Installments (Tenure × 12)
SIP Calculation Formula
Future Value = P × ((1 + r)^n - 1) / r × (1 + r)
P: Monthly Investment Amount
r: Monthly Rate of Return (Annual Rate/12/100)
n: Total Number of Months (Years × 12)
Amortization Schedule Calculations
Monthly Interest = Remaining Loan × Monthly Interest Rate
Principal Payment = EMI - Monthly Interest
New Remaining Loan = Previous Remaining Loan - Principal Payment
Monthly Interest Rate: Annual Rate/12/100
Additional Payment Calculation
When additional payments are made:
Total Monthly Payment = EMI + Additional Payment
Principal Payment = Total Monthly Payment - Monthly Interest
Reduced Tenure is calculated by iterating through the amortization schedule until the remaining loan is fully paid off