tag:blogger.com,1999:blog-17482943.post115104742201618978..comments2012-09-03T10:54:00.005+05:30Comments on rmathew: Calculating EMIsRanjit Mathewhttp://www.blogger.com/profile/04429610992943896537noreply@blogger.comBlogger132125tag:blogger.com,1999:blog-17482943.post-70776143167911259282012-08-15T07:19:29.464+05:302012-08-15T07:19:29.464+05:30Anonymous: The "principal part of E" _is...Anonymous: The "principal part of E" _is_ (E - r.P), since r.P is the amount of pending interest that you must pay back. So remaining principal "P1 = P - (E - r.P)", which is just "P1 = P + r.P - E" as above.Ranjit Mathewhttp://www.blogger.com/profile/04429610992943896537noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-89558530618169072852012-08-15T02:22:04.852+05:302012-08-15T02:22:04.852+05:30Shouldn't the formula be P1= P + r.P - (Princi...Shouldn't the formula be P1= P + r.P - (Principal part of E) as only part of the EMI is paid towards the principal. So the outstanding principal should be reduced only by that much amount. <br />Am i missing something here?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-6926852411923342962012-07-30T11:50:31.293+05:302012-07-30T11:50:31.293+05:30Dear Sir
i have taken housing loan form canaraban...Dear Sir<br /><br />i have taken housing loan form canarabank 4lakhs in the year 2005. that time intrest rate was 8.5% now it is 12% adn my emi also increased.<br /><br />now my query is how much extra i have to pay if i take the 4lakh rupees.<br /><br />asper my calculating iam getting nearly 9 lakh rupees i have to make repayment.<br /><br />please clarify this imd.<br /><br />Regds<br />sabaUnknownhttp://www.blogger.com/profile/06906333896890090119noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-35570821714639273182012-07-11T13:47:35.172+05:302012-07-11T13:47:35.172+05:30Great Job..that explains the cloud now :)Great Job..that explains the cloud now :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-62687764476137605072012-06-21T10:34:58.888+05:302012-06-21T10:34:58.888+05:30very nice one ... exactly what i was looking aroun...very nice one ... exactly what i was looking around forAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-88469814964026466112012-05-05T17:45:54.188+05:302012-05-05T17:45:54.188+05:30very nice and useful article...Well explained...th...very nice and useful article...Well explained...thanks...Sankarnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-50868865788927604662012-04-28T11:35:27.188+05:302012-04-28T11:35:27.188+05:30very useful blogvery useful blogMaheshhttp://www.blogger.com/profile/02008964233767779919noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-28874921200844033052012-04-06T12:20:04.891+05:302012-04-06T12:20:04.891+05:30It seems to me that the banks do not confuse/cheat...It seems to me that the banks do not confuse/cheat/mislead/ creatively account (whatever you call it) at the time of setting the first EMI, but during their EMI re-set. Like, if the rate is changed in year 5, they calculate the EMI keeping the original Principal in the equation. In fairness, at that point, the outstanding Principal must be considered to calculate the increased RoI. <br /><br />Paying the increased RoI on Principal already paid seems like inethical, if not outright criminal. <br /><br />What say?Vidooshakhttp://www.yahoo.comnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-51701461312710999042012-03-31T22:00:28.950+05:302012-03-31T22:00:28.950+05:30Thx it is very useful for me as I am planning for ...Thx it is very useful for me as I am planning for a business loan - hope its the same for home loan and personal loanDharmendra Asimihttp://blog.dharmendraasimi.comnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-8946123051615862252012-03-04T14:47:12.584+05:302012-03-04T14:47:12.584+05:30Ranjit,
Phenomenal blog!!
BTW, I see a common erro...Ranjit,<br />Phenomenal blog!!<br />BTW, I see a common error in the way banks calculate monthly interest rates for monthly reducible balance loans. This is shown in my blog post (http://nitinchowdhary.blogspot.in/2012/03/home-loan-woes.html). My view is that the banks are taking us for a ride. Would love to hear your views about it.<br />Regards<br />NitinNitin Chowdharyhttp://www.blogger.com/profile/07129525474421519094noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-91468012691602257722012-01-05T16:12:37.364+05:302012-01-05T16:12:37.364+05:30Tarun, you have answered your own question: you...Tarun, you have answered your own question: you're <br />paying interest on the original amount and that<br />amount is your total due - so it remains the<br />principal in the EMI calculation. The fee that you<br />paid is an additional expenditure.Ranjit Mathewhttp://www.blogger.com/profile/04429610992943896537noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-81668153280659684732012-01-05T16:04:34.657+05:302012-01-05T16:04:34.657+05:30Dear Mathew,
I just wanna to enter bcoz indirect...Dear Mathew, <br /><br />I just wanna to enter bcoz indirectly I am getting 900000/- Rs. after deducting 10% (100000/-) from loan amount on disbuersmen. so I am utilizing 9 Lac rs. and paying interest fo 10 Lac and again repayment would be the same for 10 Lac rs. ... so i wanted to calculated the acutal Rate of Int. ... so please if u suggest me the way how we can delute 10% cost into the loan... <br /><br />ThanksTarun K Groverhttp://www.blogger.com/profile/02117140675108842875noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-23763279414081153742011-12-31T16:47:32.561+05:302011-12-31T16:47:32.561+05:30Tarun, if the amount you're talking of is a fe...Tarun, if the amount you're talking of is a fee,<br />why would it enter into the EMI calculations?Ranjit Mathewhttp://www.blogger.com/profile/04429610992943896537noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-63290706831541761122011-12-30T23:52:05.566+05:302011-12-30T23:52:05.566+05:30Hi Mathew,
I got your blog ref from http://emical...Hi Mathew,<br /><br />I got your blog ref from http://emicalculator.net/, in this they are showing Loan Amount, Interest and Loan Term.. What will be the formula fee we will include the 4th factor i.e. One time charges or Processing fee which is paid to DSA or bank on disbuersment or upfront <br />i.e. Loan Amount is 1000000/-, Rate of Int. is 6% PA, Term is 10 Yrs.and one time charges i paid is 10% of loan Amount <br /><br />Please help me to delute these excess 10% in loan term<br /><br />Thanks<br />- TarunTarun K Groverhttp://www.blogger.com/profile/02117140675108842875noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-91392152604606626902011-10-27T00:04:44.037+05:302011-10-27T00:04:44.037+05:30thanks...thanks...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-89785456465645345252011-10-12T17:03:37.059+05:302011-10-12T17:03:37.059+05:30Sir, Can you suggest calculation for insurance lin...Sir, Can you suggest calculation for insurance linked deposit scheme..<br />;) :) couldn't resist trolling you !<br /><br />The formula is fantastic, I've linked this to my expression editor and running 100s of calculations fine tuning all along. <br />thanks esp for the mathematical formatting. the effort is greatly appreciated. thanks !Sudinoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-36844351745570800302011-09-17T19:36:53.952+05:302011-09-17T19:36:53.952+05:30Excellent post Mathews!!...In the world where ther...Excellent post Mathews!!...In the world where there thousands of automated EMI calculators on the web, people (even if engineers) seem less bothered about going to the core of the issue. Uve done an excellent job! Cheers! :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-69049796425879334882011-09-16T12:44:00.459+05:302011-09-16T12:44:00.459+05:30pls calculate this p=30000 r-13%, 1.1/2 years mean...pls calculate this p=30000 r-13%, 1.1/2 years means 18 monthsmeenahttp://www.blogger.com/profile/06008345368069162464noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-7521816610044472502011-09-02T08:02:02.055+05:302011-09-02T08:02:02.055+05:30Here is a free EMI calculator. Really easy to use....Here is a free EMI calculator. Really easy to use.<br /><br /><a href="http://www.emicalculator.in" rel="nofollow">http://www.emicalculator.in</a>Amithttp://www.emicalculator.innoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-40999328869887733152011-08-01T16:59:42.687+05:302011-08-01T16:59:42.687+05:30Hari, see my reply to Sudarshan above:
http://rmat...Hari, see my reply to Sudarshan above:<br />http://rmathew.blogspot.com/2006/06/calculating-emis.html?showComment=1296530171942#c8398810267596404099Ranjit Mathewhttp://www.blogger.com/profile/04429610992943896537noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-85234126933490607942011-08-01T16:22:31.847+05:302011-08-01T16:22:31.847+05:30Hi Mathew,
First of all, thanks a ton for your ve...Hi Mathew, <br />First of all, thanks a ton for your very usefull blog. For quite a long time, I have been searching the net to find out the calculation method of Housing Loan EMI. And your explanation was the best of all! Thank you very much.<br />.<br />Buddy, I have a complex situation here.. (should not be complex to you :-) <br />I took a housing loan on Nov 1, 2009 of Rs.12,800,000 @ 9% PA for 15 years. And my EMI was 12983. And still I am paying the same EMI - 12983. However, recently I came to know that my loan tenure has been increased from 180 months to 255 months. When I contacted the bank, I was told about the following change of interest made to my loan. <br />1. On 01-11-2010, rate increased to 9.50%<br />2. On 01-02-2011, rate increased to 10.50%<br />3. On 01-05-2011, rate increased to 10.75%<br />4. On 01-08-2011, rate increased to 11.75%<br />.<br />Could you please tell me if extension of loan tenure to 255 months, is correctly done by the Bank ? And if possible, could you pls explain me how the bank has done the calculation ?<br />.<br />Thank you very much..<br />Harikrishna<br />kghareesh@gmail.comHarikrishna Gopinathhttp://www.blogger.com/profile/15310929385279583714noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-70081836035241830222011-06-21T17:30:35.721+05:302011-06-21T17:30:35.721+05:30Emi formula explained by mathew is superb.
I was w...Emi formula explained by mathew is superb.<br />I was wondering How the Emi was calculated.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-30391126507697177742011-04-26T06:38:31.052+05:302011-04-26T06:38:31.052+05:30Anonymous: The formula given here calculates the
E...Anonymous: The formula given here calculates the<br />EMI payable in arrears, that is, what is due at<br />the end of each month. You'll get the same answer<br />from the site you referred to if you select the<br />"EMI in Arrears" option (not the default "EMI in<br />Advance" option).rmathewhttp://www.blogger.com/profile/04429610992943896537noreply@blogger.comtag:blogger.com,1999:blog-17482943.post-47598141092645211262011-04-25T21:36:19.171+05:302011-04-25T21:36:19.171+05:30For my car loan the finance guy in the showroom ca...For my car loan the finance guy in the showroom calculated EMI as, Rs.6572 for 200,000 principal amt with 36 months of tenure at 11.25%.<br /><br />I called to bank guys and for the same above data they've calculated EMI as, Rs.6510<br /><br />I got confused and searched and came here and Rs.6572 is matching as per the formula.<br /><br />I followed other link "http://www.carwale.com/finance/calculateemi.aspx" and to my surprise for the above input data EMI is, Rs.6510 which is matching with bank guys calculation<br /><br />which is correct????????????????Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17482943.post-48009650386053298572011-04-25T12:22:25.137+05:302011-04-25T12:22:25.137+05:30Matthew thanks for making it so simple!!!Matthew thanks for making it so simple!!!mybloghttp://www.blogger.com/profile/15569517021160168826noreply@blogger.com