I mentioned the formula used to calculate an EMI, but putting values in the formula and calculating it is a cumbersome task. So I did some research in Microsoft Excel and found out that it can done quite easily in excel.
EMI calculation in ExcelStep 1: Open the excel sheet and locate the fx button
Step 2: In the pop-up menu, click on Financial Catergory
Step 3: In the Function Name click 'PMT'
Step 4: A box will appear as shown, fill in the values mentioned and voila you get the EMI.
Interest Component of the EMI
- Just choose the IPMT function instead of PMT
Prinicpal Component of EMI
- Just choose the PPMT function instead of PMT