Quantitative Rigor
Calculation Methodology & Formulas
Mathematical precision verified across all 22 FinSetu calculators.
1. Reducing Balance Loan EMI Formula
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where P = Principal Loan Amount, R = Monthly Interest Rate (Annual Rate / 12 / 100), N = Loan Tenure in Months.
2. SIP Monthly Compounding Formula
M = P × ({ [ (1+i)^n - 1 ] / i }) × (1+i)
Where M = Future Value, P = Monthly Investment, i = Monthly Rate of Return, n = Total Months.