What is the formula required to estimate the EMI?

The formula required to estimate the EMI is [E = P * r * (1 + r)^n ] / [(1 + r)^n - 1]]. In this formula, the E is the EMI, and ‘P’ is the principal amount that you are planning to borrow, the ‘r’ is the rate of interest and the ‘n’ is the tenure of the car loan. 

Do not worry! You do not have to remember or enter this formula anywhere. The car loan EMI calculator is programmed to use this formula for estimating the EMI. Your contribution in the process simply involves entering the three variables.