➡️ Use when you want to calculate how much you should invest monthly to achieve a specific wealth goal in the future.
Formula:
SIP = FV × r / ((1 + r)n – 1)
Where: FV = Target Future Value (Goal), r = Monthly Return Rate (Annual Rate ÷ 12), n = Total Number of Months
➡️ Use when you want to know how much monthly installment you’ll pay for a loan (car loan, personal loan, etc).
➡️ Use when you want to calculate monthly house payments based on loan amount, interest, and term.
Formula:
M = P × [ r(1+r)n ] ÷ [(1+r)n – 1]
Where: M = Monthly Payment, P = Principal Loan Amount, r = Monthly Interest Rate, n = Number of Payments
Formula:
EMI = [P × R × (1+R)N] ÷ [(1+R)N – 1]
Where: P = Loan Amount, R = Monthly Interest Rate, N = Number of Months
➡️ Use when you want to know how much your savings or investment will grow over time.
Formula:
A = P(1 + r/n)nt
Where: A = Final Amount, P = Initial Principal, r = Annual Interest Rate, n = Times Interest Applied per Year, t = Time in Years