EMI = [P × R × (1 + R)^N] / [(1 + R)^N – 1]
P = loan amount
R = monthly interest rate = annual interest rate ÷ 12 ÷ 100
N = total number of monthly installments
Example: if loan amount = 1,00,000, annual interest = 12%, tenure = 24 months
R = 12 ÷ 12 ÷ 100 = 0.01
EMI = [1,00,000 × 0.01 × (1.01)^24] / [(1.01)^24 – 1]
EMI ≈ 4,707
EMI can also be calculated using an online bike loan EMI calculator
EMI depends on loan amount, interest rate, and tenure