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# How to calculate EMI with a grace period?

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HP12C Platinum

I am trying to calculate the equated loan instalment for a loan with a grace period.  This can be done easily using MS Excel however I need to do the calculation using my HP12CP.

Details of the loan:

Principal  : 1 million

Int. Rate  : 12% p.a

Tenor       : 36 months

Grace period : 3 months

Payment frequency : monthly

Loan instalment calculated with Excel : 1st three months - zero; 4th to 36th month: 36,810/- per month

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Hello MilanH

May be this helps, if you work it out in two steps:

1)

n=3 grace period

ir/a=12%

pv=1 million

fmt=0.00

fv= -1030301.00 (- because you have to pay it back)

2)

n=33

ir/a = 12%

pv = 1030301.00

vf = 0.00

fmt = -36810.01 (- because you have to pay it )

I have no 12C, but if that kind of loan isn't built in, you can manage it this way.

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