Loan EMI calculator
Work out the monthly instalment (EMI) on a home, auto or personal loan in Nepal from the loan amount, annual interest rate and tenure — using the standard reducing-balance formula.
See the total interest you will pay, the total payable, and a year-by-year breakdown of how much goes to principal versus interest. An indicative tool, computed entirely in your browser.
Loan details
Principal you borrow, before any down payment.
Nominal yearly rate on a reducing balance.
180 monthly instalments.
Monthly EMI
Rs 28,415
Equal instalment for 180 months
Total payable
Rs 51,14,686
Principal
Rs 25,00,000
Total interest
Rs 26,14,686
Interest share
51.1%
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | Rs 69,409 | Rs 2,71,570 | Rs 24,30,591 |
| 2 | Rs 77,441 | Rs 2,63,538 | Rs 23,53,149 |
| 3 | Rs 86,403 | Rs 2,54,576 | Rs 22,66,747 |
| 4 | Rs 96,401 | Rs 2,44,578 | Rs 21,70,346 |
| 5 | Rs 1,07,557 | Rs 2,33,423 | Rs 20,62,789 |
| 6 | Rs 1,20,003 | Rs 2,20,976 | Rs 19,42,786 |
| 7 | Rs 1,33,889 | Rs 2,07,090 | Rs 18,08,897 |
| 8 | Rs 1,49,383 | Rs 1,91,596 | Rs 16,59,514 |
| 9 | Rs 1,66,669 | Rs 1,74,310 | Rs 14,92,845 |
| 10 | Rs 1,85,956 | Rs 1,55,023 | Rs 13,06,889 |
| 11 | Rs 2,07,475 | Rs 1,33,504 | Rs 10,99,414 |
| 12 | Rs 2,31,484 | Rs 1,09,496 | Rs 8,67,930 |
| 13 | Rs 2,58,271 | Rs 82,709 | Rs 6,09,660 |
| 14 | Rs 2,88,157 | Rs 52,822 | Rs 3,21,502 |
| 15 | Rs 3,21,502 | Rs 19,477 | Rs 0 |
An indicative estimate using the standard reducing-balance EMI formula. Nepali banks often quote a base rate plus premium and may reset the rate quarterly, so your actual EMI can change over the life of the loan. Service charges, insurance and any down payment are not included. Confirm the schedule with your lender.
From loan amount to monthly instalment
The EMI keeps your monthly payment fixed across the whole tenure, blending interest on the falling balance with a growing slice of principal.
Monthly rate
Convert the annual rate to a monthly one: r = rate ÷ 12 ÷ 100. The tenure becomes n monthly instalments.
The EMI formula
EMI = P · r · (1+r)ⁿ / ((1+r)ⁿ − 1). With a 0% rate it simplifies to the loan amount divided by the number of months.
Amortization
Each month, interest is charged on the balance and the rest of the EMI repays principal — summarised year by year above.
EMIs, answered
What is EMI and how is it calculated?+
EMI (Equated Monthly Instalment) is the fixed amount you repay each month, covering both interest and principal. It is calculated as EMI = P · r · (1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months. If the rate is zero, the EMI is simply P ÷ n.
Why does the interest portion fall over time?+
Nepali bank loans use a reducing-balance method: interest each month is charged on the outstanding balance, not the original amount. Because the EMI is fixed, early instalments are mostly interest while later ones are mostly principal, so the interest portion shrinks as the balance falls — as shown in the yearly amortization summary.
Does this match what my bank will charge?+
It is a close, indicative estimate using a fixed annual rate. In practice Nepali banks usually quote a base rate plus a premium and may revise the rate quarterly, which changes your EMI mid-loan. Service charges, loan insurance and any down payment are also not included here. Always confirm the final schedule with your lender.
Should I enter the tenure in years or months?+
Either works. Switch the tenure unit to years for a typical home or auto loan, or to months for shorter facilities. The calculator converts years to months internally (1 year = 12 instalments) before applying the formula.
How can I reduce my total interest?+
A shorter tenure raises the monthly EMI but sharply lowers total interest, since the balance is cleared faster. A lower interest rate or a larger down payment (reducing the principal) also cuts the total payable. Try different tenures and rates above to compare the total interest each option costs.
What interest rates are typical for loans in Nepal?+
Rates vary by bank, loan type and your credit profile, and move with the market. As a rough guide, home loans are often in the high single digits to low teens, auto loans a little higher, and unsecured personal loans higher still. Treat the preset chips as illustrative starting points and use your bank's quoted rate for an accurate figure.
Sources & data note
Based on the standard reducing-balance EMI formula, EMI = P·r·(1+r)ⁿ / ((1+r)ⁿ − 1). Interest rates, fees and reset rules vary by bank and loan type; many Nepali lenders quote a base rate plus premium and revise it quarterly. Figures here are indicative and exclude service charges, insurance and down payments — verify the current rate and schedule with your lender.