EMI Calculator
Loan instalment, interest and prepayment — for Nepal
What the loan actually costs: the monthly instalment, the full repayment schedule, what an extra payment would save you — and what a “flat rate” really works out to.
A free EMI calculatorusing the monthly reducing balance method that Nepali commercial banks apply to home, auto and personal loans. It shows the instalment, the total interest, and the month-by-month schedule — plus two things a bank's own calculator will not tell you: what prepaying would save, and the true reducing-balance cost of any flat rate you have been quoted.
Your loan
| # | Interest | Principal | Balance |
|---|---|---|---|
| 1 | 21,875.00 | 5,759.97 | 24,94,240.03 |
| 2 | 21,824.60 | 5,810.37 | 24,88,429.65 |
| 3 | 21,773.76 | 5,861.21 | 24,82,568.44 |
| 4 | 21,722.47 | 5,912.50 | 24,76,655.94 |
| 5 | 21,670.74 | 5,964.23 | 24,70,691.71 |
| 6 | 21,618.55 | 6,016.42 | 24,64,675.29 |
| 7 | 21,565.91 | 6,069.06 | 24,58,606.22 |
| 8 | 21,512.80 | 6,122.17 | 24,52,484.05 |
| 9 | 21,459.24 | 6,175.74 | 24,46,308.32 |
| 10 | 21,405.20 | 6,229.78 | 24,40,078.54 |
| 11 | 21,350.69 | 6,284.29 | 24,33,794.26 |
| 12 | 21,295.70 | 6,339.27 | 24,27,454.98 |
Notice how little of an early instalment reaches the principal. In year one, 78.1% of what you pay is interest — which is why prepaying early saves so much more than prepaying late.
Calculated on a monthly reducing balance, the basis Nepali commercial banks use for home, auto and personal loans. Your bank's figure may differ slightly depending on how it treats the first partial month, and service charges, insurance premiums and valuation fees are not included here. Ask for the sanction letter's own schedule before signing.
Knowing the EMI is easy. Remembering it is the hard part.
A free account tracks every EMI, rent payment and insurance premium with a reminder three days before it falls due, rolls recurring bills to their next cycle when you mark them paid, and shows what is overdue at a glance.
Loans and EMI — frequently asked questions
How is EMI calculated in Nepal?
Nepali banks use the monthly reducing balance method. The instalment is fixed, but the split changes: each month interest is charged only on the balance still outstanding, so early instalments are mostly interest and later ones are mostly principal. The formula is P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the annual rate divided by twelve and n is the number of months.
What is the difference between a flat rate and a reducing balance rate?
A flat rate charges interest on the full original loan amount for the whole term, even after you have repaid most of it. A reducing balance rate charges only on what you still owe. This makes flat rates sound far cheaper than they are — a 5.5% flat rate on a ten-year loan costs about the same as 9.46% on a reducing balance, roughly 1.7 times the quoted figure. Always ask which basis a quote uses.
Does paying extra on my EMI actually save money?
Yes, and considerably more than most people expect, because every extra rupee goes straight against the principal and stops earning interest for the rest of the term. On a 25 lakh loan at 10.5% over 15 years, paying an extra Rs 5,000 a month saves several lakh in interest and clears the loan years early. Check your sanction letter first, as many Nepali banks charge a prepayment fee.
Why is my early EMI almost all interest?
Because interest is charged on the outstanding balance, which is at its largest at the start. In the first year of a typical fifteen-year home loan, around 80% of each instalment is interest and only 20% reduces the principal. This is also why prepaying early saves far more than prepaying in the final years.
What is a typical home loan interest rate in Nepal?
Commercial bank home loan rates in Nepal have generally sat in the high single digits to low teens, moving with the base rate that Nepal Rastra Bank publishes and that each bank adds a premium to. Rates are revised periodically, so a quote from one bank is only comparable to another if both are on the same reducing balance basis and quoted for the same tenure.
Can I calculate EMI without sharing my details?
Yes. This calculator runs entirely in your browser — nothing is uploaded, no account is needed and no loan figures are stored or sent anywhere. Bank calculators often ask for a phone number before showing a result; this one does not.