About EMI
An EMI (Equated Monthly Instalment) is the fixed amount you repay each month on a loan, covering both interest and principal. Early payments are mostly interest; later ones mostly principal — which is why the amortization schedule matters as much as the EMI itself. This calculator computes the standard formula used by banks everywhere: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), and lays out the year-by-year schedule.
How to use it
- Enter the loan amount in any currency — NPR, INR, USD, it's just a number.
- Enter the yearly interest rate your lender quotes, and the tenure in years or months.
- Press Calculate EMI to see the monthly payment, total interest, total repayment and the interest share of everything you'll pay.
- Open the amortization schedule to watch the balance fall year by year.
Reading the numbers
- Longer tenure lowers the EMI but raises total interest — often dramatically. Compare a 15 vs 25-year term before signing.
- Even small rate differences compound: on a large home loan, half a percent can equal years of EMIs.
- Many loans allow prepayment; paying extra early hits the principal when interest is highest.
- Results here assume a fixed rate and are for planning — your bank's exact figures can differ slightly with fees and rounding. This is information, not financial advice.
Frequently asked questions
What formula does the EMI calculator use?
The standard banking formula: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r the monthly interest rate and n the number of months. It's the same math behind home, auto and personal loan EMIs worldwide.
Does it work for Nepali banks (NPR)?
Yes — it's currency-neutral, so enter amounts in NPR, INR, USD or anything else. Just use the annual interest rate your bank quotes.
Why is total interest so high on long loans?
Interest accrues on the outstanding balance every month, and long tenures keep that balance high for years. The amortization table makes this visible — compare a 15- and 25-year tenure and watch the interest column.
Are these figures exactly what my bank will charge?
They'll be very close, but banks add processing fees, insurance and their own rounding rules. Use this for comparison and planning, and get the official schedule from your lender before signing — this is information, not financial advice.