EMI calculator, with the amortization most hide.
Monthly installment, total interest, and the year-by-year split showing exactly when your EMIs stop feeding the bank and start feeding your equity.
On Rs 80.0 lakh at 9% for 20 years, the EMI is Rs 71,978. You repay Rs 1.73 crore in total — 54% of every rupee you hand the bank is interest.
| Year | Principal paid that year | Interest paid that year |
|---|---|---|
| 1 | Rs 1.5 lakh | Rs 7.1 lakh |
| 2 | Rs 1.6 lakh | Rs 7.0 lakh |
| 3 | Rs 1.8 lakh | Rs 6.8 lakh |
| 4 | Rs 2.0 lakh | Rs 6.7 lakh |
| 5 | Rs 2.1 lakh | Rs 6.5 lakh |
| 6 | Rs 2.3 lakh | Rs 6.3 lakh |
| 7 | Rs 2.6 lakh | Rs 6.1 lakh |
| 8 | Rs 2.8 lakh | Rs 5.8 lakh |
| 9 | Rs 3.1 lakh | Rs 5.6 lakh |
| 10 | Rs 3.4 lakh | Rs 5.3 lakh |
| 11 | Rs 3.7 lakh | Rs 5.0 lakh |
| 12 | Rs 4.0 lakh | Rs 4.6 lakh |
| 13 | Rs 4.4 lakh | Rs 4.2 lakh |
| 14 | Rs 4.8 lakh | Rs 3.8 lakh |
| 15 | Rs 5.3 lakh | Rs 3.4 lakh |
| 16 | Rs 5.8 lakh | Rs 2.9 lakh |
| 17 | Rs 6.3 lakh | Rs 2.3 lakh |
| 18 | Rs 6.9 lakh | Rs 1.8 lakh |
| 19 | Rs 7.5 lakh | Rs 1.1 lakh |
| 20 | Rs 8.2 lakh | Rs 40,674 |
Amortization, year by year
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | Rs 1,49,817 | Rs 7,13,920 | Rs 78,50,183 |
| 2 | Rs 1,63,871 | Rs 6,99,866 | Rs 76,86,312 |
| 3 | Rs 1,79,243 | Rs 6,84,494 | Rs 75,07,070 |
| 4 | Rs 1,96,057 | Rs 6,67,680 | Rs 73,11,013 |
| 5 | Rs 2,14,449 | Rs 6,49,288 | Rs 70,96,564 |
| 6 | Rs 2,34,565 | Rs 6,29,172 | Rs 68,61,999 |
| 7 | Rs 2,56,569 | Rs 6,07,168 | Rs 66,05,429 |
| 8 | Rs 2,80,637 | Rs 5,83,100 | Rs 63,24,792 |
| 9 | Rs 3,06,963 | Rs 5,56,774 | Rs 60,17,829 |
| 10 | Rs 3,35,758 | Rs 5,27,979 | Rs 56,82,071 |
| 11 | Rs 3,67,255 | Rs 4,96,482 | Rs 53,14,817 |
| 12 | Rs 4,01,706 | Rs 4,62,031 | Rs 49,13,111 |
| 13 | Rs 4,39,388 | Rs 4,24,349 | Rs 44,73,723 |
| 14 | Rs 4,80,606 | Rs 3,83,131 | Rs 39,93,117 |
| 15 | Rs 5,25,690 | Rs 3,38,047 | Rs 34,67,427 |
| 16 | Rs 5,75,003 | Rs 2,88,733 | Rs 28,92,423 |
| 17 | Rs 6,28,943 | Rs 2,34,794 | Rs 22,63,481 |
| 18 | Rs 6,87,942 | Rs 1,75,795 | Rs 15,75,539 |
| 19 | Rs 7,52,476 | Rs 1,11,261 | Rs 8,23,063 |
| 20 | Rs 8,23,063 | Rs 40,674 | Rs 0 |
Estimate only. A real loan adds processing fees, and Nepali home-loan rates float with the bank's base rate, so the EMI resets over the tenure. Early years are mostly interest — the chart shows exactly when that flips.
How the math works
The EMI is set so that n equal payments exactly retire the loan: EMI = P × r × (1+r)^n / ((1+r)^n − 1). Inside each payment the split shifts every month — interest is charged on the outstanding balance, so a young loan pays mostly interest and an old loan mostly principal. The stacked chart above makes the crossover year visible for your exact inputs, and the amortization table gives the balance after any year, which is the number you need when weighing a balance transfer or prepayment.
The two levers that actually move the total
Rate matters, but tenure is the quiet multiplier: the same principal at the same rate costs dramatically more interest over 25 years than 15, because the balance survives longer. Before accepting the longest tenure the bank offers for the smallest EMI, run both and look at the "total you repay" line — then read the prepayment guide below, because the cheapest interest is the interest a prepaid rupee never accrues.
Frequently asked
- How is EMI calculated in Nepal?
- Every Nepali bank uses the same reducing-balance formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r the monthly rate (annual rate ÷ 12), and n the number of months. Each EMI first pays the month's interest on the outstanding balance; the remainder reduces the principal. That is why early EMIs are mostly interest and late ones mostly principal.
- Why does the total interest look so large?
- Because the balance stays high for years. On a 20-year loan the first years' EMIs barely dent the principal, so interest accrues on nearly the full amount again and again. Depending on rate and tenure, total interest can approach or exceed the principal itself — the split bar above shows the share for your inputs. Shortening tenure raises the EMI but collapses the interest total.
- Will my EMI stay the same for the whole tenure in Nepal?
- Usually not. Most Nepali home and auto loans are floating-rate: the rate is the bank's base rate plus a premium, and the base rate moves with the market each quarter. When it resets, the bank recomputes your EMI (or tenure). The calculator shows the picture at one rate; rerun it at a couple of points higher to see what a reset does to the monthly bill.
- Does paying the loan off early save the interest?
- Prepayment removes principal, and every removed rupee stops accruing interest for all the remaining years, so early prepayments save the most. Nepal Rastra Bank rules restrict prepayment penalties on smaller loans, which strengthens the case. The prepayment guide linked below runs the prepay-vs-invest comparison with current Nepali numbers.
- What loan sizes and rates does this calculator suit?
- Any reducing-balance loan: home, auto, two-wheeler, personal, or education. Set the amount, the quoted annual rate, and the tenure. What it does not model is the fee stack around the loan — processing fees, insurance, valuation — or a 'flat rate' quote, which is a different and more expensive convention sometimes used for hire purchase; the linked guides cover both traps.
The numbers behind the sliders
A calculator gives you the shape of the decision; these guides give you the current Nepali numbers to feed it.
- Home loan EMI math in NPRThe formula, NRB's LTV cap, floating resets, and prepayment math in one guide.
- How much home loan can you get on your salary?The two gates banks apply and a salary-to-loan table.
- Should you prepay your home loan early?Why a 9% loan prepaid is a guaranteed 9% return, and when to do it.
- Car loan in Nepal: down payment and the real monthly costThe 40%-down rule and the insurance-plus-tax costs the EMI hides.
- Two-wheeler EMI mathWhat a bike on loan really costs per month.
- The real cost of 'zero EMI' offersWhere the interest hides when the installment claims to be free.
Import your bank statements, watch the actual monthly surplus, and check it against the number you just slid to. Free, built for Nepali banks and wallets.
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