EMI calculator
Monthly instalment on a reducing balance, with the full schedule and the total interest you will actually pay.
Loan details
Rs 29,205 a monthover 15 years, at 11.5% reducing
What it costs
| Principal | Rs 25,00,000 |
|---|---|
| Total interest | Rs 27,56,854 |
| Total payable | Rs 52,56,854 |
If the same number were quoted flat
| Interest, flat | Rs 43,12,500 |
|---|---|
| Difference | Rs 15,55,646 |
| Month | Payment | Interest | Principal | Balance |
|---|
An estimate of the arithmetic, not an offer. Banks add service charges, insurance and processing fees that are not in this calculation, and the rate on most Nepali loans is variable. Ask your bank for the full schedule before you sign.
Reducing balance against flat rate
On a reducing balance, interest each month is charged on what you still owe. As the balance falls, the interest part of your instalment falls and the principal part grows, which is why the schedule above starts out almost all interest and ends almost all principal.
A flat rate charges interest on the original amount for the whole term, no matter how much you have already repaid. The number sounds smaller and costs more. A 10% flat rate is roughly equivalent to 17 or 18% reducing on a typical term, which is why some vehicle and retail lenders prefer to quote it. The comparison above shows the gap for the figures you entered.
The formula
The instalment is the standard annuity payment, where P is the principal, i the monthly rate (annual ÷ 12 ÷ 100) and n the number of months: EMI = P·i·(1+i)^n / ((1+i)^n − 1). The final instalment here absorbs the rounding drift so the balance lands exactly on zero rather than a few paisa either side, which is what banks do too.
What moves the total most
Term, more than rate. Lengthening a loan lowers the monthly figure and raises the total sharply, because you are borrowing the same money for longer. Try the same amount over 120 and 240 months and compare the total interest rather than the instalment.
Planning engineering fees in instalments?
BE programs at ICE are paid on a semester-by-semester schedule. The fees and scholarships page shows the current structure, what is included, and how merit scholarships affect the total — before any instalment arithmetic makes sense.
Common questions
- Is this Loan EMI calculator page free to use?
- Yes. Every Kaamko tool is free, with no sign-up, no account and no usage limit. They are published by Imperial College of Engineering, a Tribhuvan University-affiliated engineering college in Tathali, Bhaktapur, and are not funded by advertising.
- Does what I type get sent anywhere?
- No. This tool runs entirely in your browser: the calculation happens on your own device, nothing you type is uploaded, and nothing is stored after you close the page.
- Where do the figures come from?
- Each tool names its source on the page, along with the date that source was read. Where a rate or a slab is provisional — announced in a budget speech but not yet gazetted, for instance — the page says so rather than presenting it as settled.
- Who maintains these tools?
- Imperial College of Engineering, formerly Janakpur Engineering College, in Tathali, Bhaktapur, Nepal. Corrections are welcome by phone on 01-5091616 or through the contact page, and a figure reported as wrong is checked against its published source rather than adjusted on request.
Last checked by Imperial College of Engineering. Rates, slabs and formulas are re-checked against their published source on this date.