EMI calculator
EMI calculator
50 lakh
- Principal
- 50,00,000
- Total interest
- 41,74,376
- Total paid
- 91,74,376
Monthly instalment (EMI): Rs 38,227. Total interest: Rs 41,74,376.
Repayment by year
| Year | Principal | Interest | Owed after |
|---|---|---|---|
| Year 1 | 1,21,469 | 3,37,250 | 48,78,531 |
| Year 2 | 1,30,017 | 3,28,702 | 47,48,514 |
| Year 3 | 1,39,167 | 3,19,552 | 46,09,347 |
| Year 4 | 1,48,960 | 3,09,758 | 44,60,386 |
| Year 5 | 1,59,443 | 2,99,276 | 43,00,943 |
Frequently asked questions
How is an EMI worked out?
On a reducing balance: each month's interest is the yearly rate divided by 12, charged on what is still owed, and the rest of the instalment repays the loan. EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate and n the number of months. Rs 10 lakh at 10% for 5 years is Rs 21,247 a month.
How much can I borrow?
Type the instalment you can afford into the EMI field, and the loan amount changes to what it repays at that rate and term. Your bank also limits instalments to a share of your income; ask it for its limit.
What is the difference between a reducing balance and a flat rate?
A flat rate charges interest on the whole loan for the whole term, however much has been repaid. On Rs 10 lakh over 5 years, 10% flat is Rs 5 lakh in interest; 10% on a reducing balance is Rs 2.75 lakh. Ask which one a lender quotes before you sign.
What interest rate should I use?
The rate your bank offers. The calculator opens on 6.82%, the commercial banks' average rate on home loans in Bhadra 2083 (Nepal Rastra Bank). Banks price a loan as their base rate plus a premium, so a floating-rate EMI changes when the base rate does.
Does the EMI include fees and insurance?
No. It is the loan and its interest alone. A service charge, a valuation fee and any insurance the bank asks for are paid on top.