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Nepal EMI Calculator

HomeFree ToolsEMI Calculator

Choose a loan type, set your amount, interest rate and tenure, and the tool returns your monthly EMI, the total interest over the whole loan, and a year-by-year amortisation schedule — all on the reducing-balance basis that Nepal's banks use.

Loan details

Rs.
Rs. 1 LakhRs. 5 Crore
%
1%25%
yrs
1 year30 years
Move the sliders to watch the EMI change instantly.
Monthly EMI
—
per month · reducing-balance method
—
Interest
Principal Total interest
Principal
—
Total interest
—
Total payable
—
P : I ratio
—

Year-by-year amortisation

In the early years of any loan, most of each EMI goes towards interest, and the principal only starts to fall away quickly later on. The table below traces how the outstanding balance moves year by year for the numbers you entered above — handy when you are weighing up a part-prepayment or a change of tenure.

YearOpening balanceEMI paidPrincipalInterestClosing balance

How this calculator works

This tool works out EMIs for the five loan products Nepalese borrowers meet most often — home, vehicle, personal, business and education loans — on the reducing-balance method that every commercial bank in the country relies on. It is a general-purpose loan calculator and does not assume any fixed statutory rate, so you can plug in whatever figure your lender quotes.

  • Ready-made presets for home, vehicle, personal, business and education loans
  • Reducing-balance formula — the standard right across Nepal's banks
  • Complete year-wise schedule that splits each year into principal and interest
  • Live sliders that recalculate the instant you drag them
  • Runs entirely in your browser — nothing you type is sent anywhere

Typical rate bands in Nepal

Loan typeIndicative rate (p.a.)
Home loan8% – 13%
Vehicle loan10% – 15%
Personal loan12% – 18%
Business loan9% – 14%
Education loan7% – 12%

These ranges are indicative only. The rate any lender offers reflects its own spread over the Nepal Rastra Bank base rate and can shift from one quarter to the next.

Frequently asked questions

Banks across Nepal apply the reducing-balance formula EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r is the monthly rate (the annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments (years × 12). Because interest is charged on the balance still outstanding rather than the original sum, the interest slice of each payment keeps shrinking as you repay.

Home loan rates in Nepal commonly fall between 8% and 13% a year. The figure a lender quotes depends on the Nepal Rastra Bank base rate plus the spread that bank adds on top, so comparing two or three offers before you commit is genuinely worthwhile.

Home loans usually run up to 20–25 years (240–300 instalments). Vehicle loans tend to cap around 5–7 years, personal loans at 1–5 years and education loans near 5–10 years. A longer tenure lowers each monthly EMI but increases the total interest you pay over the life of the loan.

A common guideline is that banks let the EMI take up to 50–60% of your net monthly income. On a take-home of Rs 1,00,000 that suggests an EMI ceiling of roughly Rs 50,000–60,000. Work backwards from that limit using this calculator to see the loan amount your income comfortably covers.

A flat rate keeps charging interest on the full original principal for the entire tenure, making the real cost of borrowing far higher than the headline number suggests. Reducing balance — the method Nepal's banks and this calculator use — charges interest only on the amount you still owe, so the interest portion of every instalment falls steadily as you repay.

No. The figure here is the pure principal-and-interest instalment. Real loan agreements may add life or property insurance premiums, a one-off processing fee and other charges, so the amount your bank debits each month can be a little higher than the EMI shown.

No. The whole calculation runs in JavaScript inside your browser. Nothing is uploaded, logged or saved, and every figure disappears the moment you close the tab.

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