Pick a loan type, drag the sliders to your amount, rate and tenure, and the calculator hands back your monthly EMI, total interest over the life of the loan, and a year-by-year amortisation schedule — using the same reducing-balance method every commercial bank in Nepal applies.
Pick a preset and fine-tune the numbers
The first few years of any EMI are mostly interest; only later does the principal start to melt away meaningfully. The schedule below shows how the balance shifts year by year for the loan details above — useful when you're thinking about part-prepayment or a tenure switch.
| Year | Opening balance | EMI paid | Principal | Interest | Closing balance |
|---|
This tool estimates EMIs for the five loan products Nepalese borrowers encounter most often — home, vehicle, personal, business and education loans — using the reducing-balance method applied by every commercial bank in the country (NIC Asia, Nabil, Global IME, Himalayan Bank and the rest).
Quoted rates depend on each lender's spread over the Nepal Rastra Bank base rate and can change between quarters.
Every commercial bank uses the same reducing-balance formula: EMI = P × r × (1+r)n ÷ ((1+r)n − 1). P is the principal, r is the monthly rate (annual ÷ 12 ÷ 100), and n is the number of instalments (years × 12). Crucially, interest each month is charged on the outstanding balance — not on the original amount.
Home loans generally land in the 8% to 13% range per annum. Nepal Rastra Bank publishes a base rate and individual lenders add their own spread on top, so it pays to compare two or three quotes before picking a bank.
Rule of thumb: banks let the EMI take 50–60% of net monthly income. A Rs 1,00,000 take-home works out to roughly Rs 50,000–60,000 of EMI capacity — work backwards from that using the calculator to see what loan amount fits.
Most banks stretch home loans to 20–25 years. Vehicle loans tend to cap at 5–7 years, personal loans at 1–5 years, and education loans around 5–10 years. Pushing the tenure out lowers the EMI but you'll pay considerably more interest in total.
Flat rate charges interest on the original principal throughout the tenure, so the effective cost is far higher than the quoted rate suggests. Reducing balance — the method Nepal's banks use and what this calculator applies — charges interest only on what's still owed, so the interest portion of each EMI falls steadily as the loan is paid down.
