Nepal EMI & Loan Calculator

Accurately calculate your monthly Equated Monthly Installment (EMI) for home, auto, or personal loans in Nepal based on current banking rates.

Loan Details

Yr
Mo

Monthly EMI

NPR 0

Principal Amount

NPR 10,00,000

Total Interest

NPR 0

Payment Breakdown

Total: NPR 0

Enter loan details to view chart

How is EMI Calculated in Nepal?

Equated Monthly Installment (EMI) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

The mathematical formula for calculating EMI is:

EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]
  • P stands for the Principal Amount (the original loan amount).
  • R stands for the Interest Rate calculated on a monthly basis (Annual Interest Rate / 12 / 100).
  • N stands for the Loan Tenure in months (Years × 12).

Banks in Nepal commonly offer home loans, auto loans, and personal loans with varying interest rates. Most commercial banks calculate interest on a daily reducing balance method, but the EMI remains fixed throughout the tenure unless the interest rate is floating and changes over time.

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