How is EMI calculated?
EMI = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r is the monthly interest rate (the annual rate ÷ 12 ÷ 100) and n is the number of months. The calculator above uses exactly that, and also shows the total interest and the total you will repay.
What is an EMI, in plain terms?
A fixed monthly payment that clears both interest and principal over the life of the loan. Early instalments are mostly interest; later ones are mostly principal. The amount never changes, but what it buys does — which is why the year-by-year breakdown is worth opening before you sign.
What interest rate should I use?
The one your bank has actually quoted you. Nepali home loan rates move through the year, differ between banks, and are usually a base rate plus a negotiated premium. A calculator that pre-fills "the current rate" is worse than useless to an agent, because a stale number stated confidently is what a client will remember.
What changes the monthly instalment most?
- Loan period. Stretching 10 years to 20 drops the instalment sharply and raises the total interest just as sharply. Both are shown above — look at them together.
- Interest rate. One percentage point on a 50 lakh loan over 15 years is a few thousand rupees a month, and several lakh over the life of the loan.
- Down payment. Nepali lenders finance a portion of the valuation, not the whole price, so the cash in hand decides the loan size before any of this applies.
What this calculator does not include
Service charges, insurance, valuation fees, and the difference between a fixed and a floating rate — all of which a Nepali bank will add to the picture. Use this to size a decision, then get the sanction letter.
Common questions
- How is home loan EMI calculated in Nepal?
- With the standard reducing-balance formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the annual rate divided by 12 and 100, and n is the number of months. Enter the amount, rate and period above.
- What is the EMI on a 50 lakh loan?
- It depends on the rate and the period — at 11.5% over 15 years it is roughly Rs 58,000 a month. Enter your own figures above for the exact instalment, total interest and repayment schedule.
- Does a longer loan period cost more?
- Almost always. A longer period lowers the monthly instalment and raises the total interest. Both figures are shown above so the trade-off is visible rather than implied.
- Why does this calculator not show current bank rates?
- Because they change, differ per bank and per borrower, and are usually negotiated. A quoted rate that turns out to be stale is worse for an agent than no number at all, so the rate is yours to enter.