Skip to content
Reducing Balance Amortization Engine

Loan EMI & Amortization Calculator

Accurate Equated Monthly Installment (EMI) calculations for Home Loans, Auto Loans, and Commercial Mortgages in Nepal. Visualize your principal vs interest ratio and export your year-by-year amortization schedule.

Rs.
%
4.0% (Subsidized) 10.0% (Average Base Rate) 20.0%
1 Year 15 Years 30 Years
Monthly EMI Rs. 0
Total Interest Rs. 0
Total Payment Rs. 0
Payoff Date Nov 2046
Breakdown of Total Payment Interest: 54.2%
Monthly Due Rs. 46,607 240 Installments
Principal Rs. 5,000,000 (45.8%)
Total Interest Rs. 6,185,574 (54.2%)

Prepayment Tip: Adding just NPR 5,000 to your monthly EMI cuts over 4 years off your loan tenure and saves approximately NPR 1,200,000 in compound interest!

Amortization Repayment Schedule

Detailed breakdown of principal reduction, interest charged, and remaining balance over time.

Year Opening Balance EMI (Installment) Principal Repaid Interest Paid Closing Balance

Nepal Commercial Banking Loan Directives & Base Rate Guidelines

Commercial banks and financial institutions in Nepal regulate interest rates and retail credit portfolios following Nepal Rastra Bank (NRB) unified circulars. Understanding key banking mechanisms empowers borrowers to secure favorable loan terms:

Base Rate + Risk Spread

Nepali banks calculate borrowing rates as: Interest Rate = Bank Quarterly Base Rate + Fixed Spread (Risk Premium). As liquidity fluctuates, base rates shift quarterly, directly updating your monthly interest obligation.

50% FOIR Debt Ceiling

Fixed Obligation to Income Ratio (FOIR) must generally remain under 50% of the applicant's verified gross monthly salary/rental income. Ratios under 40% are rated as prime credit profiles.

Reducing Balance Method

Unlike flat-rate informal lending, banks charge interest strictly on the remaining outstanding principal. As each month's principal gets paid off, future interest charges compound downwards.