Loan EMI calculator
Work out the monthly instalment on a home, personal or car loan, what it costs in interest, and how the balance falls year by year.
Monthly instalment
৳11,122
- Loan amount
- ৳5,00,000
- Total interest
- ৳1,67,333
- Total you repay
- ৳6,67,333
Year by year
| Year | Interest paid | Loan repaid | Balance left |
|---|---|---|---|
| 1 | ৳55,822 | ৳77,645 | ৳4,22,355 |
| 2 | ৳45,974 | ৳87,492 | ৳3,34,862 |
| 3 | ৳34,878 | ৳98,589 | ৳2,36,274 |
| 4 | ৳22,374 | ৳1,11,092 | ৳1,25,181 |
| 5 | ৳8,285 | ৳1,25,181 | ৳0 |
How EMI is worked out
An EMI, or equated monthly instalment, is the same payment every month, and each one carries both interest and repayment of the loan. Banks in Bangladesh generally charge term loans on a reducing balance: interest each month is charged only on what is still owed. That is why early instalments are mostly interest and later ones mostly repay the loan, which the table above shows year by year.
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is the amount borrowed, r the monthly rate (the yearly rate divided by 12 and by 100), and n the number of monthly instalments.
Paying less interest
A shorter term raises the instalment but cuts the total interest sharply. Try it with the figures above. Paying part of the loan early cuts it further, but many banks charge a fee for early settlement, so read that clause before you sign.