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EMI / Loan Calculator

ইএমআই / লোন ক্যালকুলেটর

Work out your monthly loan instalment (EMI), total interest and total repayment.

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Interest rate is
Tenure is in

A whole number.

Your monthly EMI will appear here

Enter the loan amount, interest rate and tenure, then select Calculate EMI.

How EMI is calculated

This calculator uses the standard reducing-balance method. Interest is charged each month on the amount you still owe, and every instalment is the same size.

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

  • P is the loan amount (principal).
  • r is the monthly interest rate as a fraction: the yearly rate ÷ 12 ÷ 100, or the monthly rate ÷ 100.
  • n is the number of monthly instalments.

With a 0% rate the formula simplifies to EMI = P ÷ n. Total payment is EMI × n and total interest is total payment − P.

Worked example

A loan of ৳5,00,000 at 9% per year for 5 years: r = 9 ÷ 12 ÷ 100 = 0.0075 and n = 60. The EMI is ৳10,379 a month (10,379.18 before rounding). Over 60 months you pay ৳6,22,751, of which ৳1,22,751 is interest. In the first year about ৳82,915 goes to principal and ৳41,635 to interest, leaving ৳4,17,085 to repay.

How to use the calculator

  1. Enter the loan amount in Taka.
  2. Enter the interest rate and choose whether it is per year or per month, as in your loan offer.
  3. Enter the tenure as a whole number and choose years or months (up to 50 years).
  4. Select Calculate EMI. Open “See year-by-year breakdown” to see how much principal and interest you pay each year and what remains.

Flat rate vs reducing balance

With a reducing-balance loan, interest each month is worked out on the outstanding balance, which falls as you repay. With a flat-rate loan, interest is worked out on the original amount for the whole tenure and then spread over the instalments.

The same quoted percentage therefore costs more under a flat rate, because you keep paying interest on money you have already repaid. When comparing offers, check which method each lender uses and ask for the total amount payable.

What this calculator does not include

The result is an estimate based on the standard formula. It does not represent any specific bank’s or lender’s terms. Real EMIs can differ because of:

  • processing fees, insurance and other charges;
  • flat-rate loans, or rates that change during the loan;
  • how the lender rounds instalments, counts days or times the first payment;
  • grace periods and part-payments.

Always confirm the final figures in your loan agreement.

Frequently asked questions

What is an EMI?

EMI stands for equated monthly instalment: a fixed amount you pay every month until the loan is fully repaid. Each EMI covers that month’s interest first, and the rest reduces the amount you owe.

What is the difference between reducing-balance and flat-rate interest?

With reducing-balance interest, each month’s interest is charged only on what you still owe, so it shrinks as you repay. With a flat rate, interest is charged on the original loan amount for the whole tenure, so the same quoted percentage costs more in total. This calculator uses the reducing-balance method.

Will my bank’s EMI be exactly the same?

Not necessarily. Lenders may add processing fees, insurance or other charges, round instalments differently, use flat-rate or floating-rate terms, or change the rate during the loan. This is the standard formula and does not represent any specific bank’s terms. Always check the figures in your loan offer.

Why is so much of the early EMI interest?

Interest is charged on the outstanding balance, which is highest at the start. As principal is repaid the balance falls, so more of each later EMI goes towards principal. The year-by-year breakdown shows this shift.

Does a longer tenure make a loan cheaper?

It lowers the monthly EMI but increases the total interest, because you owe money for longer. Try different tenures to see the trade-off between a comfortable monthly amount and the total cost.

Can I enter a monthly interest rate?

Yes. Choose “per month” beside the rate. A yearly rate is divided by 12 to get the monthly rate. Make sure the unit matches your loan offer, as 1% per month is much higher than 1% per year.

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