Home Loan Interest Rate in Nepal Calculator

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Personal Loan EMI Calculator

Monthly EMI

$0.00

Total Interest

$0.00

Total Repayment

$0.00

Understanding Your Personal Loan EMI

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

How is Personal Loan EMI Calculated?

The formula used for calculating personal loan EMI is:

EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]

  • P = Principal loan amount
  • R = Monthly interest rate (Annual rate / 12 / 100)
  • N = Number of monthly installments (Tenure)

Example Calculation

If you borrow $10,000 for 24 months at an interest rate of 10% per annum:

  • Monthly Interest Rate (R) = 10 / (12 * 100) = 0.00833
  • Tenure (N) = 24
  • Monthly EMI = $461.45
  • Total Interest = $1,074.80
  • Total Payable = $11,074.80

Tips to Lower Your EMI

To reduce your monthly financial burden, consider the following strategies:

  1. Choose a Longer Tenure: Increasing the loan duration reduces the monthly EMI but increases the total interest paid.
  2. Improve Credit Score: A higher credit score often helps you negotiate a lower annual interest rate.
  3. Make Prepayments: If your bank allows it, making lump-sum payments towards your principal can significantly reduce your future EMIs or tenure.
function calculatePersonalLoanEMI() { var principal = parseFloat(document.getElementById("loanAmount").value); var annualRate = parseFloat(document.getElementById("interestRate").value); var tenureMonths = parseFloat(document.getElementById("loanTenure").value); if (isNaN(principal) || isNaN(annualRate) || isNaN(tenureMonths) || principal <= 0 || annualRate <= 0 || tenureMonths <= 0) { alert("Please enter valid positive numbers in all fields."); return; } var monthlyRate = annualRate / (12 * 100); // Formula: [P x R x (1+R)^N] / [(1+R)^N – 1] var emi = (principal * monthlyRate * Math.pow(1 + monthlyRate, tenureMonths)) / (Math.pow(1 + monthlyRate, tenureMonths) – 1); var totalRepayment = emi * tenureMonths; var totalInterestPayable = totalRepayment – principal; document.getElementById("monthlyEMI").innerText = "$" + emi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalInterest").innerText = "$" + totalInterestPayable.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalPayment").innerText = "$" + totalRepayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("emi-results").style.display = "block"; }

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