Loan calculator and EMI calculator
Enter the amount, the yearly rate and the term into this loan calculator to see the monthly payment, the total interest and every repayment. Add a flat rate to see what it equals on the reducing balance. Worked out in your browser: nothing you enter is sent anywhere.
Enter the amount, the rate and the term to see the monthly payment.
How the loan calculator works
What is an EMI?
EMI stands for equated monthly instalment: the fixed amount you pay each month until the loan is cleared. Each payment covers the interest on what you still owe plus a slice of the amount borrowed. Early payments are mostly interest, and later ones are mostly principal. The schedule below the result shows the split month by month.
What is the difference between a flat rate and a reducing rate?
A reducing rate charges interest on the balance you still owe, so the interest falls as you pay the loan down. A flat rate charges interest on the full amount borrowed for the whole term, as if you never paid anything back. Some lenders quote a flat rate. For the same percentage, a flat rate costs much more than a reducing rate.
Why does the equivalent reducing rate matter?
It puts a flat quote and a reducing quote on the same footing. A flat rate of 6% over 12 months on AED 100,000 means a payment of AED 8,833.33 a month, which is the same payment you would make at about 10.90% a year on the reducing balance. Enter both the reducing rate and a flat rate to compare, or enter only a flat rate with the amount and term to see what it equals.
How is the monthly payment worked out?
The yearly rate is divided by 12 to give a monthly rate, and the standard instalment formula spreads the loan evenly over the number of months. With a rate of 0, the payment is simply the amount divided by the months. Amounts are held in fils, the hundredth part of a dirham, and rounded to the nearest fils. Each month's interest and principal are rounded to the fils so that the rows add up to the totals and the balance ends at exactly 0.00. A payment in the schedule can differ from the monthly figure by 0.01.
Can I use it as a home loan or mortgage calculator?
Yes, for the monthly payment and interest at a fixed rate. Enter the amount, the yearly rate and a term of up to 40 years. A real mortgage can carry fees, insurance or a rate that changes over time, which this estimate leaves out.
Is this an offer or a quote?
No. It is an estimate from the figures you enter. A real loan can carry fees, insurance, a different way of counting days, or a rate that changes over time, so the figures a lender gives you can differ. Check the lender's own written terms before you sign.
Is anything I type sent anywhere?
No. Every sum is worked out in your browser on this page, and nothing you enter leaves your device.
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