EMI Calculator
About the EMI Calculator
How to use it
1. Enter the loan amount in taka. 2. Enter the annual interest rate and the tenure in years. 3. Read your monthly EMI, total interest and total payment. 4. Expand the yearly plan and the monthly schedule to see exactly how each payment splits into principal and interest.
How the math works
This uses the reducing-balance method — the standard in Bangladesh for home, car and personal loans: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). Every payment first covers that month's interest on the remaining balance, and the rest reduces the principal. That's why early payments are interest-heavy.
Why the interest share matters
On a 10-year loan at 9%, roughly a third of everything you pay is interest. Longer tenures lower the monthly EMI but raise total interest — use the calculator to compare before choosing a bank's offer.
Flat-rate loans differ
Some microfinance and informal lenders use flat interest (interest on the full amount for the whole term), which costs about twice as much as the same-sounding reducing rate. Always ask which method a lender uses.