Financial & Banking Algorithms

Bank Loan EMI & Monthly Installment Calculator

Calculate your exact monthly repayment for home loans, car loans, and personal credit across Bangladeshi commercial banks. Includes full amortization schedules and NBR-compliant DPS deposit return forecasting.

Loan Amount (BDT ৳) ৳ 1,500,000

Annual Interest Rate (% p.a.) Current BD average: 11.5% - 13.5%

Loan Tenure (Years) Total: 60 Months

Calculation Method

Reducing Balance (Standard EMI) Used by all scheduled commercial banks

Flat Rate Installment Used by select microfinance / consumer retail

Repayment Summary Monthly EMI

Monthly Installment Amount:

৳ 33,747

Principal Loan Amount: ৳ 1,500,000

Total Interest Payable: ৳ 524,820

Total Repayment (P + I): ৳ 2,024,820

Excludes 0.5% bank processing fee and VAT on processing charges.

Frequently Asked Questions

How is bank loan EMI calculated in Bangladesh?

Most scheduled commercial banks in Bangladesh calculate Equated Monthly Installment (EMI) using the reducing balance formula: EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is Principal Loan Amount, R is monthly interest rate (Annual Rate / 12 / 100), and N is number of monthly installments.

What is the current interest rate for personal and home loans in Bangladesh?

Following the deregulation of interest caps and the transition to market-based reference pricing under Bangladesh Bank monetary policy, retail home and personal loan rates typically range between 11.5% and 14.5% per annum depending on borrower creditworthiness and bank liquidity.

What is the source tax on DPS and FDR interest earnings in Bangladesh?

Under the National Board of Revenue (NBR) Income Tax Act 2023, bank interest earnings on Deposit Pension Schemes (DPS) and Fixed Deposit Receipts (FDR) are subject to a 10% source tax if the depositor provides a valid e-TIN and acknowledgment of return submission. Without proof of return submission, the withholding tax rate increases to 15%.