Loan EMI Calculator Sri Lanka

Enter the loan amount, annual rate, and term to estimate a fixed monthly instalment using the reducing-balance method. Review every month's principal, interest, and remaining balance in the amortization schedule.

Monthly instalment (EMI)

LKR 44,489

Total interest

LKR 669,334

Total payable

LKR 2,669,334

Monthly amortization schedule

Each payment first covers interest on the outstanding balance; the remainder reduces principal.

MonthPaymentPrincipalInterestBalance
1LKR 44,489LKR 24,489LKR 20,000LKR 1,975,511
2LKR 44,489LKR 24,734LKR 19,755LKR 1,950,777
3LKR 44,489LKR 24,981LKR 19,508LKR 1,925,796
4LKR 44,489LKR 25,231LKR 19,258LKR 1,900,565
5LKR 44,489LKR 25,483LKR 19,006LKR 1,875,082
6LKR 44,489LKR 25,738LKR 18,751LKR 1,849,344
7LKR 44,489LKR 25,995LKR 18,493LKR 1,823,348
8LKR 44,489LKR 26,255LKR 18,233LKR 1,797,093
9LKR 44,489LKR 26,518LKR 17,971LKR 1,770,575
10LKR 44,489LKR 26,783LKR 17,706LKR 1,743,792
11LKR 44,489LKR 27,051LKR 17,438LKR 1,716,741
12LKR 44,489LKR 27,321LKR 17,167LKR 1,689,420
13LKR 44,489LKR 27,595LKR 16,894LKR 1,661,825
14LKR 44,489LKR 27,871LKR 16,618LKR 1,633,954
15LKR 44,489LKR 28,149LKR 16,340LKR 1,605,805
16LKR 44,489LKR 28,431LKR 16,058LKR 1,577,374
17LKR 44,489LKR 28,715LKR 15,774LKR 1,548,659
18LKR 44,489LKR 29,002LKR 15,487LKR 1,519,656
19LKR 44,489LKR 29,292LKR 15,197LKR 1,490,364
20LKR 44,489LKR 29,585LKR 14,904LKR 1,460,779
21LKR 44,489LKR 29,881LKR 14,608LKR 1,430,898
22LKR 44,489LKR 30,180LKR 14,309LKR 1,400,718
23LKR 44,489LKR 30,482LKR 14,007LKR 1,370,236
24LKR 44,489LKR 30,787LKR 13,702LKR 1,339,450
25LKR 44,489LKR 31,094LKR 13,394LKR 1,308,355
26LKR 44,489LKR 31,405LKR 13,084LKR 1,276,950
27LKR 44,489LKR 31,719LKR 12,769LKR 1,245,231
28LKR 44,489LKR 32,037LKR 12,452LKR 1,213,194
29LKR 44,489LKR 32,357LKR 12,132LKR 1,180,837
30LKR 44,489LKR 32,681LKR 11,808LKR 1,148,156
31LKR 44,489LKR 33,007LKR 11,482LKR 1,115,149
32LKR 44,489LKR 33,337LKR 11,151LKR 1,081,812
33LKR 44,489LKR 33,671LKR 10,818LKR 1,048,141
34LKR 44,489LKR 34,007LKR 10,481LKR 1,014,133
35LKR 44,489LKR 34,348LKR 10,141LKR 979,786
36LKR 44,489LKR 34,691LKR 9,798LKR 945,095
37LKR 44,489LKR 35,038LKR 9,451LKR 910,057
38LKR 44,489LKR 35,388LKR 9,101LKR 874,669
39LKR 44,489LKR 35,742LKR 8,747LKR 838,926
40LKR 44,489LKR 36,100LKR 8,389LKR 802,827
41LKR 44,489LKR 36,461LKR 8,028LKR 766,366
42LKR 44,489LKR 36,825LKR 7,664LKR 729,541
43LKR 44,489LKR 37,193LKR 7,295LKR 692,347
44LKR 44,489LKR 37,565LKR 6,923LKR 654,782
45LKR 44,489LKR 37,941LKR 6,548LKR 616,841
46LKR 44,489LKR 38,320LKR 6,168LKR 578,520
47LKR 44,489LKR 38,704LKR 5,785LKR 539,817
48LKR 44,489LKR 39,091LKR 5,398LKR 500,726
49LKR 44,489LKR 39,482LKR 5,007LKR 461,244
50LKR 44,489LKR 39,876LKR 4,612LKR 421,368
51LKR 44,489LKR 40,275LKR 4,214LKR 381,093
52LKR 44,489LKR 40,678LKR 3,811LKR 340,415
53LKR 44,489LKR 41,085LKR 3,404LKR 299,330
54LKR 44,489LKR 41,496LKR 2,993LKR 257,834
55LKR 44,489LKR 41,911LKR 2,578LKR 215,924
56LKR 44,489LKR 42,330LKR 2,159LKR 173,594
57LKR 44,489LKR 42,753LKR 1,736LKR 130,841
58LKR 44,489LKR 43,180LKR 1,308LKR 87,661
59LKR 44,489LKR 43,612LKR 877LKR 44,048
60LKR 44,489LKR 44,048LKR 440LKR 0

Assumes monthly payments and a fixed reducing-balance rate. Processing fees, valuation charges, insurance, taxes, late fees, and future rate changes are excluded. Compare the lender's total amount payable and written offer, not only its headline rate.

Loan EMI formula

For a fixed reducing-balance loan the instalment is:

EMI=P×r×(1+r)n(1+r)n−1EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1}

Here PP is the principal, rr is the monthly interest rate, and nn is the number of monthly payments. At a zero rate, EMI is the principal divided by the number of payments.

How the loan EMI calculation works

The calculator treats the annual interest rate as a fixed nominal rate, converts it to a monthly rate, and spreads repayment across the number of months entered. Each equal instalment contains interest on the outstanding balance and a principal portion.

Because the balance falls after each payment, the interest portion normally decreases while the principal portion increases. This differs from a flat-rate quotation, where interest is calculated on the original principal.

Worked example for a Rs. 2 million loan

For Rs. 2,000,000 at 12% a year over 5 years, the estimated monthly instalment is Rs. 44,488.90. Over 60 payments, the estimated total is Rs. 2,669,333.72, including Rs. 669,333.72 in interest.

Monthly instalment by loan amount and tenure

Instalments at 15% a year, a mid-range rate for an unsecured personal loan in Sri Lanka at the time of review. Use it to get the shape of the numbers; your own rate is what the calculator above is for.

The pattern worth noticing is that stretching the term keeps cutting the instalment but by less and less. On Rs. 2,000,000, going from 5 to 7 years saves about Rs. 9,000 a month; going from 10 to 15 years saves only about Rs. 4,300 - while adding five more years of interest.

Estimated monthly instalment at 15% a year, by loan amount and term
Loan amount5 years7 years10 years15 years
Rs. 500,000Rs. 11,895Rs. 9,648Rs. 8,067Rs. 6,998
Rs. 1,000,000Rs. 23,790Rs. 19,297Rs. 16,133Rs. 13,996
Rs. 2,000,000Rs. 47,580Rs. 38,594Rs. 32,267Rs. 27,992
Rs. 3,000,000Rs. 71,370Rs. 57,890Rs. 48,400Rs. 41,988
Rs. 5,000,000Rs. 118,950Rs. 96,484Rs. 80,667Rs. 69,979
Rs. 10,000,000Rs. 237,899Rs. 192,968Rs. 161,335Rs. 139,959

What the interest rate costs you

The same Rs. 2,000,000 loan over 5 years, at rates spanning what Sri Lankan lenders quote for secured and unsecured borrowing. The instalment moves modestly; the total interest does not.

Between 8% and 24% the monthly payment rises by about 42%, but the interest paid over the loan more than triples. This is why negotiating the rate, or securing the loan against an asset to qualify for a lower one, is usually worth more than negotiating the term.

Rs. 2,000,000 over 5 years: instalment and total cost by interest rate
Annual rateMonthly instalmentTotal interestTotal payable
8%Rs. 40,553Rs. 433,167Rs. 2,433,167
10%Rs. 42,494Rs. 549,645Rs. 2,549,645
12%Rs. 44,489Rs. 669,334Rs. 2,669,334
15%Rs. 47,580Rs. 854,792Rs. 2,854,792
18%Rs. 50,787Rs. 1,047,211Rs. 3,047,211
20%Rs. 52,988Rs. 1,179,266Rs. 3,179,266
24%Rs. 57,536Rs. 1,452,156Rs. 3,452,156

Reducing balance versus flat rate

A quoted flat rate and a reducing-balance rate with the same percentage are not equivalent. Reducing-balance interest is charged on the remaining principal, while a basic flat-rate calculation uses the original loan amount.

  • Ask the lender whether the quoted rate is flat or reducing balance.
  • Compare the annual percentage rate or total amount payable, not only the headline rate.
  • Add processing fees, insurance, and other compulsory charges before comparing offers.
  • Recalculate if the rate can change during the loan term.

Costs not included in the EMI

The schedule models principal and interest only. A lender's written total can be higher or change over time.

  • Processing, documentation, legal, and valuation charges
  • Credit-life, mortgage, vehicle, or other required insurance
  • Taxes, stamp duties, or registration costs
  • Late-payment charges and early-settlement fees
  • Changes to a floating or periodically repriced interest rate

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Frequently asked questions

EMI (Equated Monthly Instalment) is the fixed amount you repay each month, covering both principal and interest over the loan term.

No. This is a guide based on a fixed reducing-balance rate. Banks may add processing fees, insurance and apply variable rates.

Using the annuity formula: the principal multiplied by the monthly rate and by (1 + monthly rate) raised to the number of months, divided by that same power minus one. The result is a level payment that fully clears the loan over the term. Every instalment covers the interest accrued on the outstanding balance first, and whatever is left reduces the principal.

It depends entirely on the rate and term. At 12% over 5 years it is about Rs. 44,489 a month; at 15% over 5 years about Rs. 47,580; and at 15% over 10 years about Rs. 32,267. The tables on this page set out the common combinations.

The monthly payment is lower, the loan is more expensive. A longer term spreads the same principal over more payments, so each one is smaller, but you pay interest for more years. On Rs. 2,000,000 at 15%, extending from 5 years to 15 cuts the instalment from about Rs. 47,580 to about Rs. 27,992 while roughly tripling the interest paid.

Reducing-balance interest is charged only on what you still owe, so it falls as you repay. Flat-rate interest is charged on the original amount for the entire term regardless of repayments. A flat rate is worth roughly double the same number quoted as reducing balance, so comparing a leasing company's flat rate against a bank's reducing-balance rate at face value will mislead you badly.

Because interest is charged on the outstanding balance, which is at its largest at the start. The instalment never changes, but its split does: early payments are mostly interest and later ones mostly principal. This is also why settling a loan early saves much less in the final years than people expect.

Usually the lender gives you a choice: keep the instalment and shorten the term, or keep the term and lower the instalment. Shortening the term saves considerably more interest. Check for an early-settlement or prepayment fee first, because some agreements charge one that offsets part of the saving.

No. It models principal and interest only. Processing, documentation, legal, and valuation charges, credit-life or mortgage insurance, taxes and stamp duty, and any late-payment or early-settlement fees all sit outside the instalment. Ask the lender for the total amount payable, which should include them.

This calculator assumes a fixed rate for the whole term. Many Sri Lankan loans are priced against AWPLR plus a margin and reprice periodically, which changes either your instalment or your remaining term at each reset. If your loan is variable, re-run the figures at the new rate each time it moves, and stress-test it a few points higher before committing.