Reducing-balance loan estimate
Sri Lanka Loan EMI Calculator – Monthly Payment & Interest
Calculate the monthly instalment, total interest, repayment time and amortization schedule for a housing, vehicle, personal or education loan in Sri Lanka.
Loan repayment calculator
Estimate your monthly loan payment
Enter the annual reducing-balance interest rate quoted by the lender. Rates, fees and insurance are not prefilled because they vary by bank, customer and product.
Reducing-balance estimate
Monthly payment and total borrowing cost
- Actual regular payment including extra
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- Interest saved by extra payments
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- Time saved by extra payments
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- Payment as share of entered income
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Year-by-year amortization
| Year | Principal paid | Interest paid | Closing balance |
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Calculation method
How reducing-balance EMI is calculated
The standard instalment uses the annuity formula with a monthly rate equal to the annual rate divided by 12. Each payment first covers interest on the outstanding balance; the remainder reduces principal. As the balance falls, the interest portion normally becomes smaller.
Compare the lender’s effective cost, not only the advertised rate
A flat rate and a reducing-balance rate with the same percentage are not equivalent. Processing charges, insurance, valuation fees, changing rates, penalties and payment timing can also change the real cost. Ask for the repayment schedule and effective annual rate before accepting a facility.
Common loan-calculator questions
Does an extra payment always shorten the loan?
Mathematically, applying an extra amount directly to principal reduces later interest and can shorten the term. A lender may impose limits, fees or a different allocation method, so confirm how overpayments are treated before using this result as a repayment plan.
Is the calculated EMI the amount a bank will approve?
No. Approval can depend on verified income, existing obligations, collateral, age, credit assessment and the lender’s policies. The optional income percentage is a comparison only, not an approval rule.