Loan EMI Calculator
Enter the loan amount, rate and term to see your monthly installment, the total interest you'll pay and how a flat rate compares with the real APR.
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Gulf banks often quote car and personal loans at a flat rate, which looks cheap — but the real cost (APR) is close to double. Always compare loans on APR.
Monthly installment (EMI)
1,864.3 AED
for 60 months
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | 18,245 AED | 4,127 AED | 81,755 AED |
| 2 | 37,328 AED | 7,415 AED | 62,672 AED |
| 3 | 57,288 AED | 9,827 AED | 42,712 AED |
| 4 | 78,164 AED | 11,322 AED | 21,836 AED |
| 5 | 100,000 AED | 11,858 AED | 0 AED |
How it works
Reducing-balance formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan, r the monthly rate and n the number of months. Interest falls each month as the balance shrinks.
The flat-rate trap
A flat rate charges interest on the full amount for the entire term. A 3.5% flat car loan over 5 years works out at almost 7% APR. Always ask the bank for the reducing (APR) rate before comparing offers.
Frequently asked questions
How is EMI calculated?
With the standard annuity formula on the reducing balance, or for flat-rate loans as (loan + loan × rate × years) ÷ months.
What is a good personal loan rate in the UAE?
Rates depend on your salary, employer and bank. Compare offers on APR (reducing rate), not the flat rate shown in adverts.
Can I settle my loan early?
Yes. In the UAE banks can charge an early settlement fee capped at 1% of the outstanding balance (max AED 10,000).