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UAE Loan EMI Calculator

Work out the monthly payment, total interest and total cost of a personal, car or other loan. Choose flat rate or reducing balance to match what your bank quotes.

AED
How is the rate quoted?
If unsure, your loan offer says "flat" or "reducing".
Can you afford it? (optional)
The Central Bank sets a maximum debt burden of 50% of gross salary and regular income.
Monthly instalment
AED0.00
Number of payments
-
Total interest
-
Total you repay
-
policy

Estimate only. Excludes fees, insurance and early settlement charges. Your lender's figures apply.

How it is calculated

  • Reducing balance: EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months.
  • Flat rate: EMI = (P + P × annual rate × years) ÷ n. Interest is always charged on the full amount.
  • Total interest = EMI × n − P.

Examples

AED 100,000 at 6% reducing, 12 months
EMI AED 8,606.64, total interest AED 3,279.72
AED 100,000 at 5% flat, 3 years
EMI AED 3,194.44, total interest AED 15,000.00. The same 5% on a reducing balance would cost AED 7,895.23 in interest.

Frequently asked questions

What is an EMI?expand_more

EMI stands for equated monthly instalment: the fixed amount you pay each month until the loan is repaid. It covers interest and part of the amount you borrowed.

What is the difference between a flat rate and a reducing rate?expand_more

With a reducing (declining) balance rate, interest is charged each month on what you still owe, so it falls as you repay. With a flat rate, interest is charged on the original amount for the whole term, so it costs more. A 5% flat rate is much more expensive than a 5% reducing rate.

Which one does my bank quote?expand_more

It varies by lender and product. Some lenders quote a flat rate and others a reducing rate, and the same number means very different costs. Check your loan offer, which should state which it is, and if you are unsure ask the lender for the EMI and total repayment so you can compare offers fairly.

Does this include fees?expand_more

No. It covers interest and principal only. Processing fees, insurance and early settlement charges are extra. Ask your lender for the full cost of the loan.

How do I pay less interest?expand_more

Borrow for a shorter term, pay a larger down payment or borrow less, and compare lenders on the reducing-rate equivalent. A shorter term raises the monthly payment but lowers the total interest.

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Source

Standard loan amortisation formulas. The 50% debt burden ratio is from the Central Bank of the UAE Rulebook (Mortgage Loans, Article 3.1, which refers to its regulations on bank loans to individuals). Interest rates, fees and eligibility are set by your lender, so always read your loan offer and ask for the full cost of borrowing. Checked 2 October 2026.

Read the official text:Central Bank of the UAE Rulebook, Article 3 (Important Ratios)