EMI and interest calculator (Oman)
Updated
What is EMI and how is it calculated?
EMI means equated monthly instalment: the same payment every month that clears a loan's interest (or profit) and the amount borrowed by the last month. An OMR 10,000 loan at 6% over 60 months has an EMI of OMR 193.328 and costs OMR 1,599.681 in interest. 6% is CBO's ceiling on housing loans, personal loans and overdrafts against salary.
Official rule: CBO ceiling on the interest (or profit) rate of housing loans, personal loans and overdrafts against salary: 6% a year — CBO says the ceiling may change from time to time. (source, checked 2026-10-19)
- Everything you repay
- OMR 11,599.681
- Same loan as a flat rate
- 3.20% flat
Instalments on this page follow the standard monthly formula on the reducing balance. Your bank counts interest or profit day by day between the actual payment dates and rounds each amount, so its own schedule can differ slightly. Only your signed offer is binding.
Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.
Year-by-year schedule
| Year | Paid | Interest | Principal | Balance after |
|---|---|---|---|---|
| 1 | OMR 2,319.936 | OMR 551.905 | OMR 1,768.032 | OMR 8,231.968 |
| 2 | OMR 2,319.936 | OMR 442.856 | OMR 1,877.080 | OMR 6,354.888 |
| 3 | OMR 2,319.936 | OMR 327.082 | OMR 1,992.854 | OMR 4,362.034 |
| 4 | OMR 2,319.936 | OMR 204.167 | OMR 2,115.769 | OMR 2,246.265 |
| 5 | OMR 2,319.936 | OMR 73.671 | OMR 2,246.265 | OMR 0.000 |
What is an EMI (equated monthly instalment)?
An EMI is the fixed amount you pay every month on a loan. Each instalment pays the interest (or profit) due for that month on what you still owe, and the rest repays the loan itself — so early instalments are mostly interest and later ones mostly principal. CBO and banks in Oman call it the monthly instalment; many people search for it as "EMI" or "equated monthly installment".
The EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the amount borrowed, r the monthly rate (the yearly rate ÷ 12 ÷ 100) and n the number of months.
Worked example: OMR 10,000 at 6% for 60 months
- r = 6 ÷ 12 ÷ 100 = 0.005000
- (1 + r)60 = 1.348850
- EMI = 10,000 × 0.005000 × 1.348850 ÷ (1.348850 − 1) = OMR 193.328
- Total repaid OMR 11,599.681, of which OMR 1,599.681 is interest.
| # | Instalment | Interest | Principal | Balance after |
|---|---|---|---|---|
| 1 | OMR 193.328 | OMR 50.000 | OMR 143.328 | OMR 9,856.672 |
| 2 | OMR 193.328 | OMR 49.283 | OMR 144.045 | OMR 9,712.627 |
| 3 | OMR 193.328 | OMR 48.563 | OMR 144.765 | OMR 9,567.862 |
A longer term lowers the EMI — and raises the interest
| Term | EMI | Total interest |
|---|---|---|
| 48 months | OMR 234.850 | OMR 1,272.814 |
| 60 months | OMR 193.328 | OMR 1,599.681 |
| 72 months | OMR 165.729 | OMR 1,932.479 |
Flat rate vs reducing rate
A flat rate charges interest on the full amount for the whole term; a reducing rate only on what you still owe. The 6% reducing rate above equals only about 3.20% flat — so a flat rate always looks lower than it is. CBO requires the effective rate on the reducing balance — no flat rates — so the rate in your offer is already a reducing rate.
CBO's rules on the rate
- Highest rate: 6% a year on the reducing balance — CBO's ceiling on housing loans, personal loans and overdrafts against salary. An offer above it breaks CBO's rule.
- Credit cards against salary: at most 18% a year.
- Longest term: CBO's longest personal loan is 10 years (or until age 70 if earlier).
Interest on savings: simple vs compound
Simple interest is paid only on the amount you put in; compound interest is added to your savings and earns interest itself. OMR 10,000 at 4% a year for 5 years (an example rate) earns OMR 2,000.000 simple, OMR 2,166.529 added yearly, or OMR 2,209.966 added monthly. Islamic savings pay an expected profit instead of interest; the calculator works the same way with the rate you are quoted.
Which calculator next?
- Personal loan calculator Oman — one offer, with the real yearly rate incl. fees and CBO's limits.
- Car loan calculator · Housing loan instalment · How much can I borrow? · Paying off early
Questions people ask
What does EMI stand for?
Equated monthly instalment (often spelt "installment"): the same amount every month that repays a loan and its interest (or profit) by the end of the term.
How much interest will I pay in total?
EMI × number of months − the amount borrowed. For OMR 10,000 at 6% over 60 months: OMR 193.328 × 60 − OMR 10,000 = OMR 1,599.681.
Does a longer term lower my EMI?
Yes, but you pay more interest. OMR 10,000 at 6%: 60 months = OMR 193.328 a month and OMR 1,599.681 interest; 72 months = OMR 165.729 a month and OMR 1,932.479 interest.
What is the difference between a flat rate and a reducing rate?
A flat rate charges interest on the full amount for the whole term, a reducing rate only on what you still owe. A 6% reducing rate over 60 months is about 3.20% flat. CBO requires the effective rate on the reducing balance — no flat rates — so the rate in your offer is already a reducing rate.
What is the maximum interest rate on a loan in Oman?
6% a year on the reducing balance: CBO's ceiling on housing loans, personal loans and overdrafts against salary.
What is the difference between simple and compound interest?
Simple interest is paid only on the amount you put in; compound interest is added and earns interest itself. OMR 10,000 at 4% for 5 years (an example rate): OMR 2,000.000 simple, OMR 2,166.529 added yearly.
Is this EMI the same as my bank's instalment?
Close, but not always to the last decimal: the formula uses whole months, while banks count interest day by day between payment dates and round each amount. Only your signed offer is binding.