EMI and interest calculator (Qatar)
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 Islamic return) and the amount borrowed by the last month. A QAR 100,000 loan at 6.10% over 48 months has an EMI of QAR 2,353.09 and costs QAR 12,948.34 in interest. 6.10% is the highest rate QCB allows on a loan against salary today: the QCB lending rate of 4.60% + 1.5% (our sum of QCB's two numbers).
Official rule: Highest rate on a loan against salary: the QCB lending rate + 1.5% a year, on the reducing balance. (source, checked 2026-10-10)
- Everything you repay
- QAR 112,948.34
- Same loan as a flat rate
- 3.24% 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 | QAR 28,237.09 | QAR 5,470.48 | QAR 22,766.61 | QAR 77,233.39 |
| 2 | QAR 28,237.09 | QAR 4,042.22 | QAR 24,194.87 | QAR 53,038.53 |
| 3 | QAR 28,237.09 | QAR 2,524.36 | QAR 25,712.72 | QAR 27,325.80 |
| 4 | QAR 28,237.09 | QAR 911.28 | QAR 27,325.80 | QAR 0.00 |
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 Islamic return) 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. QCB and banks in Qatar 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: QAR 100,000 at 6.10% for 48 months
- r = 6.1 ÷ 12 ÷ 100 = 0.005083
- (1 + r)48 = 1.275556
- EMI = 100,000 × 0.005083 × 1.275556 ÷ (1.275556 − 1) = QAR 2,353.09
- Total repaid QAR 112,948.34, of which QAR 12,948.34 is interest.
| # | Instalment | Interest | Principal | Balance after |
|---|---|---|---|---|
| 1 | QAR 2,353.09 | QAR 508.33 | QAR 1,844.76 | QAR 98,155.24 |
| 2 | QAR 2,353.09 | QAR 498.96 | QAR 1,854.13 | QAR 96,301.11 |
| 3 | QAR 2,353.09 | QAR 489.53 | QAR 1,863.56 | QAR 94,437.55 |
A longer term lowers the EMI — and raises the interest
| Term | EMI | Total interest |
|---|---|---|
| 36 months | QAR 3,046.73 | QAR 9,682.17 |
| 48 months | QAR 2,353.09 | QAR 12,948.34 |
| 60 months | QAR 1,937.93 | QAR 16,276.01 |
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 6.10% reducing rate above equals only about 3.24% flat — so a flat rate always looks lower than it is. QCB requires adverts to state the annual rate on the daily (reducing) balance; if an offer quotes a flat rate, ask for the reducing rate.
QCB's rules on the rate
- Highest rate: 6.10% a year on the reducing balance — the highest rate QCB allows on a loan against salary today: the QCB lending rate of 4.60% + 1.5% (our sum of QCB's two numbers). An offer above it breaks QCB's rule.
- Longest term: QCB's longest loan against salary is 6 years for Qatari citizens and 4 years for residents.
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. QAR 10,000 at 4% a year for 5 years (an example rate) earns QAR 2,000.00 simple, QAR 2,166.53 added yearly, or QAR 2,209.97 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 Qatar — one offer, with the real yearly rate incl. fees and QCB's limits.
- Car loan calculator · Home finance 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 QAR 100,000 at 6.10% over 48 months: QAR 2,353.09 × 48 − QAR 100,000 = QAR 12,948.34.
Does a longer term lower my EMI?
Yes, but you pay more interest. QAR 100,000 at 6.10%: 48 months = QAR 2,353.09 a month and QAR 12,948.34 interest; 60 months = QAR 1,937.93 a month and QAR 16,276.01 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 6.10% reducing rate over 48 months is about 3.24% flat. QCB requires adverts to state the annual rate on the daily (reducing) balance; if an offer quotes a flat rate, ask for the reducing rate.
What is the maximum interest rate on a loan in Qatar?
6.10% a year on the reducing balance: the highest rate QCB allows on a loan against salary today: the QCB lending rate of 4.60% + 1.5% (our sum of QCB's two numbers).
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. QAR 10,000 at 4% for 5 years (an example rate): QAR 2,000.00 simple, QAR 2,166.53 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.