Money & finance
Loan EMI Calculator
See the monthly instalment for a car, home, bike or personal loan, the total interest you will pay, and a year-by-year schedule of principal, interest and balance.
How to use the Loan EMI Calculator
- Enter the loan amount (price minus your down payment).
- Enter the yearly interest or markup rate.
- Enter the tenure in years or months.
- Read the EMI and scroll the schedule.
Formula
Example
A Rs 2,000,000 loan at 18% for 5 years has an EMI of about Rs 50,787. You pay about Rs 1,047,000 in interest over the loan.
How banks in Pakistan price loans
Most car, home and business loans in Pakistan are priced as KIBOR plus a spread, for example KIBOR + 3%. When KIBOR changes, floating-rate loans are repriced, usually every 6 or 12 months, and your instalment changes. Fixed-rate loans keep the same instalment but often start at a higher rate.
What else to budget for
- Processing fee and documentation charges
- Insurance, especially for car loans (often charged every year)
- Down payment, commonly 15–30% for car financing
- Late payment charges and early settlement fees
- Registration, token tax and tracker for vehicles
Shorter or longer tenure?
A longer tenure lowers the monthly instalment but you pay much more markup in total. Try 3, 5 and 7 years in the calculator and compare the total interest line before you decide.
Paying off early
Extra payments go straight to the principal and cut the markup you pay later. Ask your bank about prepayment charges first, because some loans charge a fee for partial or full early settlement.
Read the guide
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Frequently asked questions
Will my bank show the same instalment?
It should be close. Banks may add insurance, processing fees or use a floating KIBOR-based rate that changes over time.
Does this work for Islamic financing?
The monthly rental in Islamic car or home financing is usually calculated in a similar way, but the contract terms are different. Use this as an estimate and confirm with your bank.
What is the EMI on Rs 20 lakh for 5 years at 15%?
About Rs 47,580 a month. Total markup over five years is about Rs 8.5 lakh. Enter your own figures for an exact schedule.
How much loan can I get on my salary?
Many banks keep all instalments under about 40–50% of your take-home pay. Use the calculator to find the loan size whose instalment fits that limit.
Results are estimates for planning. For tax, legal or religious decisions, confirm with a qualified person. Your inputs stay in your browser and are not sent to Soft2Cloud.