Loan EMI Calculator Pakistan
See your monthly installment and the total you will pay back over the life of the loan.
PakistanQuick answer
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of months. A Rs 3,000,000 loan at 14% a year for 5 years costs about Rs 69,805 a month, Rs 1,188,285 in total interest.
KIBOR + your bank's margin.
Monthly installment
Rs 69,805
- Number of installments
- 60
- Total interest
- Rs 1,188,285
- Total payment
- Rs 4,188,285
Reducing-balance method. Excludes processing fees and insurance.
Monthly installment at 14% a year
| Loan amount | 3 years | 5 years | 7 years |
|---|---|---|---|
| Rs 1,000,000 | Rs 34,178 | Rs 23,268 | Rs 18,740 |
| Rs 2,000,000 | Rs 68,355 | Rs 46,537 | Rs 37,480 |
| Rs 3,000,000 | Rs 102,533 | Rs 69,805 | Rs 56,220 |
| Rs 5,000,000 | Rs 170,888 | Rs 116,341 | Rs 93,700 |
| Rs 10,000,000 | Rs 341,776 | Rs 232,683 | Rs 187,400 |
How it works
An EMI (equated monthly installment) stays the same every month. Early installments are mostly interest; later ones are mostly principal. The calculator uses the standard reducing-balance formula that Pakistani banks use for car and home financing.
Most bank loans in Pakistan are priced at KIBOR plus a margin, so the rate changes when KIBOR changes. Enter the current rate your bank quoted to get today's installment. Islamic banks quote a profit rate instead of interest, but the monthly payment works out the same way.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of months.
Does a longer tenure reduce my cost?
No. A longer tenure lowers the monthly installment but increases the total interest you pay.
Is processing fee or insurance included?
No. Banks also charge processing fees and, for car loans, insurance. Add those to the total separately.