Loan EMI Calculator
Work out the monthly instalment (EMI) on a loan in PKR, the total interest or profit you pay and a month-by-month repayment schedule. Use it for car, home, personal or business finance.
Amounts in PKR · Reducing-balance method · Last updated 28 October 2026
1. Loan amount
The amount you borrow, after any down payment.
2. Rate and term
Use the yearly rate your bank quotes. Islamic banks quote a profit rate instead of interest: enter it here for an estimate.
Enter a term from 1 month to 50 years and a rate up to 100%.
Monthly instalment
Estimate only. Your bank’s instalment can differ because of fees, insurance or takaful, the day count, rounding or a floating rate.
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How the EMI is worked out
- Monthly rate r = yearly rate ÷ 12 ÷ 100. Number of instalments n = term in months.
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount.
- Each month, interest = balance × r. The rest of the EMI repays the loan, so the balance falls and more of each instalment goes to the loan over time.
- Amounts are rounded to the paisa. The last instalment is adjusted so the balance ends at zero.
Example: Rs 10,00,000 at 12% a year for 12 months is an EMI of Rs 88,848.79. You repay about Rs 10,66,185 in total, so the interest is about Rs 66,185.
Islamic financing
Islamic banks offer car and home finance through contracts such as Murabaha, Ijarah and Diminishing Musharakah, with a profit rate instead of interest. If you enter the profit rate, the calculator gives an estimate of the monthly payment. The actual instalments, fees and takaful are set by the bank’s contract, so ask your bank for its schedule.
Fixed or floating rate
Many loans in Pakistan use a floating rate linked to KIBOR, so the instalment can change when the rate is reset. This calculator assumes the rate you enter stays the same for the whole term. To see what a rate change would mean, run it again with the new rate.
Frequently asked questions
How is the EMI worked out?
With the standard reducing-balance formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate ÷ 12 ÷ 100 and n is the number of months. Each month, interest is charged only on the balance still owed.
Does it work for Islamic financing?
Islamic banks charge a profit rate under contracts such as Murabaha, Ijarah or Diminishing Musharakah, rather than interest. If you enter the profit rate, the calculator gives an estimate of the monthly payment. The actual instalments depend on your bank’s contract, fees and takaful.
Why does my bank show a different instalment?
Banks can add processing fees, insurance or takaful, use a different day count, round differently or use a floating rate that changes with KIBOR. Use this calculator to compare options, and ask your bank for its repayment schedule.
What is the difference between a flat rate and a reducing balance?
A flat rate charges interest on the full loan for the whole term, so the real cost is higher than the same reducing-balance rate. This calculator uses the reducing balance, where interest falls as you repay.
Is anything I type stored?
No. The calculator runs in your browser and does not save or send your loan details.
Estimate only. This calculator does not use any bank’s rates or terms. Fees, insurance or takaful, the day count, rounding and rate changes can make your bank’s figures different. Always check the repayment schedule your bank gives you.
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