Loan Calculator — Monthly Instalment & Total Interest
Find the monthly instalment for a personal, car or house loan, plus how much interest you will pay over the whole loan.
Updated
For information only — not financial, tax or legal advice. Verify rates and figures with your bank, FBR or another official source before making decisions.
About this calculator
Enter the annual rate your bank quotes. In Pakistan, conventional loans are often priced as KIBOR + a margin, and Islamic banks quote a profit rate — the instalment maths is the same for an estimate.
Formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
r = annual rate ÷ 12 ÷ 100, n = months
This is the standard reducing-balance formula: each month interest is charged only on the amount still owed, so the interest part shrinks and the principal part grows over time.
Examples
Rs 20 lakh at 16% for 5 years
Monthly instalment: Rs 48,636 for 60 months
Rs 50 lakh car loan at 18% for 3 years
Monthly instalment: Rs 180,762 for 36 months
Rs 1 crore home loan at 14% for 20 years
Monthly instalment: Rs 124,352 for 240 months
Important information
- Floating-rate loans linked to KIBOR change when KIBOR resets, so your instalment can go up or down.
- Banks may add processing fees, insurance and other charges — ask for the full cost.
- Repaying early reduces total interest, but check for prepayment charges.
Frequently asked questions
How is a loan instalment calculated?
Using the reducing-balance (EMI) formula shown above, from the loan amount, monthly rate and number of months.
What is KIBOR?
The Karachi Interbank Offered Rate — the benchmark many Pakistani banks use for floating-rate loans. Your rate is usually KIBOR plus a fixed margin.
Does this work for Islamic financing?
It gives a good estimate. Islamic products (e.g. diminishing musharakah or ijarah) are structured differently but usually produce a similar monthly payment for the same profit rate.
How can I reduce total interest?
Borrow less, choose a shorter tenure, negotiate the rate, or make partial prepayments.
What is the difference between this and the EMI calculator?
They use the same formula. This one takes tenure in years and is geared to larger loans; the EMI calculator takes months.
Learn more
- Home Loans in Pakistan: How Instalments Work — How banks calculate home-loan instalments, why KIBOR resets change your payment, how much down payment you need, and how to cut the total interest.
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