Loan EMI Calculator (Pakistan)
Estimate your monthly installment for a car loan, home loan, or personal loan.
Monthly EMI:
Total Payment (Principal + Interest):
Total Interest Payable:
How This EMI Calculator Works
This calculator uses the standard reducing-balance EMI formula that most Pakistani banks apply to car loans, home loans, and personal loans:
EMI = P × r × (1+r)n ÷ ((1+r)n − 1)
Where P is your loan amount (principal), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly installments (years × 12). Under this method, each installment is the same amount, but the proportion going toward interest is higher in early months and toward principal is higher later in the loan term.
Car Loan vs. Home Loan vs. Personal Loan in Pakistan
Interest rates and terms differ significantly by loan type. Car loans (auto financing) in Pakistan are typically offered for 1-7 years, home loans (house financing) can extend to 20-25 years, and personal loans are usually shorter-term (1-5 years) with comparatively higher rates since they're typically unsecured. Rates also move with the State Bank of Pakistan's policy rate, so it's worth checking current rates directly with banks before applying.
Frequently Asked Questions
How is EMI calculated in Pakistan?
EMI is calculated using the reducing-balance formula shown above, which is the method most Pakistani commercial banks use for auto and home financing.
Does this calculator work for Islamic (Shariah-compliant) financing?
This tool uses the conventional reducing-balance formula. Islamic financing products like Ijarah or Diminishing Musharakah are structured differently (profit-rate based rather than interest-based), though the resulting monthly payment can look similar. Confirm the exact schedule with your Islamic bank.
What documents do banks need for a car or home loan in Pakistan?
Typically your CNIC, income proof (salary slips or bank statements), an employment certificate, and — for home loans — property documents. Exact requirements vary by bank and loan type.