Loan & EMI
Calculator
Calculate your monthly payment, total interest, and see a full payment schedule for any loan — home, car, or personal.
| Month | EMI | Principal | Interest | Balance |
|---|
What is an EMI Calculator?
An EMI (Equated Monthly Installment) calculator is a free online tool that calculates your fixed monthly loan payment based on three inputs: your loan amount, the annual interest rate, and the loan tenure (repayment period). It tells you exactly how much you will pay every month — so you can plan your budget before taking any loan.
EMI calculators are one of the most used financial tools in Pakistan, with millions of monthly searches for terms like "car loan calculator Pakistan", "home loan EMI", and "personal loan calculator". Whether you are buying a house, financing a car, or taking a personal loan, knowing your EMI in advance is essential.
EMI Formula — How it Works
The standard EMI formula used by all banks is:
EMI = [P × R × (1+R)^N] ÷ [(1+R)^N – 1]
- P = Principal loan amount (e.g. PKR 10,00,000)
- R = Monthly interest rate = Annual rate ÷ 12 ÷ 100
- N = Loan tenure in months (e.g. 5 years = 60 months)
For example: A PKR 10,00,000 loan at 18% annual interest for 5 years gives R = 18/12/100 = 0.015, N = 60. EMI = [10,00,000 × 0.015 × (1.015)^60] ÷ [(1.015)^60 – 1] = PKR 25,393 per month.
Types of Loans in Pakistan
Home Loan / House Finance
Home loans in Pakistan are offered by major banks including HBL, MCB, UBL, Bank Alfalah, and Islamic banks like Meezan Bank and Bank Islami. The Government of Pakistan also runs the Mera Pakistan Mera Ghar (MPMG) scheme offering subsidised home loans. Typical tenure is 5–20 years with loan amounts from PKR 15 lakh to PKR 5 crore.
Car Loan / Auto Finance
Car loans in Pakistan are available from banks and car manufacturer finance arms (Pak Suzuki, Toyota, Honda). Typical tenure is 1–7 years. Down payment is usually 15–30% of the car value. Car loan interest rates range from 18–24% per annum.
Personal Loan
Personal loans are unsecured loans for any purpose — medical expenses, home renovation, education, or travel. They typically have higher interest rates (20–28%) and shorter tenures (1–5 years) than home or car loans, because there is no collateral.
Loan EMI Quick Reference — Pakistan (2025)
EMI estimates at 20% annual interest rate:
| Loan Amount | 3 Years EMI | 5 Years EMI | 7 Years EMI | 10 Years EMI |
|---|---|---|---|---|
| PKR 5,00,000 | PKR 18,597 | PKR 13,247 | PKR 10,592 | PKR 9,650 |
| PKR 10,00,000 | PKR 37,194 | PKR 26,494 | PKR 21,184 | PKR 19,300 |
| PKR 20,00,000 | PKR 74,388 | PKR 52,988 | PKR 42,368 | PKR 38,600 |
| PKR 50,00,000 | PKR 1,85,970 | PKR 1,32,470 | PKR 1,05,920 | PKR 96,500 |
Tips to Reduce Your EMI in Pakistan
- Make a larger down payment: A bigger upfront payment reduces the principal, which directly lowers your monthly EMI.
- Choose a longer tenure: Extending from 5 to 10 years reduces your monthly payment but increases total interest paid.
- Negotiate the interest rate: If you have a good credit history (ECIB score), you may qualify for a lower rate. Always compare rates from at least 3 banks.
- Consider Islamic banking: Meezan Bank and Bank Islami offer Shariah-compliant financing at competitive profit rates that may be lower than conventional interest rates.
- Prepay when possible: Making extra payments towards principal reduces your outstanding balance and can save significant interest over the life of the loan.
- Use the SBP's reduced rate schemes: The State Bank of Pakistan periodically offers subsidised financing for first-time home buyers and SMEs.
Frequently Asked Questions
EMI in Pakistan is calculated using the same formula used worldwide: EMI = [P × R × (1+R)^N] ÷ [(1+R)^N – 1]. P is the loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the tenure in months. Our calculator does this instantly — just enter your loan amount, interest rate, and tenure above.
At 20% annual interest over 5 years, the EMI on a PKR 10,00,000 (10 lakh) loan is approximately PKR 26,494 per month. You would pay PKR 15,89,640 in total — meaning PKR 5,89,640 as total interest. Use the calculator above to adjust the rate and tenure for your specific loan.
Home loan rates in Pakistan vary by bank and are linked to the State Bank of Pakistan's policy rate. As of 2025, Meezan Bank and Bank Islami typically offer competitive Islamic financing rates. The Government's Mera Pakistan Mera Ghar scheme offers heavily subsidised rates for first-time buyers. Always compare at least 3 banks and check with the bank directly for current rates.
Islamic loans (Diminishing Musharakah, Murabaha) are structured to be Shariah-compliant — they use profit/markup instead of interest (riba). The monthly payment amount is similar to a conventional loan. For many Pakistani Muslims, Islamic financing is preferred for religious reasons. In terms of cost, compare the total repayment amount (not just the monthly payment) from both options before deciding.
Most Pakistani banks allow EMI up to 40–50% of net monthly salary. At 20% interest over 5 years, the EMI on PKR 20,00,000 is approximately PKR 52,988/month. To qualify, you typically need a net monthly salary of PKR 1,06,000–1,32,000. Exact salary requirements vary by bank — consult your bank for their specific eligibility criteria.
Also try our other free tools
BMI, calorie calculator, age calculator — all free on Fasturious.