Loan EMI Calculator

What is EMI?

EMI (equated monthly instalment) is the fixed amount you pay every month to repay a loan. Each instalment has two parts: markup (interest or profit) and principal. In the early years most of the instalment goes to markup; later, more of it reduces the loan itself. The year-by-year table shows this.

How it is calculated

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months. For example, Rs. 5,000,000 for 10 years at 14% a year gives an EMI of about Rs. 77,600.

Home, car and personal loans in Pakistan

Most bank and Islamic bank financing in Pakistan is linked to KIBOR (the interbank rate) plus a spread, so the rate can change during the loan, usually once a year. Use the bank's current rate here for an estimate, and run it again with a higher rate to see how much your instalment could rise. Islamic banks call the cost "rent" or "profit" instead of interest, but the monthly amount can be estimated the same way.

Before you sign

• Ask for the full repayment schedule and the total amount you will pay over the loan.
• Check processing fees, insurance, and charges for paying early or paying late.
• Keep the instalment within what you can pay comfortably even if the rate rises.

This is an estimate. The bank's own schedule is final.