Loan & EMI Calculator Pakistan — Calculate Monthly Installment

Calculate your monthly loan installment (EMI) for any Pakistani bank. Works for personal loans, car loans, home loans and business loans. Shows total interest paid and complete payment breakdown.

🏦 Loan / EMI Calculator — Instant Free Calculator

Loan Amount (PKR)

Annual Interest Rate (%)

Loan Tenure (years)

Monthly EMI

📐 Loan / EMI Calculator Formula

EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]

P = Principal loan amount | r = Monthly interest rate (Annual rate ÷ 12 ÷ 100) | n = Total months

The EMI (Equated Monthly Installment) formula uses compound interest calculation to determine a fixed monthly payment that covers both the principal and interest over the loan tenure. This is the standard formula used by all banks in Pakistan including HBL, UBL, MCB, Meezan Bank and Bank Alfalah.

Each monthly payment is split between interest and principal repayment. In early months, a larger portion goes toward interest. Over time, more of each payment reduces the principal — this is called loan amortization.

📋 How to Calculate Loan / EMI Calculator Manually

1
Get the loan amount (Principal) — the amount you want to borrow in PKR.
2
Find the annual interest rate from your bank. Convert to monthly rate: Annual Rate ÷ 12 ÷ 100.
3
Determine the loan tenure in months — multiply years by 12.
4
Apply the EMI formula: EMI = P × r × (1+r)^n ÷ [(1+r)^n - 1]
5
Multiply EMI by total months to get total amount payable. Subtract principal to get total interest.

Bank	Loan Type	Approx Rate 2025	Max Amount
HBL	Personal Loan	20–25%	Rs. 4 million
UBL	Cash Finance	21–26%	Rs. 3 million
MCB	EasyCash	20–24%	Rs. 2 million
Meezan Bank	Car Finance (Halal)	18–22%	Rs. 5 million

📊 Calculation Example

📋 Example — Personal Loan

Loan Amount: PKR 500,000

Annual Rate: 22% → Monthly rate = 22 ÷ 12 ÷ 100 = 0.01833

Tenure: 3 years = 36 months

EMI: 500,000 × 0.01833 × (1.01833)³⁶ ÷ [(1.01833)³⁶ - 1]

Result: Monthly EMI ≈ PKR 19,100

Total paid: 19,100 × 36 = PKR 687,600 | Interest = PKR 187,600

❓ Frequently Asked Questions

What is EMI in Pakistan?+

EMI stands for Equated Monthly Installment — a fixed monthly payment you make to repay a bank loan. It includes both principal repayment and interest. EMI is used for personal loans, car loans, home loans and credit cards in Pakistan.

What is a good interest rate for a loan in Pakistan?+

In 2025, personal loan rates range from 20–26% per year at Pakistani banks. Islamic financing (Meezan Bank, Bank Alfalah Islamic) offers Murabaha financing at slightly lower effective rates and without conventional interest (riba).

How to reduce EMI on a loan?+

You can reduce EMI by: 1) Increasing the loan tenure (more months) 2) Making a larger down payment 3) Negotiating a lower interest rate 4) Making partial prepayments to reduce principal. Note that longer tenure means more total interest paid.

Can I calculate loan EMI for car purchase in Pakistan?+

Yes! Enter the car loan amount (after down payment), the annual rate from your bank, and tenure in years. For example, a Rs. 3,000,000 car loan at 20% for 5 years gives approximately Rs. 79,500 monthly EMI.

What is the difference between EMI and monthly installment?+

EMI and monthly installment mean the same thing in the context of bank loans. Both refer to the fixed amount paid each month that includes both interest and principal components as calculated by the standard amortization formula.

Loan & EMI Calculator Pakistan — Calculate Monthly Installment

📐 Loan / EMI Calculator Formula

📋 How to Calculate Loan / EMI Calculator Manually

📊 Calculation Example

❓ Frequently Asked Questions

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