Loan Calculator
Calculate the monthly payment, total interest and full amortization schedule for any loan in Pakistan.
About the Loan Calculator
The Loan Calculator gives you a clear, instant answer to a question that usually means digging through tables or guessing — enter your numbers and read the result straight away.
Whether it is a home, car, bike or personal loan, the two numbers that matter are the monthly installment (EMI) and the total interest over the loan's life. This Loan Calculator computes both from the loan amount, rate and tenure, using the standard reducing-balance formula used by Pakistani banks.
The calculation applies the annual rate monthly to the outstanding balance, so early payments are mostly interest and later payments mostly principal — exactly how banks structure the repayment. The amortisation table shows this month by month.
KIBOR-based pricing is common for home loans in Pakistan: banks quote 'KIBOR + spread', and the effective rate you enter should be the full rate you will actually pay. Getting this right is the difference between a realistic EMI and a misleading one.
Use the tool to test scenarios before you commit: a larger down payment, a shorter tenure, or a better rate. Keep your total monthly debt payments under roughly 40–50% of take-home income, and compare the total-interest column across banks — that is where the real money is saved.
Bookmark the Loan Calculator for the next time you need it, and explore the rest of GuruAlpha's 1,200+ calculators for related everyday maths.
How to calculate your loan EMI
- 1
Enter the loan amount (principal) in PKR.
- 2
Enter the annual interest rate your bank quoted.
- 3
Enter the tenure in months.
- 4
Read your EMI, total payment and total interest, plus the full amortisation table.
Frequently Asked Questions
What interest rate should I use for a personal loan in Pakistan?
Personal loan rates in Pakistan currently range roughly 17–23% depending on your bank and relationship. Use the KIBOR-linked rate from your bank's offer for the most accurate estimate.
What is an EMI?
EMI (Equated Monthly Installment) is the fixed monthly amount you pay a lender until the loan is fully repaid, including interest.
Does a longer tenure reduce my monthly payment?
Yes — spreading the loan over more months lowers the monthly payment, but increases total interest because interest accrues longer. Compare tenures before choosing.
What is KIBOR and how does it affect my loan?
KIBOR is the Karachi Interbank Offered Rate — the benchmark Pakistani banks use to price floating-rate loans. A loan quoted as 'KIBOR + 3%' reprices as KIBOR moves, so your EMI can change over the loan's life.
Should I choose a shorter or longer tenure?
A shorter tenure means a higher EMI but far less total interest. A longer tenure lowers the EMI but multiplies the interest — compare both with this calculator before deciding.