Does it work for Islamic financing?

Yes — use the bank's published profit rate in place of the interest rate. Murabaha and Diminishing Musharaka schedules follow the same monthly installment structure.

Should I choose a longer tenure for a lower EMI?

A longer tenure makes the monthly payment easier but increases total interest. Pick the shortest tenure where the EMI still leaves room in your monthly budget.

What is the ideal EMI-to-income ratio?

Keep all EMIs combined under 40% of your monthly take-home income. Beyond that, your finances become fragile to any income shock.

Can I prepay the loan?

Most banks allow prepayment, sometimes with a small fee. Prepaying reduces the outstanding principal, which cuts the total interest you pay over the life of the loan.

Finance

Loan EMI Calculator

Estimate monthly installments for car or house loans.

Enter details

EMI based on reducing balance method

Loan amount

PKR

Interest rate (per year)

Tenure

years

Result

Monthly EMI

PKR 23,790

Total interest

PKR 427,396

Total payable

PKR 1,427,396

Yearly amortization schedule

Year	Principal	Interest	Balance
1	PKR 145,193	PKR 140,287	PKR 854,807
2	PKR 168,533	PKR 116,946	PKR 686,274
3	PKR 195,625	PKR 89,854	PKR 490,649
4	PKR 227,073	PKR 58,406	PKR 263,576
5	PKR 263,576	PKR 21,903	PKR 0

How it works

This uses the standard reducing-balance EMI (Equated Monthly Installment) formula used by banks in Pakistan.

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

P = Principal loan amount
r = Monthly interest rate = annual % / 12 / 100
n = Total months = years × 12

Your inputs:

P = PKR 1,000,000
r = 15% / 12 = 1.2500% per month
n = 5 years × 12 = 60 months

Total interest = EMI × n − P. Each month's interest is computed on the outstanding balance, and the rest of the EMI reduces the principal — which is shown in the amortization table.

Overview

What is the Loan EMI Calculator?

The Loan EMI Calculator works out your fixed monthly installment (Equated Monthly Installment) for a home loan, car loan, or personal loan. Enter the loan amount, interest rate, and tenure to see the EMI, total interest paid, and total amount payable.

It helps you decide how much loan you can comfortably afford, compare offers from different banks, and understand the long-term cost of borrowing before you sign any agreement.

Step-by-step

How to use this calculator

1Enter the principal loan amount you want to borrow.
2Enter the annual interest rate offered by the bank or lender.
3Enter the loan tenure in years or months.
4Click Calculate to see your EMI, total interest, and total repayment amount.
5Adjust the tenure or amount to find an EMI that fits your monthly budget.

Methodology

How it works

EMI is calculated using the standard amortisation formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of months.

Each EMI has two parts: interest and principal. In the early months most of your EMI goes toward interest. As the principal shrinks, the interest portion gets smaller and more of the EMI repays the principal.

Total interest = (EMI × n) − P. A longer tenure lowers the EMI but increases total interest paid. A shorter tenure does the opposite.

FAQ