Finance
Loan EMI Calculator
Estimate monthly installments for car or house loans.
Enter details
EMI based on reducing balance method
PKR
%
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.
FAQ
Loan EMI Calculator — FAQs
Common questions about the Loan EMI Calculator.
EMI uses the standard formula P × r × (1+r)^n / ((1+r)^n − 1), where P is principal, r is monthly interest rate, and n is total months.