EMI Calculator
Calculate your monthly loan installment (EMI), total interest, and total payment for home, car, or personal loans.
About the EMI Calculator
An EMI (Equated Monthly Instalment) is the fixed amount you pay a bank or lender every month until your loan is fully repaid. It is the single most important number to know before signing any home, car, bike, or personal loan agreement in Pakistan, because it determines how much of your monthly income goes to debt and for how long. This EMI calculator lets you see that figure instantly for any loan amount, interest rate and tenure.
The calculation follows the standard reducing-balance amortisation formula used by State Bank of Pakistan-regulated banks and non-bank finance companies. Interest is charged on the outstanding principal, not the original amount, which means early payments go mostly toward interest and later payments mostly toward principal. Understanding this is why comparing EMIs across banks can save you hundreds of thousands of rupees over a 10-year home loan.
When Pakistani banks quote a home finance rate, they usually offer KIBOR-based pricing — for example 'KIBOR + 3%'. The effective annual rate you enter should be the full percentage you will actually pay, not just the spread. Use your bank's stated effective rate, or the advertised rate for a car or personal loan, to get a realistic EMI figure rather than an optimistic one.
Use this calculator to experiment before you negotiate: increase the down payment to shrink the principal, lengthen the tenure to lower the monthly EMI (at the cost of more total interest), or shop between banks to find the lowest rate. A rule of thumb is that your total monthly debt payments should not exceed roughly 40–50% of your take-home income, so check your EMI against that before committing.
The results show your monthly EMI, the total amount you will repay (principal plus interest), and the total interest component. Keep these numbers when comparing bank offers — they reveal that a slightly higher rate over a long tenure costs far more than a small difference in the monthly figure suggests.
How to calculate your loan EMI
- 1
Enter the loan amount you plan to borrow — for example, the price of the car minus your down payment.
- 2
Enter the annual interest rate your bank has quoted, such as 12% for a car loan or 8.5% for a home loan.
- 3
Enter the loan tenure in months (a 5-year car loan is 60 months, a 20-year mortgage is 240 months).
- 4
Read your monthly EMI, total repayment and total interest instantly as the results update live.
Frequently Asked Questions
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.
How is EMI calculated?
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r the monthly interest rate, and n the number of months.
Does the EMI change if I pay a bigger down payment?
Yes — a larger down payment reduces the principal, which lowers both the monthly EMI and the total interest paid over the loan's life.
What is a good EMI-to-income ratio?
Most financial advisors suggest keeping all monthly debt payments — EMI, credit cards, and other loans — under 40–50% of your net monthly income. Lenders in Pakistan typically assess this ratio when approving your application.
Does a longer tenure reduce my EMI?
Yes, spreading the loan over more months lowers the monthly EMI, but it increases the total interest you pay because interest accrues for longer. Use this calculator to compare a shorter tenure with a slightly higher EMI against a longer tenure with a lower EMI.
Can I prepay my loan to reduce EMI?
Many banks allow partial or full prepayment, which reduces the outstanding principal and therefore the total interest. Check your bank's prepayment policy — some charge a fee, especially in the first years of a home loan.