Use this free loan calculator Pakistan to work out your monthly EMI before you sign anything. It covers home loans, car loans, personal loans, bike loans, education loans and business loans, and it runs entirely in your browser, so no details are sent anywhere. Change the amount, the markup or profit rate and the tenure, and the calculator updates your monthly payment, total profit or interest, and total payment straight away.
Loan EMI Calculator
Rs 50,000 to Rs 2 crore. Move the slider or type an amount.Monthly EMI: Rs 0
Loan amount financed: Rs 0
Total interest: Rs 0
Total payment: Rs 0
EMI comparison across tenures
| Tenure | Monthly EMI | Total payment |
|---|
Amortisation schedule
| Month | EMI | Principal part | Interest part | Remaining balance |
|---|
Estimates only. Your bank will confirm the fin
How EMI works in Pakistan
EMI is your Equated Monthly Instalment, the fixed amount you pay every month until the loan is cleared. Pakistani banks use the reducing balance method. Each month, the bank charges markup or profit only on the balance still owed, then the rest of your EMI pays down the principal. That is why the interest part is largest in the early months and shrinks over time, while the principal part grows.
The formula is EMI = P times r times (1 plus r) to the power n, divided by ((1 plus r) to the power n minus 1), where P is the loan amount, r is the annual rate divided by 12 and divided by 100, and n is the tenure in months. A flat rate quote looks cheaper at first glance, but it charges interest on the full original amount for the whole tenure, so always compare reducing balance figures.
How to use this tool
- Choose your loan type. The rate fills in with a typical starting rate, and you can change it.
- Set the loan amount with the slider or type the exact amount in PKR.
- Set the tenure in years and, for a car or home loan, add any down payment.
- Add your monthly income if you want the affordability hint. An EMI up to 40 percent of income is the usual guide.
- Switch to Islamic finance to see the same figures labelled as profit or rent.
Current bank home-loan rates in Pakistan
Indicative rates checked on 12 November 2026. Banks in Pakistan price home loans as KIBOR plus a spread, so no bank publishes one fixed home-loan rate on its public pages. Confirm the final rate, fees and schedule with the bank before you apply.
| Bank | Indicative home-loan rate | How it is priced |
|---|---|---|
| HBL | About 14.5 percent | KIBOR-linked, variable |
| UBL | About 15 percent | KIBOR-linked, variable |
| Meezan Bank | About 13.8 percent | Rental, KIBOR-linked, Islamic finance |
| Bank Alfalah | About 14.2 percent | KIBOR-linked, variable |
Disclaimer: Rates are floating (KIBOR plus spread) and reset periodically. The figures above are indicative only, and this tool gives estimates only. Your bank will confirm the final EMI, fees and repayment schedule.
Frequently asked questions
What is EMI?
EMI is the fixed monthly payment that covers both the loan principal and the markup or profit. You pay the same amount every month for the whole tenure, as long as the rate does not change.
What is the difference between reducing balance and flat rate?
With reducing balance, interest is charged only on the balance still owed, so the interest part falls each month. With a flat rate, interest is charged on the full original loan for the whole tenure, so the total cost is much higher even when the quoted rate looks lower.
How does Islamic home finance work?
Islamic banks do not charge interest. Home finance commonly uses Ijarah or Diminishing Musharakah. In Diminishing Musharakah, the bank and the customer buy the home together, the customer pays rent on the bank share, and the customer buys out the bank share over time. In this calculator, switch to Islamic finance to see the same figures labelled as profit or rent. The maths is the same.
Can my EMI change?
Yes, if your loan is on a floating rate. Most home loans in Pakistan are KIBOR plus a spread, so the rate resets when KIBOR moves, usually each month or every few months, and the EMI or the tenure changes. Fixed rate loans keep the same EMI for the fixed period.
What tenure should I choose?
A longer tenure gives a smaller EMI but you pay much more total profit. A shorter tenure costs more each month but is cheaper overall. Choose the shortest tenure whose EMI stays within about 40 percent of your monthly income, and use the tenure comparison table above to see the trade-off.
This calculator gives estimates only and is not financial advice. Confirm the final EMI, fees and schedule with your bank before you apply.