Loan Calculator
Home, personal or business loans. See your monthly installment before you sign.
50 lakh
Aap ka hisaab · your result
Monthly installment
PKR 77,633
for 120 months
Principal
PKR 5,000,000
Total interest
PKR 4,315,986
Total payable
PKR 9,315,986
How your installment was worked out
PKR 5,000,000 at 14% for 10 years
Yearly repayment schedule 10 years
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | PKR 247,053 | PKR 684,546 | PKR 4,752,947 |
| Year 2 | PKR 283,948 | PKR 647,650 | PKR 4,468,999 |
| Year 3 | PKR 326,354 | PKR 605,245 | PKR 4,142,645 |
| Year 4 | PKR 375,092 | PKR 556,507 | PKR 3,767,553 |
| Year 5 | PKR 431,109 | PKR 500,490 | PKR 3,336,444 |
| Year 6 | PKR 495,492 | PKR 436,107 | PKR 2,840,952 |
| Year 7 | PKR 569,489 | PKR 362,109 | PKR 2,271,463 |
| Year 8 | PKR 654,538 | PKR 277,060 | PKR 1,616,925 |
| Year 9 | PKR 752,288 | PKR 179,310 | PKR 864,636 |
| Year 10 | PKR 864,636 | PKR 66,962 | PKR 0 |
How it's calculated
Monthly installment = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan, r the monthly rate (yearly rate ÷ 12) and n the number of months.
Shorter or longer tenure?
A longer loan lowers the installment, but you pay much more interest in total. The same PKR 5,000,000 at 14%:
| Tenure | Monthly installment | Total interest | Total payable |
|---|---|---|---|
| 5 years | PKR 116,341 | PKR 1,980,475 | PKR 6,980,475 |
| 10 years | PKR 77,633 | PKR 4,315,986 | PKR 9,315,986 |
| 15 years | PKR 66,587 | PKR 6,985,672 | PKR 11,985,672 |
| 20 years | PKR 62,176 | PKR 9,922,250 | PKR 14,922,250 |
Fixed or floating rate
Most home, car and business loans in Pakistan have a floating rate: KIBOR (the Karachi Interbank Offered Rate) plus a fixed margin set by the bank. KIBOR follows the State Bank's policy rate, and your rate is reset to the latest KIBOR every 6 or 12 months, so your installment can go up or down. A fixed-rate loan usually costs more at the start but stays the same for the whole term.
Here is what a 2% move does to the same 10-year loan of PKR 5,000,000:
| Rate | Monthly installment | Total interest |
|---|---|---|
| 12% | PKR 71,735 | PKR 3,608,257 |
| 14% | PKR 77,633 | PKR 4,315,986 |
| 16% | PKR 83,757 | PKR 5,050,787 |
Islamic banks price home and car financing as rent or profit instead of interest, usually also benchmarked to KIBOR. The installment works out the same way, so use their quoted rate above.
Questions people ask
Why is my total interest less than the interest rate?
The rate is yearly and is charged only on what you still owe. Each installment pays back part of the loan, so the balance, and the interest on it, falls month by month. On a 1-year loan of PKR 5,000,000 at 14% you owe a little over half the loan on average, so the interest comes to PKR 387,227, 7.7% of the loan rather than 14%. You pay the full rate on the whole amount only with a "flat rate" loan, which some informal lenders use; banks work on the falling balance.
Why does my bank's rate change?
Most Pakistani bank loans are priced at KIBOR plus a margin and reset every 6 or 12 months, so your installment can move up or down.
Does this work for Islamic financing?
Yes, as an estimate. Use the profit or rental rate quoted by your Islamic bank as the interest rate.
Are fees included?
No. Processing fees, insurance and taxes are extra; ask your bank for the full cost.
How big a loan can I get on my salary?
Banks cap your total monthly installments, including any loans you already have, at a share of your take-home pay. Ask your bank for its limit, then check your take-home with the salary tax calculator and try different amounts here until the installment fits.
Is it worth paying off a loan early?
Usually, because every rupee of principal you repay early stops earning interest for the bank. Ask first whether there is a prepayment charge, and whether a part payment will lower your installment or shorten the tenure.