What is an EMI and how is it calculated?

EMI (equated monthly installment) is derived from the principal, annual markup rate and tenure on the reducing balance method, giving one fixed payment that covers both markup and principal repayment.

What are KIBOR rates and why do they matter?

KIBOR (Karachi Interbank Offered Rate) is the benchmark Pakistani banks use to price loans. Most facilities are sanctioned as KIBOR plus a spread, so your installment can be revised on the loan anniversary when KIBOR moves.

Can I use this calculator for Islamic financing?

Yes. Islamic banks quote a profit rate rather than interest, but the arithmetic for the monthly rental or installment is largely the same, so this gives a close estimate for Car Ijarah and Diminishing Musharakah.

Are there charges besides the markup?

Usually. Banks charge a one-time processing fee of roughly 1 to 2%, documentation charges and Federal Excise Duty. Auto financing adds mandatory insurance and tracker fees. None of these are inside the installment figure.

Is there a penalty for early settlement?

Most banks allow early settlement but apply a penalty, commonly 2 to 5% of the outstanding principal. Confirm the exact terms before signing if you plan to close the loan early.

Calculators · Pakistan

LoanCalculators.pk

Free loan calculator for Pakistan with EMI, bank rates and government schemes

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Free calculator for personal, car, home and bike loans in Pakistan with current bank rates, EMI calculations and interest-free government schemes.

What it is

Screenshot of the LoanCalculators.pk homepage — loancalculators.pk, as visitors see it

LoanCalculators.pk is an independent financial information platform helping Pakistani borrowers understand loan costs before applying. It provides free calculators for personal, car, home and bike loans with current rates from 28 banks, KIBOR tracking, and eligibility checks. The platform covers conventional and Islamic financing products, government interest-free schemes, and mobile lending options.

The calculator uses the reducing balance method recognized by Pakistan's State Bank, with year-by-year repayment schedules and total cost breakdowns. Users can compare loan rates across banks, check borrowing capacity based on salary, and explore alternative financing options including government programs like PM Youth Loan and Apni Chhat Apna Ghar.

What it is built with

EMI calculation on reducing balance method
Year-by-year repayment schedule breakdown
Rates for 28 Pakistani banks
Loan eligibility checker based on salary
Car and bike installment calculators
Islamic financing and Ijarah calculators
Government interest-free loan schemes
KIBOR rate tracking
Live repayment charts by year and tenure
Bank rate comparison tool

Pricing

Pricing model: Free