Loan EMI Calculator

You enter the amount, the yearly markup rate and the period. The calculator divides the yearly rate by 12, then finds the one fixed monthly payment that repays the loan exactly by the last month. Every month it charges markup on the balance you still owe, takes the rest of the instalment off the principal, and carries the smaller balance forward. That is why the schedule starts markup-heavy and ends principal-heavy.

The extra options run the same month-by-month loop with one change each: a prepayment or extra amount reduces the balance, a rate change recalculates the instalment for the months left, and a processing fee is treated as cash you never receive. The true yearly cost (APR) is the monthly rate that makes the money you receive equal to the present value of everything you repay, multiplied by 12. It describes the loan contract, so it is worked out without any prepayment or extra monthly payment you choose to make.

Borrowing Rs 1,000,000 at 18% for 3 years means 36 instalments of Rs 36,152. You repay Rs 1,301,486 in total, of which Rs 301,486 is markup. Here is how a few common changes move that result.

Paying the same Rs 200,000 to finish sooner saves more markup than using it to lower the instalment, because the shorter loan stops charging markup earlier. Lowering the instalment helps your monthly cash flow instead. Pick the one that matches your goal.

Most bank loans in Pakistan are floating: the rate is a benchmark plus a fixed spread. The benchmark is KIBOR, published daily by the State Bank. On October 30, 2026 the 1-year KIBOR offer rate was 13.05%, and the SBP policy rate was 12% after the October 26, 2026 decision. When the State Bank raises or cuts its policy rate, KIBOR usually moves with it, and your instalment changes at the next repricing date in your offer letter. Use the rate-change option under More options to see how much a one or two point move would cost you.

Banks also check how much of your income is already committed. For consumer loans the SBP debt burden ratio is 40% of net income, counting every loan and card instalment together. A loan that fits the calculator can still be refused if it pushes you over that line. For a specific purpose, use the car financing calculator (which applies SBP down payment and tenure rules) or the home finance calculator (which checks affordability).

Some lenders, shops and informal schemes quote a flat rate. Ten percent flat on Rs 1,000,000 for 3 years adds Rs 300,000 of markup, so you repay Rs 1,300,000 in 36 equal payments of Rs 36,111. Because you are repaying principal every month, that is the same cost as about 17.9% a year on a reducing balance (total markup Rs 300,000). When comparing two offers, always convert both to the same basis. Under More options, the flat rate box does the conversion and can fill in the markup rate for you. You can also ask the lender for the APR.

Every rupee you use to repay a loan earns a certain return equal to the loan's markup rate, with no market risk. A loan at 18% means prepaying it "earns" 18%, before tax and any early settlement fee. A PSX portfolio may earn more over many years, but not every year and not for sure (see what the market really did in the KSE-100 return calculator). As a rule of thumb, clear expensive consumer debt (credit cards, personal loans) first, and invest regularly alongside cheaper long-term debt. Project what regular investing could grow to with the SIP calculator and compare it with the markup you would save here.

• Comparing only the monthly instalment. A longer period lowers the instalment but raises total markup. Look at total paid and the APR.
• Ignoring fees and insurance. Processing, documentation and mandatory insurance or takaful can add a meaningful amount. Add the fee under More options.
• Forgetting the floating rate. If your loan is KIBOR-linked, the instalment today is not guaranteed for the whole period.
• Skipping the early settlement terms. Part-payments and full settlement can carry a penalty. Ask before you plan a prepayment.