Loan / EMI Calculator
Enter your loan amount, interest rate and tenure to see the monthly installment (EMI), total interest and a full month-by-month amortization schedule — instantly, as you type.
Monthly installment
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Show amortization schedule (month by month)
| Month | Payment | Principal | Interest | Balance |
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What is an EMI?
EMI stands for Equated Monthly Installment — the fixed amount you pay a bank or lender every month until a loan is fully repaid. Each installment is a mix of two things: interest on the money you still owe, and a piece of the original loan (the principal). In the early months most of your payment goes to interest; as the balance shrinks, more and more of each payment chips away at the principal. That shifting split is exactly what the amortization table above shows.
How to use this calculator
Type in three numbers: the amount you want to borrow, the annual interest rate the lender quoted, and the repayment period (switch between years and months with the toggle). The monthly installment, total interest and total repayment update live — there is no button to press. Open the amortization schedule to see how every single payment is divided between principal and interest, and what balance remains after each month.
The formula
where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. If the rate is zero, the EMI is simply P ÷ n.
Worked example
Suppose you borrow PKR 1,000,000 at 15% per year for 5 years. The monthly rate is 15 ÷ 12 ÷ 100 = 0.0125 and n = 60 payments. Plugging in:
Over five years you would pay about PKR 1,427,396 in total, of which roughly PKR 427,396 is interest. Notice that the interest is almost 43% of the amount you borrowed — this is why comparing rates and tenures before signing matters so much.
When is this useful?
Use it before taking a car loan, home loan, personal loan or business financing to check whether the installment fits your monthly budget (a common rule of thumb is to keep all loan installments under 35–40% of take-home income). It is also handy for comparing offers: a slightly lower rate or a shorter tenure can save hundreds of thousands of rupees in interest. Try a few scenarios — for example, shortening the tenure from 5 to 4 years raises the monthly payment but cuts the total interest sharply.
Reading about how this works? See our article EMI explained: how banks calculate your monthly installment.
Frequently asked questions
Does a longer tenure make a loan cheaper?
No — it lowers the monthly installment but increases the total interest you pay, because interest keeps accruing on the outstanding balance for more months. A longer tenure buys affordability, not savings.
Why does most of my early payment go to interest?
Interest is charged on the outstanding balance, which is largest at the start. As you repay principal, the interest portion of each fixed installment shrinks and the principal portion grows.
Is this calculator accurate for Pakistani bank loans?
It uses the standard reducing-balance EMI formula that most banks use for car, home and personal loans. Banks may add processing fees, insurance or use slightly different rounding, so treat the result as a very close estimate.
Can I use it for interest-free or 0% installment plans?
Yes — set the rate to 0 and the tool simply divides the price by the number of months. Watch out for hidden processing fees in such plans, which act like interest.
What happens if I make extra payments?
Extra principal payments reduce the balance early, which cuts future interest and either shortens the tenure or lowers the installment (depending on your bank's policy). This calculator models the standard fixed schedule without prepayments.