Fill in the empty fields to see the result.
| Year | Paid | Interest paid | Balance |
|---|
Annuity: A = P × i / (1 − (1 + i)^−n), i = annual rate / 12. Declining: P / n of principal + interest on the remaining balance. Fees and insurance are not included.
What this loan calculator shows
This is a loan EMI calculator for personal loans, car loans, consumer financing and similar borrowing. EMI means equated monthly instalment: a fixed payment that covers interest and part of the principal each month. Principal is the amount you borrowed.
The fields come with neutral sample values so you can see how the results look. Replace them with the figures from your loan offer. The results update next to the inputs:
- Monthly instalment. With annuity payments this is the same every month. With differentiated payments it is the first and the last instalment.
- Total interest. The total you pay above the principal over the whole term.
- Total paid. Principal plus interest.
- Yearly schedule. For each year: the principal repaid, the interest paid and the balance left.
- Early repayment. The schedule with an extra payment, and how much interest and time it saves.
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Annuity vs differentiated payments
Banks in Pakistan use both methods. Your loan agreement says which one applies.
Annuity (equal instalments)
Every instalment is the same amount. Early instalments are mostly interest, because the balance is still large. Later instalments are mostly principal. Most personal loan and car financing offers that state a fixed EMI use this method.
The payment is found by spreading the principal over the term so that the present value of all instalments, discounted at the periodic rate, equals the loan amount. The exact formula appears under the calculator.
Differentiated (declining instalments)
The principal is split into equal parts: P / n, where P is the principal and n is the number of instalments. Each month you pay that fixed part plus interest on the balance still outstanding. The first instalment is the largest, and each later instalment is smaller.
At the same rate and term, differentiated payments cost less total interest, because the balance falls faster. The trade-off is a higher payment at the start. Switch the method in the tool to compare both on your own figures.
How to use the personal loan calculator
- Enter the loan amount in rupees.
- Enter the annual interest rate from your offer. The tool divides it by the number of instalments in a year to get the periodic rate, i.
- Enter the term. The tool converts it into the number of instalments, n.
- Choose annuity or differentiated.
- To test early repayment, add an extra amount and the month you would pay it. Then choose whether it should shorten the term or reduce the instalment.
Check the rate type in your agreement. A floating rate linked to a benchmark such as KIBOR can change during the term, and the instalment changes with it. The calculator assumes the rate you enter stays the same for the whole term. To see the effect of a rate change, run it again with a different rate. Benchmark rates move with the State Bank of Pakistan policy rate. The latest decision on record here is: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). Background is on SBP rates and economy.
Effect of early repayment
An extra payment goes straight to the principal. Interest is charged on the balance, so every later instalment carries less interest.
- Shorten the term: the instalment stays the same and the loan ends sooner. This usually saves more interest.
- Reduce the instalment: the term stays the same and each later payment is smaller.
Banks may charge a prepayment fee or set rules on partial prepayment. The calculator does not include those charges. Read your agreement or ask the bank before you count on the savings.
What the result does not include
- Processing fees, insurance, stamp duty and late-payment charges.
- Rate changes on floating-rate loans.
- Islamic financing structures such as murabaha or diminishing musharaka, where the bank's return is a markup or rent rather than interest. The cash flows can look similar, but the contract terms differ. See Islamic finance.
For home financing over a long term, the mortgage calculator is set up for that case. To see what the repaid rupees will be worth in future, use the inflation calculator. More tools are on the calculators page and in saving, investing and loans.
The calculator gives arithmetic, not a recommendation. It does not tell you whether to take a loan or which offer to choose.
A note on borrowing to trade
Do not treat a loan as trading capital. Leveraged forex and CFD trading can lose money quickly, and you would still owe every instalment after a loss. If you are learning, read risk management first.
Frequent questions
What is the difference between EMI and instalment?
EMI is a type of instalment that stays the same every month, as in the annuity method. A differentiated loan also has monthly instalments, but they get smaller over time.
Why is my first annuity payment mostly interest?
Interest is charged on the outstanding balance, and the balance is largest at the start. As you repay principal, the interest share falls and the principal share rises.
Which method costs less in total?
At the same rate and term, differentiated payments cost less total interest. Their starting instalment is higher. Run both methods in the tool to compare them on your own numbers.
Does the calculator match my bank's figure exactly?
It may differ slightly because of rounding, day-count rules, fees or a floating rate. Your bank's repayment schedule is the binding figure.
Can I use it for a car loan or credit card balance?
Yes, for any loan with a fixed rate and regular payments. Credit cards often charge interest differently, so treat the result as an estimate.
Is early repayment always worth it?
The tool shows the interest you would save. Whether it makes sense also depends on prepayment charges and your other needs for the money, which the tool does not assess.