| Principal Amount | PKR 0 |
| Monthly Interest Rate | 0% |
| Total Number of Payments | 0 |
| Total Payment | PKR 0 |
| Total Interest Paid | PKR 0 |
| Monthly EMI | PKR 0 |
An EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. It consists of two parts: the principal repayment and the interest charge. In the early months of a loan, most of your EMI goes toward interest — over time, more goes toward the principal.
Enter your loan amount, annual interest rate (currently 15–22% for most Pakistani banks), and loan tenure in years. The calculator instantly shows your monthly EMI and generates a complete amortization schedule — year-by-year or month-by-month — so you can see exactly how your loan balance reduces over time.
EMI = P × r × (1+r)^n ÷ [(1+r)^n – 1]
Full schedule showing principal vs interest each year/month
See total cost of borrowing over full loan tenure
EMI (Equated Monthly Installment) is a fixed payment amount made each month to a lender. It consists of two components: the principal repayment and the interest charge. The formula is: EMI = [P × r × (1+r)^n] / [(1+r)^n – 1] where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12), and n = total number of months. Over time, the interest portion decreases while the principal portion increases.
Bank lending rates in Pakistan are tied to the State Bank of Pakistan (SBP) policy rate. As of 2025, the SBP has been reducing rates from a peak of 22%. Typical bank personal loan rates range from 15% to 24% per annum, while mortgage rates (house finance) range from 14% to 22% depending on the bank and product. Islamic (Shariah-compliant) financing uses profit rates rather than interest, which are broadly comparable.
Yes. Partial or full prepayment reduces your outstanding principal, which directly reduces the total interest paid over the life of the loan. However, many banks in Pakistan charge a prepayment penalty (typically 1–3% of the prepaid amount). Always read your loan agreement carefully. For Islamic home finance, prepayment terms vary by product structure.