Loan EMI Calculator

EMI stands for Equated Monthly Instalment. It is the fixed amount you pay to the bank every month to repay your loan. Each EMI includes both a principal component and an interest component.

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]. Where P = principal loan amount, R = monthly interest rate (annual rate ÷ 12 ÷ 100), N = total number of monthly instalments.

Pakistani bank personal loan rates typically range from 18–28% per annum depending on the bank and your credit profile. Car loans are generally 14–22%. Mortgage/housing loans can be 12–20%.

Yes — a longer loan term reduces your monthly EMI but increases the total interest you pay over time. A shorter term means higher monthly payments but you pay less interest overall.