EMI and Loan Calculator
Work out your monthly instalment (EMI), total interest and total repayment for a loan. It works in any currency, including PKR, and it handles 0% interest loans too.
This is an estimate using the reducing-balance method. Your lender may add processing fees, insurance or other charges, so always check the offer letter.
How it works
Each month you pay the same amount. Early instalments are mostly interest, and later ones are mostly principal, because interest is charged on the balance that remains. The calculator turns your yearly rate into a monthly rate, then finds the fixed payment that clears the loan exactly at the end of the tenure.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P is the loan amount.
- r is the monthly rate: annual rate ÷ 12 ÷ 100.
- n is the number of monthly instalments.
If the interest rate is 0%, the formula would divide by zero, so the calculator uses EMI = P ÷ n instead. Total repayment is EMI × n, and total interest is total repayment minus P.
Steps to use it
- Enter the loan amount.
- Enter the yearly interest rate as a percentage. Enter 0 for an interest-free loan.
- Enter the tenure and choose years or months.
- Press Calculate EMI to see the monthly payment, total interest and total repayment.
Examples
| Loan | Rate | Tenure | EMI | Total interest |
|---|---|---|---|---|
| 1,000,000 | 12% | 5 years | 22,244.45 | 334,667 |
| 500,000 | 15% | 3 years | 17,332.66 | 123,976 |
| 600,000 | 0% | 24 months | 25,000.00 | 0 |
Common uses
- Comparing car, home or personal loan offers before you sign.
- Checking whether a monthly instalment fits your budget.
- Seeing how much a longer tenure adds in total interest.
- Checking a shop or bank instalment plan, including 0% plans.
Frequently asked questions
What is an EMI?
EMI stands for equated monthly instalment. It is the fixed amount you pay each month until the loan is fully repaid.
What if the interest rate is 0%?
The calculator simply divides the loan amount by the number of months. Total interest is zero.
Why does my bank show a different figure?
Banks may charge processing fees, insurance or use a different day-count. Some offers, such as car financing or Islamic financing, quote a flat rate or a markup on the original amount instead of a reducing balance. A flat rate gives a higher effective cost than the same rate on a reducing balance, so ask your lender which method applies.
Does a longer tenure save money?
It lowers the monthly EMI, but you pay interest for more months, so total interest goes up.
Is this financial advice?
No. It is a calculation tool. See our Terms and Disclaimer and How We Test pages.