Loan Installment Calculator
Calculate your monthly installment for a car, home, or personal loan/financing in Pakistan, with a full year-by-year payment breakdown.
Year-by-Year Breakdown
| Year | Principal Paid So Far | Profit/Interest Paid So Far | Remaining Balance |
|---|---|---|---|
| 1 | Rs. 258,720 | Rs. 377,133 | Rs. 1,741,280 |
| 2 | Rs. 574,202 | Rs. 697,505 | Rs. 1,425,798 |
| 3 | Rs. 958,897 | Rs. 948,663 | Rs. 1,041,103 |
| 4 | Rs. 1,427,991 | Rs. 1,115,422 | Rs. 572,009 |
| 5 | Rs. 2,000,000 | Rs. 1,179,266 | Rs. 0 |
How This Is Calculated
The monthly installment is calculated using the standard amortization formula, so every installment is the same amount, but the mix of principal versus profit/interest within it shifts over time:
Installment = P × r × (1 + r)n / [(1 + r)n − 1]
where P is the loan amount, r is the monthly rate (annual rate ÷ 12), and n is the total number of months.
Worked example: A Rs. 2,000,000 car financing over 5 years at a 20% annual rate works out to Rs. 52,988/month, for a total of Rs. 3,179,266 paid over the full term - meaning Rs. 1,179,266 in total profit/interest on top of the original amount.
Frequently Asked Questions
Why "installment" and not "EMI"?
"EMI" (Equated Monthly Installment) is the term commonly used in India. In Pakistan, banks and financing companies simply call this a "monthly installment" - so that's what we use here.
Does this work for Islamic (Shariah-compliant) financing too?
Mathematically, yes - the calculation is the same whether you call the rate "interest" (conventional loan) or "profit rate" (Islamic financing). However, real Islamic financing structures like Diminishing Musharakah or Ijarah may compute the actual installment slightly differently depending on the bank's specific structure. Treat this as a close estimate, not your bank's official figure.
What rate should I use?
Use the annual rate your bank or financing company quotes you - whether it's called an interest rate or a profit rate, enter the same annual percentage number here.
Why does the total paid go up as the rate goes up, even with the same loan amount?
A higher rate means more of your early installments go toward profit/interest rather than reducing the principal, which is why the total amount paid over the full term rises with the rate, even though the loan amount doesn't change.
This tool is for educational purposes only and does not constitute financial advice. Real financing products may include fees, insurance, or structuring differences (especially for Islamic financing) not reflected here - always confirm the exact figures with your bank or financing company. See also: Investment Growth Calculator · All Tools.