Car Loan Calculator

Enter the car price, your down payment, the bank's markup rate and the loan period to see the monthly installment, total cost and full schedule.

Car price (PKR)

Down payment

Down payment in

Markup rate (% per year)

Loan period (years)

Insurance (% of car value per year)

Car value drop per year (%)

One-time fees (PKR)

Monthly installment

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Schedule

How the installment is calculated

Car financing in Pakistan normally uses a reducing balance. Each month you pay the same installment. Part of it is markup on the amount still owed, and the rest pays the loan down. Early installments are mostly markup, later ones mostly principal. The formula is EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount financed, r the monthly rate (yearly rate ÷ 12) and n the number of months.

What to enter

Markup rate: banks usually quote KIBOR plus a spread (for example KIBOR + 3%). Use the rate on your offer letter. Rates change with the State Bank's policy rate, so variable-rate loans can change during the loan.
Down payment: banks and State Bank rules set a minimum down payment and a maximum loan period for cars. Check the current limits with your bank, as they change.
Insurance: comprehensive insurance is usually required every year on the car's value. The calculator lowers the car's value each year by the drop you enter.
Fees: processing, documentation, tracker and registration costs paid once.

Islamic car financing

Ijarah and Diminishing Musharakah plans use rent instead of markup, but the monthly payment is usually worked out in a very similar way. This calculator gives a close estimate. Your bank's official quotation is final.

For other loans (home, personal, business), use the Loan / EMI Calculator. All calculations run in your browser.

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Runs in your browserNothing you enter is sent to a server.

Works on mobileSame tool on your phone, tablet or desktop.

How it works

Enter — type or paste your values or text.
Get the result — it is worked out in your browser.
Adjust — change the inputs to compare, or copy the result.

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