This calculator works out the monthly installment (EMI) on a car loan, home loan or personal loan, along with the total interest you will pay and a full repayment schedule. Type in the amount, the yearly rate and how long you will be paying, and the numbers update as you type.
I made it mostly with Pakistani car and house financing in mind, where the monthly figure gets all the attention. The total interest matters more, so it sits right next to the EMI.
How to use
- Pick I know the loan amount if you already know how much you are borrowing. Pick I know the price if you know the car or property price and your down payment, and the tool works out the loan for you.
- Enter the Loan amount, or the Car or property price and Down payment.
- Enter the Annual interest rate (%) from your offer letter.
- Enter the Tenure and choose Years or Months.
- Choose a Currency label. This only changes the symbol shown, nothing gets converted.
- Read the Monthly EMI, Total interest, Total payment and Interest share, then scroll to the Repayment schedule. Switch between Yearly and Monthly to see each payment split into principal and interest.
How the EMI formula works
The standard formula is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months.
Take the example the calculator opens with: Rs 2,500,000 at 18% for 5 years. The monthly rate is 0.015 and n is 60. That gives an EMI of roughly Rs 63,500. Over 60 months you pay about Rs 3.8 million, so close to Rs 1.3 million of that is interest. Roughly a third of everything you hand the bank never touches the loan itself.
If the rate is 0%, there is no interest to spread, so the EMI is simply P ÷ n.
Why early payments are mostly interest
Open the monthly schedule and look at month 1. Most of the payment is interest, and only a small slice reduces the balance. Interest each month is charged on what you still owe, and at the start you owe everything. As the balance falls, the interest part shrinks and the principal part grows, even though the EMI stays the same.
So a lump sum paid early saves far more than the same lump sum paid in the final year, and a longer tenure feels cheaper per month but costs more overall. Try changing 5 years to 7 in the tool and watch the total interest jump.
What this calculator leaves out
Banks add things that are not in the EMI formula: processing fees, insurance (often a yearly premium on car loans), registration, tracker fees, and in some cases a penalty for paying off early. Many Pakistani car and home loans are also tied to KIBOR, so the rate can change every few months and your EMI with it.
Islamic banking works differently. Car ijarah is a rental arrangement and diminishing musharakah splits ownership, so the monthly amount is built from rental and profit rates rather than this conventional formula. The figure here is a useful ballpark, but ask the bank for their own schedule before you sign.
FAQ
Is this loan calculator free?
Yes. It runs in your browser and nothing is sent anywhere. No sign-up.
Does a lower EMI mean a cheaper loan?
Not always. A lower EMI usually comes from a longer tenure, which means more months of interest. Compare the total payment, not just the monthly figure.
Can I use it for a car loan with a down payment?
Yes. Choose I know the price, enter the car price and your down payment, and the loan amount is worked out for you.
Why is my bank's EMI slightly different?
Banks may round differently, add insurance into the installment, or calculate interest on a daily basis. Small gaps are normal. A big gap usually means fees or insurance are included in their figure.