Loan EMI Calculator
Calculate monthly instalments, total interest payable, and view the full amortization schedule for any fixed-rate loan.
Calculated on fixed reducing balance rate. Early monthly payments will be interest-heavy while later payments reduce principal.
How is Loan EMI calculated for bank financing in Pakistan?
Equal Monthly Instalments (EMI) are calculated using the standard reducing balance formula: EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P is Principal loan amount, r is the monthly interest rate (Annual Rate ÷ 1200), and n is the tenure in months. In the early tenure, a higher portion pays interest, while later instalments pay down principal.
Loan Repayment Schedule
See how each instalment pays down principal and interest over time.
| Year | Principal Paid | Interest Paid | Total Paid | Ending Balance |
|---|---|---|---|---|
| Year 1 | 275,853 PKR | 157,976 PKR | 433,829 PKR | 724,147 PKR |
| Year 2 | 329,815 PKR | 104,014 PKR | 433,829 PKR | 394,332 PKR |
| Year 3 | 394,332 PKR | 39,496 PKR | 433,829 PKR | 0 PKR |
An Equal Monthly Instalment (EMI) spreads your loan principal and interest into equal monthly payments throughout the tenure. Early monthly payments cover mostly interest, while later payments pay down principal.