Car Loan Calculator Pakistan
Compare monthly installments for a Pakistani car loan by changing price, down payment, rate and years.
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Worked example
Example: price Rs. 4,000,000, 30% down payment, 16% yearly profit rate, 5 years, reducing balance.
| Financed amount | Rs. 2,800,000 |
|---|---|
| Monthly installment | Rs. 68,091 |
| Total payable | Rs. 4,085,434 |
| Total profit | Rs. 1,285,434 |
How the Car Loan Calculator Pakistan works
Enter price, down payment, profit rate and tenure. The calculator uses the reducing-balance EMI formula (or flat rate) to give the monthly installment and total cost.
Formula: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), r = annual rate ÷ 12
What to know before you calculate
Car financing in Pakistan usually needs a down payment of 10–30% and comprehensive insurance, and profit is quoted either as a reducing-balance rate or a flat rate. The two give very different totals, which is why this calculator lets you switch between them.
Reducing balance vs flat rate
Pakistani banks quote car finance in two ways. On a reducing-balance basis, profit is charged only on the amount still outstanding, so each installment pays a little less profit and a little more principal. On a flat basis, profit is charged on the full financed amount for the whole tenure, which makes the same headline rate more expensive. Ask the bank which method its quote uses before comparing offers.
Example with this calculator: a Rs. 4,000,000 car with 30% down leaves Rs. 2,800,000 to finance. At 16% for 5 years on a reducing balance, the installment is about Rs. 68,091 and total profit about Rs. 1,285,434. On a flat 16% the installment becomes Rs. 84,000 and total profit Rs. 2,240,000. Same rate, very different cost.
What changes the installment most
Tenure and down payment matter more than small rate differences. Cutting the same example to 3 years raises the installment to about Rs. 98,440 but lowers total profit to about Rs. 743,829. A larger down payment reduces both the installment and the total profit.
Most bank rates are linked to KIBOR and reset during the tenure, so the installment can rise or fall later. Ijarah products from Islamic banks follow a different contract (the bank owns the car and charges rent), but the monthly figure is calculated in a similar way.
Costs this estimate leaves out
Processing fee, insurance or takaful, tracker charges, registration and early-settlement charges are not included. Ask each bank for a written repayment schedule and compare the total amount payable, not only the monthly installment.
Tips for accurate results
A higher down payment and shorter tenure reduce total profit paid. Compare the installment with at least three banks and ask about processing fee, takaful, early settlement charges and KIBOR reset terms.
Official sources: State Bank of Pakistan.
Roman Urdu mein
Gari ya ghar ki qeemat, down payment, profit rate aur muddat daalein to mahana qist aur kul adaigi nazar aa jati hai.
Frequently asked questions
Flat rate or reducing balance: which is cheaper?
For the same quoted percentage, a flat rate costs much more because profit is charged on the full amount for the whole tenure.
How is the Car loan monthly installment calculated?
The financed amount is spread over the tenure with profit charged on the outstanding balance. Banks may add processing, takaful and registration costs.
Is the profit rate fixed?
Many Pakistani bank rates are KIBOR-linked and reset periodically, so confirm with the bank.
How is a car loan monthly installment calculated?
The installment is calculated from the financed amount, periodic profit or interest rate and repayment term. Bank fees, insurance, tracker charges and variable-rate terms may change the actual payment.
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Disclaimer: results are estimates for general information. Confirm figures with the official authority, bank, institution or a qualified professional.