Amortization Calculator
Calculate the full amortization schedule of a loan in Pakistan.
About the Amortization Calculator
The Amortization Calculator is a free, private tool that runs entirely in your browser — your inputs never leave your device, and the answer appears the instant you enter them.
Whether it is a home, car, bike or personal loan, the two numbers that matter are the monthly installment (EMI) and the total interest over the loan's life. This Amortization Calculator computes both from the loan amount, rate and tenure, using the standard reducing-balance formula used by Pakistani banks.
The calculation applies the annual rate monthly to the outstanding balance, so early payments are mostly interest and later payments mostly principal — exactly how banks structure the repayment. The amortisation table shows this month by month.
KIBOR-based pricing is common for home loans in Pakistan: banks quote 'KIBOR + spread', and the effective rate you enter should be the full rate you will actually pay. Getting this right is the difference between a realistic EMI and a misleading one.
Use the tool to test scenarios before you commit: a larger down payment, a shorter tenure, or a better rate. Keep your total monthly debt payments under roughly 40–50% of take-home income, and compare the total-interest column across banks — that is where the real money is saved.
The Amortization Calculator is one of a large, connected suite of Pakistani calculators on GuruAlpha, so if a related figure comes up next, the tool for it is a click away.
How to calculate your loan EMI
- 1
Enter the loan amount (principal) in PKR.
- 2
Enter the annual interest rate your bank quoted.
- 3
Enter the tenure in months.
- 4
Read your EMI, total payment and total interest, plus the full amortisation table.
Frequently Asked Questions
How is the amortization calculator result calculated?
This tool uses the standard, transparent method for amortization calculator — you enter the values shown and it applies the recognised formula, updating the result live as you type. All figures are estimates for guidance.
What is KIBOR and how does it affect my loan?
KIBOR is the Karachi Interbank Offered Rate — the benchmark Pakistani banks use to price floating-rate loans. A loan quoted as 'KIBOR + 3%' reprices as KIBOR moves, so your EMI can change over the loan's life.
Should I choose a shorter or longer tenure?
A shorter tenure means a higher EMI but far less total interest. A longer tenure lowers the EMI but multiplies the interest — compare both with this calculator before deciding.