Loan Calculator
Calculate monthly payment and total interest for a fixed-rate loan.
Results are estimates. Banks may use different day-count conventions, fees, or variable rates.
Guide: Loan Calculator
This free loan calculator helps you work out the monthly installment and total interest for a fixed-rate loan in PKR. Enter principal, annual interest rate, and term in years to compare borrowing scenarios before you sign. Use it when a bank quotes a flat monthly payment and you want to see the implied total cost, or when you are deciding between a shorter term with a higher installment versus a longer term with more total interest.
Understanding fixed-rate loan payments
For a standard amortizing loan, each payment covers interest on the remaining balance plus a slice of principal. Over time, more of each payment goes to principal as the balance shrinks.
If the rate is zero, the tool falls back to dividing principal evenly across months so you still get a sensible answer.
The “total repaid” figure is principal plus all scheduled interest; it does not subtract any tax benefit of interest, which depends on your situation and local rules.
Good use cases for a payment calculator
Use it for personal loans, debt consolidation estimates, or any product that behaves like a level-payment fixed-rate loan.
It does not model revolving credit, balloon payments, or changing rates unless you approximate those with separate runs.
For revolving debt like credit cards, minimum payments behave differently; this tool is a better fit for installment-style products with a fixed payoff date.
Comparing two loans fairly
When two banks quote the same rate but different tenures, compare total interest and monthly cash flow together. A lower payment often trades off against paying more interest overall.
Always ask for the full schedule of charges: processing fee, late fee policy, and early settlement terms. Those can matter as much as the headline rate.
Early repayment and rounding
Many loans allow partial prepayment; each institution applies it differently to the next due dates or principal. Our calculator assumes no prepayment unless you shorten the term manually in a new run.
Small rounding differences between this tool and your bank are normal; use official amortization tables for legal balances.