How is the monthly repayment calculated?

The tool uses the standard amortising loan formula: M = P times r times (1+r)^n divided by ((1+r)^n minus 1), where P is the principal, r is the monthly interest rate, and n is the number of months. Every instalment is identical, but the interest portion shrinks as the balance falls.

Why are Pakistan personal loan rates so high?

Personal loan APRs in Pakistan are typically 22 to 35 percent, driven by the State Bank policy rate and the unsecured nature of the lending. Bank loans sit at the lower end; non-banking finance companies and microfinance providers charge more.

What is an amortisation schedule?

It is a month-by-month breakdown showing how each payment splits between interest and principal, and how the outstanding balance falls over time. Early payments are mostly interest; later payments are mostly principal.

Does this include processing fees and insurance?

No. The calculation covers principal and interest only. Real Pakistani personal loans usually add a one-off processing fee, takaful or credit life insurance, and sometimes early-settlement charges, so the true cost is a little higher than shown.

Are these figures exact?

They are an accurate amortisation for the rate and term you enter, but actual offers vary by bank, your credit profile and the financing structure. Many products are Sharia-compliant rather than interest-based. Treat the output as an estimate, not a quote.

Pakistan Personal Loan Calculator

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A Pakistan personal loan calculator that shows your monthly repayment, the total interest you will pay, and a full amortisation schedule — using the high local APRs (typically 22 to 35 percent) that make borrowing in Pakistan expensive.

How it works

The tool computes a standard amortising loan, where every monthly instalment is the same:

r = annualRate / 12 / 100
M = P * r * (1 + r)^n / ((1 + r)^n - 1)

Here P is the amount borrowed, r is the monthly rate, and n is the number of months. Each month the interest is charged on the remaining balance, the rest of the instalment reduces the principal, and the balance shrinks until it reaches zero.

Example and notes

Borrow Rs 1,000,000 at 25% over 3 years (36 months). The fixed monthly instalment is around Rs 39,750, you pay roughly Rs 431,000 in total interest, and the amortisation table shows the interest share falling month by month as the balance drops.

This covers principal and interest only. Real Pakistani personal loans add processing fees, takaful or credit life insurance, and possible early-settlement charges, and many are structured as Sharia-compliant financing rather than conventional interest. All figures are computed locally in your browser and are not a loan quote or financial advice.