Car Loan Calculator Pakistan
Car finance the way Pakistani banks price it: 1-year KIBOR + margin, 30% down payment, insurance in the instalment, and the SBP limits.
Runs in your browser — nothing is uploadedEnter values
Calculator
Loan type
Typical bank car loan: 1-year KIBOR + 3.5–4.5% (by tenure), reset every year; 30% down; insurance added to the instalment. Change anything to match your offer.
Engine
Amount
Interest
Rate type
Rate reset every
Loan term in
Payments
Fees (optional)
Pay off faster (optional)
Can I afford it? (DBR) (optional)
Result
- Amount financed
- Rs 2,450,000 (24.5 lakh)
- Monthly incl. insurance
- Rs 66,960
- Down payment
- Rs 1,050,000
- Total interest
- Rs 1,217,571
- Total of payments
- Rs 3,667,571
- Starting rate
- 17.18% (KIBOR + 4.5%)
- Fees + insurance
- Rs 350,000
- Total cost of the purchase
- Rs 5,067,571
- Number of payments
- 60
How it's calculated
Payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P = Rs 2,450,000, r = 17.18% ÷ 12 = 1.431667%, n = 60
Payment = Rs 61,126
- KIBOR is set daily by the State Bank of Pakistan; your bank re-prices the loan every 1 year, so the instalment moves with it.
- Insurance is an estimate on the full price; premiums usually fall as a car loses value.
Compare tenures
| Tenure | Monthly payment | Total interest |
|---|---|---|
| 1 year | Rs 223,661 | Rs 233,932 |
| 2 years | Rs 121,346 | Rs 462,293 |
| 3 years | Rs 87,569 | Rs 702,477 |
| 4 years | Rs 70,923 | Rs 954,314 |
| 5 yearsyours | Rs 61,126 | Rs 1,217,571 |
| 7 years | Rs 50,323 | Rs 1,777,124 |
| 10 years | Rs 42,860 | Rs 2,693,233 |
| 15 years | Rs 38,019 | Rs 4,393,347 |
| 20 years | Rs 36,272 | Rs 6,255,365 |
| 25 years | Rs 35,576 | Rs 8,222,791 |
| 30 years | Rs 35,287 | Rs 10,253,409 |
Repayment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Rs 338,433 | Rs 395,082 | Rs 2,111,567 | |
| Rs 401,379 | Rs 332,135 | Rs 1,710,188 | |
| Rs 476,034 | Rs 257,481 | Rs 1,234,154 | |
| Rs 564,573 | Rs 168,941 | Rs 669,581 | |
| Rs 669,581 | Rs 63,933 | Rs 0 |
How do banks in Pakistan calculate a car loan instalment?
Pakistani banks price car loans at 1-year KIBOR plus a margin (typically 3.5–4.5% depending on tenure), reset every year, with at least 30% down payment under SBP rules and insurance added to the monthly instalment. This calculator applies those settings, shows the instalment with and without insurance, and checks your DBR and the SBP tenure and Rs 3 million limits.
Before taking a loan, it helps to know the regular payment and how much interest you will pay in total. In Simple mode the calculator gives you both in seconds, for monthly, bi-weekly or weekly payments, with a year-by-year schedule of how each payment splits between interest and principal.
Advanced mode works the way banks actually price loans. Pick Car, Home or Personal to load typical Pakistani bank terms — 1-year KIBOR plus the bank's margin, the down payment and tenure limits — or set your own. You can model a floating KIBOR + margin rate (3-month, 6-month or 1-year, with a "what if KIBOR changes" scenario), convert a flat rate into its real yearly cost, add a processing fee and insurance or takaful, and see how extra payments or a lump sum cut the interest.
Enter your income and existing commitments to check your DBR (debt burden ratio) the way banks do, and compare tenures from 1 to 30 years side by side before you choose.
When to use it
- Car, home and personal loans from Pakistani banks (KIBOR + margin).
- Seeing what a flat-rate instalment (qist) plan really costs a year.
- Checking whether a loan fits your DBR before you apply.
- Comparing bank offers, tenures and the effect of prepaying.
Tips for better results
- A longer tenure lowers each payment but increases the total interest you pay.
- A flat rate is far more expensive than the same reducing-balance rate: 10% flat over 5 years costs about 17% a year.
- With a KIBOR-linked loan, try a higher KIBOR in the scenario field to see how much your instalment could rise at the next reset.
- Banks count other loan instalments and about 5% of your credit card limits in your DBR — closing unused cards can raise how much you can borrow.
- Check the prepayment charge before planning a lump sum: some banks charge 5–7% of the amount repaid early.
How to use the Loan Calculator
- Simple: enter the loan amount, interest rate and term, and choose how often you pay.
- Advanced: choose your currency, then Car, Home or Personal to load typical terms for your country (KIBOR + margin and SBP rules for Pakistan), and adjust them to your offer.
- Add fees, prepayments and your income to see the real cost, interest saved and your DBR.
- Compare tenures and review the year-by-year schedule.
Frequently asked questions
Does this include fees or insurance?
Simple mode shows principal and interest only. Advanced mode adds the processing fee and yearly insurance or takaful, and shows the yearly cost including fees and the instalment including insurance.
Which interest rate should I enter?
For a fixed loan, the nominal yearly rate. For a KIBOR-linked loan, choose KIBOR + margin and enter both; for an instalment plan quoted as a flat rate, choose Flat to see what it really costs.
Which KIBOR should I use?
Use the tenor in your offer letter. Car and home loans in Pakistan are usually priced on 1-year KIBOR and re-priced every loan anniversary; some use 3- or 6-month KIBOR. Today's rates are published by the State Bank of Pakistan at sbp.org.pk.
What is KIBOR + margin?
KIBOR (Karachi Interbank Offered Rate) is the benchmark rate set every working day and published by the State Bank of Pakistan. Most car, home and personal loans are priced as KIBOR plus the bank's margin, for example 1-year KIBOR + 4%, and the rate is reset when the KIBOR tenor rolls over — every year for 1-year KIBOR.
What is DBR and what limit do banks use?
DBR (debt burden ratio) is all your monthly loan instalments divided by your monthly income. SBP's prudential rules cap it at 40% for consumer loans such as car and personal loans; housing finance allows more, up to about 50%. Banks can apply lower limits of their own.
What are the SBP rules for car loans?
The last published SBP auto-finance rules require at least 30% down payment, cap car financing at Rs 3 million per person across all banks, and limit the tenure to 3 years for cars above 1000cc (5 years up to 1000cc). Rules change, so confirm with your bank.
Why does paying bi-weekly save interest?
Bi-weekly payments add up to 26 half-payments a year — the equivalent of 13 monthly payments — so the principal falls faster and less interest accrues.
Is the result exactly what my bank will charge?
It uses the same reducing-balance formula as banks (it matches, for example, Bank Alfalah's published personal loan example), so it is a close estimate. Your bank may round differently, use a different KIBOR date, or charge fees and taxes not entered here — your offer letter or key fact statement has the final figures.