Car Loan Calculator for Pakistan
Enter the car price, your down payment, the rate you have been offered and the term. The calculator shows the monthly instalment, the total interest you will pay, and what the car actually costs you by the end.
Monthly instalment
Rs 46,364
- Loan amount
- Rs 1,750,000
- Number of instalments
- 60
- Total interest
- Rs 1,031,858
- Total cost (incl. down payment)
- Rs 3,531,858
An estimate using standard amortisation. Banks and Islamic financing institutions add processing fees, insurance and other charges that are not included here, so treat this as the floor of what you will pay.
How car financing works in Pakistan
Most car finance here is a standard amortising loan: you pay the same amount every month, but early instalments are mostly interest and later ones mostly principal. That is why paying off a loan early saves less than people expect in the final years, and a great deal in the first.
Banks typically require a down payment of 20–30% of the car's value, and the rate you are offered depends on the policy rate, your income documentation and whether you bank with the institution already. Islamic financing structures the transaction differently but produces a comparable monthly figure, so compare the total cost rather than the label.
The number this calculator gives you is the floor. Processing fees, mandatory comprehensive insurance, tracker charges and documentation costs sit on top, and insurance in particular is a recurring annual cost for the life of the loan. Ask any lender for the total cost of credit in writing, not just the monthly instalment.
Frequently asked questions
How is the monthly car instalment calculated?
Using the standard amortisation formula, which spreads principal and interest evenly across the term so every payment is the same size. The split changes over time: early payments are mostly interest, later ones mostly principal.
How much down payment do I need for a car loan in Pakistan?
Banks generally require 20–30% of the vehicle's value as a down payment, though this varies by institution and by whether the car is new or used. A larger down payment reduces both the monthly instalment and the total interest you pay.
What costs are not included in this calculator?
Processing and documentation fees, comprehensive insurance (usually mandatory for the life of the loan), tracker installation charges and any early settlement penalty. Ask the lender for the total cost of credit rather than comparing monthly instalments alone.
Is it cheaper to buy a car on cash or on finance?
Cash is always cheaper in absolute terms, because you pay no interest. Finance makes sense when the alternative is not buying, or when you would rather keep the capital available. Use the total cost figure here to see exactly what the convenience is costing you.