Gold (24K Tola)Rs. 242,300+1.2%
USD/PKR279.50+0.05%
KSE-10078,420-0.3%
Petrol (Ltr)Rs. 272.100.0%
Bitcoin$64,200+2.4%
Gold (24K Tola)Rs. 242,300+1.2%
USD/PKR279.50+0.05%
KSE-10078,420-0.3%
Petrol (Ltr)Rs. 272.100.0%
Bitcoin$64,200+2.4%

Auto Loan Calculator

Calculate Car Financing EMI & Leasing Costs

Auto Finance

Rs.
Rs.
Rs.
Rs.
Rs.
Monthly Installment (EMI)
Incl. Insurance
Pakistani Rupees

107,083

Financed Amount

Rs. Rs. 3,500,000

Down Payment

Rs. Rs. 1,500,000

Monthly Insurance

Rs. Rs. 10,417

Total Interest Paid

Rs. Rs. 2,299,972

Total Cost of Car

Rs. Rs. 7,924,972

This calculator provides an estimated EMI. Actual bank offers may vary due to floating KIBOR rates, processing fees, tracker charges, and exact days in the month. Car insurance is mandatory for auto loans in Pakistan and is typically bundled into your monthly payment.

The Ultimate Guide

Understanding Car Financing in Pakistan

Auto loans (or Car Ijarah in Islamic banking) allow you to pay for a car over several years. The bank purchases the car and leases it to you, or lends you the money against the car as collateral.

Interest Rates (KIBOR)

Banks usually charge a floating rate linked to the Karachi Interbank Offered Rate (KIBOR) plus a bank margin (e.g., KIBOR + 3%). If KIBOR changes annually, your monthly installment may be revised.

Mandatory Insurance (Takaful)

Banks require comprehensive insurance (or Takaful) to protect the asset. This usually costs 1.5% to 3% of the car's value annually. The calculator assumes the insurance cost is spread over 12 months and added to your EMI.

Frequently Asked Questions

Under Islamic Ijarah, the bank purchases the car and rents it to you. You pay a monthly rental fee. At the end of the tenure, the car is gifted or sold to you for a nominal token amount. The mathematical calculation for the monthly rental is often very similar to conventional EMI, but structured differently legally.
In most cases, banks offer floating rates linked to KIBOR, which is revised annually. If KIBOR goes up next year, your monthly installment will increase, and vice versa.
When you finance a car over 5 years at a high interest rate (e.g., 20%+), you end up paying a massive amount in interest. Plus, adding 2.5% annual insurance over 5 years adds another 12.5% of the car's value to your total cost.

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