# Personal Loan Calculator Pakistan

Source: Searchable (https://searchable.pk/tools/finance/personal-loan-calculator)
Type: Calculator
Rates reviewed: 15 Sept 2026
Retrieved: 15 Sept 2026

Monthly instalment and total mark-up on a personal or salary loan in Pakistan for any amount, rate and tenure, with the year-by-year balance so you can see how much is interest.

Version 1.0.0. Inputs: Loan amount, Annual mark-up rate, Tenure, Processing fee.

## Worked example (default inputs)

- Loan amount: 1000000 PKR
- Annual mark-up rate: 22.25 %
- Tenure: 3
- Processing fee: 1 %

**Monthly instalment: Rs 38,320**

Borrowing Rs 1,000,000 at 22.3% over 3 years costs Rs 38,320 a month. You repay Rs 1,379,517 in total, Rs 379,517 in mark-up plus Rs 10,000 processing fee. Effective cost: 39% of the amount borrowed.

### Cost of the loan

- Amount borrowed: Rs 1,000,000
- Total mark-up (22.3% p.a.): Rs 379,517
- Processing fee (upfront): Rs 10,000
- Total repaid: Rs 1,389,517
- Net cash you receive: Rs 990,000

### Balance over time

- After year 1: Rs 736,897 left · Rs 196,736 mark-up paid
- After year 2: Rs 408,899 left · Rs 131,841 mark-up paid
- After year 3: Rs 0 left · Rs 50,939 mark-up paid

## How it is calculated

Instalment = P × r ÷ (1 − (1 + r)^−n), where P is the amount, r the monthly rate (annual ÷ 12) and n the number of months, the standard reducing-balance formula used by Pakistani banks for personal, salary and Islamic personal finance (where the "profit rate" plays the same role).

Unsecured personal loans in 2026 are priced at 1-year KIBOR (~12.3%) plus 8–14% depending on employer category and salary-transfer status, with a 1–2% processing fee plus FED deducted upfront. The year-by-year table shows how mark-up front-loads: most of the early instalments are interest.

## Frequently asked questions

**What is the personal loan interest rate in Pakistan?**

Typically 18–28% per year in 2026: 1-year KIBOR plus the bank's spread, lower for salaried employees of approved companies and for customers who transfer their salary account.

**How much personal loan can I get?**

Banks usually lend up to 10–20 times net monthly salary, capped by SBP's debt-burden rule that total instalments stay under about 50% of net income.

**Is early repayment allowed?**

Yes, usually with a 2–5% early settlement charge on the outstanding balance; some banks waive it after half the tenure.

**Islamic personal finance: is it the same calculation?**

The instalment maths is the same; the structure is a sale (murabaha) or service (ijarah/tawarruq) with a fixed profit rate instead of interest.

## Sources

- State Bank of Pakistan: KIBOR and consumer financing regulations (State Bank of Pakistan): https://www.sbp.org.pk/

How to cite: "Personal Loan Calculator Pakistan", Searchable, rates reviewed 15 Sept 2026, https://searchable.pk/tools/finance/personal-loan-calculator