Car Loan Calculator Pakistan

One calculator for every bank

Banks in Pakistan, including HBL, Meezan Bank, UBL, Bank Alfalah, MCB, Faysal Bank and BankIslami, all price car finance with a markup (interest) or profit rate. The installment depends only on four things: the car price, your down payment, the rate and the tenure. Enter the rate your bank quotes and you get its installment estimate.

Reducing balance and flat rate

With reducing balance pricing, markup is charged on what you still owe, so it falls over time. A flat rate charges markup on the full amount for the whole tenure, so a 12% flat rate over five years costs about the same as a reducing-balance rate of roughly 20%. Always ask which method applies and compare offers using the total cost.

Example

A Rs 4,000,000 car with 30% down means financing Rs 2,800,000. At 15% a year over 5 years, the installment is about Rs 66,600 a month, and the total markup is about Rs 1.2 million.

Check before you sign

• Conventional loans often use a rate linked to KIBOR plus a spread, so the rate can change during the tenure. Islamic products such as Car Ijarah use a rental structure, but the monthly payment works out in a similar way.
• Processing fees, insurance or takaful, tracker and registration costs are usually extra.
• Banks set their own minimum down payment and maximum tenure.