Car finance calculator Pakistan
This calculator estimates a car-finance installment in Pakistan using the reducing-balance method: installment on the financed amount (price minus down payment) at your bank's markup rate over the tenure. It also checks the current SBP rules — 30% minimum down payment, a 3-year tenure cap above 1000cc (5 years up to 1000cc), a PKR 3 million exposure cap, and the ban on financing imported vehicles — and adds advance tax by filer status.
| Calculator | General car finance (all banks) |
|---|---|
| Type | Conventional (reducing-balance markup) |
| Method | Installment on financed amount × rate × tenure, reducing balance |
| SBP rules | 30% down · 3yr >1000cc / 5yr ≤1000cc · PKR 3m cap · no imported |
| Advance tax | Value-based by engine slab, filer vs non-filer |
| Last verified | 2026-07-22 |
Prices are indicative (reviewed 2026-07-22). Edit the price below to match your quote.
Monthly installment
PKR 106,333
Maximum tenure: SBP caps auto-finance tenure at 3 years (36 months) for this engine capacity (above 1000cc). You entered 60 months.
Reduce the tenure to 36 months or fewer.
Maximum exposure: The financed amount (PKR 3,850,000) exceeds the SBP per-person auto-finance cap of PKR 3,000,000.
Increase the down payment so the financed amount is at most PKR 3,000,000.
- Vehicle price
- PKR 5,500,000
- Down payment
- PKR 1,650,000
- Financed amount
- PKR 3,850,000
- Total markup
- PKR 2,529,969
- Total repayment
- PKR 6,379,969
- Advance tax (filer)
- PKR 110,000
First-year cash needed ≈ PKR 1,866,333
Down payment + processing fee + advance tax + first installment. Registration, tracker and Takaful/insurance are extra.
An estimate, not an official bank quotation. Rates, fees and taxes change — confirm with the bank and FBR. Nothing is uploaded; the calculation runs in your browser.
How a car finance instalment is calculated in Pakistan
The monthly installment is the level payment that amortises the financed amount — the vehicle price minus your down payment — over the tenure at the markup rate, computed on a reducing balance.
Installment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
- P = financed amount (price − down payment)
- r = annual markup rate ÷ 12
- n = tenure in months
The SBP rules every car loan in Pakistan must follow
These limits are set by the State Bank, not by the bank you apply to, so no amount of negotiating moves them. They are the reason a dealer's “easy instalment” offer on a 1300cc car cannot legally run for five years.
- Minimum down payment: 30% of the vehicle's value for most vehicles. Locally assembled cars up to 1000cc, local electric vehicles and Roshan Apni Car are exempt from this tightened floor.
- Maximum tenure: 3 years above 1000cc, 5 years up to 1000cc. A shorter cap means a much larger instalment on a bigger car — this catches more buyers than the down payment does.
- Exposure cap: PKR 3,000,000 per person in auto finance across ALL banks at once, not per bank.
- Imported vehicles: not eligible for bank auto financing, new or used. Only locally assembled or manufactured vehicles qualify.
- Debt burden: total obligations are assessed against your income under the prudential regulations, so existing loans and card limits reduce what you can borrow.
Source: SBP — BPRD Circular Letter No. 29 of 2021 and No. 19 of 2022 (Prudential Regulations for Consumer Financing, auto). View circular. Confirmed against SBP's primary BPRD circulars: 30% down payment, tenure 3 years above 1000cc / 5 years up to 1000cc, PKR 3m per-person aggregate cap, imported vehicles ineligible, and exemptions for locally-assembled vehicles up to 1000cc, local EVs and Roshan Apni Car. No SBP circular repealing or relaxing this regime was found for 2026, but a fresh 2026 reaffirmation was not located either — re-check sbp.org.pk circulars. The DBR is shown at the base 50%; a reported tightening to 40% could not be confirmed against the primary regulation.
Car finance compared: five Pakistani banks
Ranked by the cheapest rate each bank publishes, at the 1-year KIBOR of 12.19% (3 September 2026). Two of the five do not publish a rate at all — which is a real finding, not a gap in this table. You cannot compare a lender that will only quote you after you apply, and Car Ijarah is a lease that Meezan prices per customer by design.
| Bank & product | Best published markup | All-in today | Processing fee | Min income | Used cars |
|---|---|---|---|---|---|
| Bank AlfalahAlfalah Auto Loan | KIBOR + 3.50%Brand new or used, locally assembled, 2 years | 15.69% | Not published | PKR 30,000 | Ask |
| MCB BankMCB Car4U | KIBOR + 4%MCB account holder (ETB), 1–5 years | 16.19% | PKR 12,000 | PKR 40,000 | Ask |
| UBLUBL Drive | KIBOR + 4.25%Existing customer, 1–3 years | 16.44% | Not published | PKR 35,000 | Up to 9 yrs |
| HBLHBL CarLoan | Not published | — | Not published | Not published | Ask |
| Meezan BankCar Ijarah | Not published | — | Not published | Not published | Ask |
The markup column is the part that compounds, but the difference between the cheapest and dearest published spread here is under two percentage points. On a PKR 3,000,000 facility that is real money, and still smaller than the gap a longer tenure makes — so compare the tenure cap for your engine size before you compare the rate.
Each figure links to its source on that bank's own page. Rates read 2026-09-06; KIBOR from State Bank of Pakistan — key indicators snapshot (sbp.org.pk home page).
The cash you actually need on day one
Buyers budget for the down payment and are then surprised at the showroom. The down payment is usually a little over half of what you have to produce before you can drive away.
| Down payment | At least 30% of the vehicle's value under the SBP floor. More if the bank asks for it, or if you want a smaller instalment. |
|---|---|
| Processing / documentation fee | A few thousand rupees to over ten thousand, depending on the bank. Some banks charge it only on approval. |
| Advance tax at registration | A percentage of the vehicle's value by engine slab, and materially higher if you are not on the Active Taxpayers List. |
| Registration and number plate | Provincial Excise charges, which differ by province and engine size. |
| First year's insurance or Takaful | Comprehensive cover is compulsory while the bank has an interest in the vehicle. Some banks let you finance it for extra markup. |
| Tracker | Required by most banks on financed vehicles. Sometimes bundled free, sometimes charged. |
| First instalment | Often due before delivery. |
Ask every bank for these as one written total before you compare monthly instalments. A bank half a percent cheaper on markup can easily be dearer once its fee and insurance arrangement are in.
How to choose between five banks without getting it wrong
In roughly the order that changes the number most:
- Your engine size decides your tenure, and tenure dominates. Above 1000cc the SBP caps you at three years at every bank. The same car over three years instead of five is a far larger instalment than any rate difference between these five banks would produce.
- Check whether you already bank there. MCB and UBL both price existing customers below new ones — half a percentage point at MCB, half at UBL. That is free money for opening an account you may want anyway.
- Compare the all-in rate, not the spread. Every conventional bank here quotes as KIBOR plus a spread, so the spreads are comparable — but only against the same KIBOR on the same day, which is what the table above does.
- Add the fee and the insurance. A published processing fee is a fact you can compare; an unpublished one is a number you will only learn after applying.
- Decide on the balloon before you are sold one. Residual-value products lower the monthly payment by leaving a large sum owed at the end. That suits someone who intends to sell or refinance the car at that point, and traps someone who does not.
KIBOR-linked means your instalment can rise
Every conventional facility in the table above is priced off the 1-year KIBOR and resets — monthly at Bank Alfalah, on the loan anniversary for the applicable rate. That is not a detail. Pakistani KIBOR has been in single digits and above twenty percent within the memory of anyone currently repaying a car loan, and the instalment follows it.
Before you sign, work out the instalment at a KIBOR several points above today's and ask yourself whether you could still pay it. The calculator above takes any rate you type, so model the bad case rather than the quoted one. If a fixed-rate option is offered, compare what the certainty costs — it is usually priced in.
Common mistakes when comparing car finance in Pakistan
- Assuming the old 20% down payment still applies — the SBP floor is 30% for most vehicles.
- Expecting a 5- or 7-year tenure on a car above 1000cc, where the cap is 3 years.
- Trying to finance an imported car through a bank, which is not permitted.
- Forgetting advance tax, registration, tracker and Takaful when budgeting the first-year cash.