Enter the car price, your down payment, the markup rate Bank Alfalah quotes you, and the tenure. The calculator shows your estimated monthly installment in PKR. It is a guide only. Bank Alfalah’s offer letter sets the real figure.

How to use the calculator

1. Pick a loan product. Choose Standard if you plan to pay the full amount in installments. Choose a residual value product if you want to leave part of the price for the end.
2. Pick the engine size: up to 1000 CC or above 1000 CC. This only affects the limit notes.
3. Enter the vehicle price in PKR.
4. Enter your down payment as a percentage. The tool starts at 30%.
5. Enter the annual markup rate from your bank quote. The tool does not suggest a rate.
6. Choose the tenure from 1 to 5 years.
7. Add a residual value percentage if it applies. Then press Calculate.

The result shows the monthly installment first. Below it you see the down payment, financed amount, total repayments and total markup.

How the calculation works

The tool uses the standard reducing-balance formula. Each month, markup is charged on the balance you still owe. Your payment covers that markup and part of the principal.

• Financed amount = price minus down payment.
• Monthly rate = annual rate divided by 12.
• Months = years times 12.
• Installment is the fixed payment that brings the balance to zero by the last month.

With a residual value, the tool treats it as one lump sum due at the end. It shrinks the monthly installment. You still owe it, plus the markup that builds on it while you wait.

If the rate is zero, the tool simply divides the financed amount (less any residual value) by the number of months.

Islamic products, such as Bank Alfalah Islamic Auto Finance, may use rentals and their own structure. Treat the result as a rough comparison, not a rental schedule.

Worked example

You want a PKR 3,000,000 car. The rate you enter is 15% a year. [CHECK: use the rate Bank Alfalah actually quotes; 15% is only an example.] You pay 30% down and choose 3 years.

• Down payment: 30% of 3,000,000 = PKR 900,000.
• Financed amount: PKR 2,100,000.
• Monthly rate: 15% / 12 = 1.25%.
• Months: 36.

The formula gives an installment of about PKR 72,797 a month. Over 36 months you repay about PKR 2,620,700. That means about PKR 520,700 is markup.

Now take a different case. Price PKR 2,000,000, 30% down, 0% rate, 3 years, 20% residual value. The financed amount is PKR 1,400,000 and the residual value is PKR 400,000. The monthly installment is (1,400,000 – 400,000) / 36 = PKR 27,778. A real loan would never have a 0% rate. This case only shows how the residual value works.

Reference table

These limits come from a third-party page that summarises the bank’s product, not from the bank. [CHECK: confirm every row on the Bank Alfalah auto loan page or with a branch.]

Item	Reported figure
Maximum financing	PKR 3,000,000 [CHECK: current limit]
Minimum down payment	30% [CHECK: current minimum]
Tenure	2 to 5 years [CHECK: current range]
Tenure above 1000 CC	Up to 3 years [CHECK]
Residual value, new car	Up to 50% [CHECK]
Residual value, used car	Up to 40% [CHECK]
Markup basis	Variable, linked to 1-year KIBOR plus a spread [CHECK: current KIBOR and spread]
Eligible vehicles	Locally assembled or manufactured [CHECK]

Tips and common mistakes

• Using an old rate. A KIBOR-linked rate moves. Ask the bank for today’s rate before you plan.
• Forgetting extra costs. Insurance or takaful, registration and processing charges are not in the estimate. [CHECK: list of fees on the bank’s schedule of charges.]
• Chasing a low installment. A longer tenure or a big residual value lowers the monthly payment. It raises the total markup.
• Ignoring the residual value. It is due at the end. Plan how you will pay it, sell the car or refinance.
• Not testing the rate. Run the tool at 2 points higher than your quote. If the payment is still comfortable, you have some room.
• Not comparing banks. Try the Faysal Bank car loan calculator, the HBL car loan calculator or the BOP car loan calculator with the same price and tenure.

FAQ

What markup rate should I enter?

Enter the rate Bank Alfalah quotes you. Its auto finance markup is variable and linked to KIBOR, so the rate changes over time. Check the current rate with the bank.

Is this the exact Bank Alfalah installment?

No. It is an estimate from a standard reducing-balance formula. The bank’s offer letter, fees, insurance or takaful, and rate reset rules decide the real figure.

How does a residual value change the installment?

A residual value is a part of the price you leave unpaid until the end of the tenure. Your monthly installment is lower, but you still owe that amount at the end.

What is the maximum tenure?

Public information on ranking pages suggests 2 to 5 years, with 3 years for cars above 1000 CC. Confirm the current limits with Bank Alfalah.

Does the calculator include insurance and fees?

No. Insurance or takaful, registration, processing and other charges are not included. Ask the bank for a full cost list.

This page is for general information. It is not financial advice or a loan offer. See our disclaimer. Bank Alfalah’s actual offer terms apply.