Car Leasing Calculator

A car leasing calculator works by taking inputs like the vehicle cost, down payment percentage, loan term (tenor), and interest rate (KIBOR plus margin) to compute your monthly installment (EMI). It also factors in additional costs like Takaful insurance, processing fees, and tracker fees. The calculator then generates an amortization schedule showing how each payment breaks down into principal and interest, and how your loan balance decreases over time.

KIBOR (Karachi Interbank Offered Rate) is the benchmark interest rate used by banks in Pakistan for lending. In car leasing, financial institutions typically charge KIBOR plus a fixed margin (e.g., KIBOR + 4%). This combined rate determines your finance charges. KIBOR fluctuates with market conditions, which means if you have a variable rate lease, your EMI might change periodically based on KIBOR changes.

Making extra payments on your car lease can significantly reduce the total interest paid and shorten the loan term. Our calculator shows this comparison in the "With Extra (Savings)" tab. When you make extra payments, they go directly toward reducing the principal balance, which means less interest accrues on future payments. Regular extra payments (like quarterly payments in our calculator) can lead to substantial savings over the life of the lease.

Takaful is an Islamic alternative to conventional insurance that complies with Shariah principles. In car leasing, Takaful provides protection against damage, theft, or loss of the vehicle. It operates on principles of mutual cooperation and shared responsibility, where participants contribute to a pool that is used to help those who suffer losses. The Takaful rate is typically calculated as a percentage of the vehicle's value and is included in your up-front payments when taking a car lease.

The tracker fee in car leasing covers the cost of installing and maintaining a GPS tracking device in the leased vehicle. This tracker serves multiple purposes: it helps the leasing company locate the vehicle in case of theft, monitors vehicle usage according to lease terms, and may provide additional security features. The fee typically consists of an upfront tracker management fee for installation and setup, plus a monthly maintenance fee throughout the lease term.