Free calculator
Home loan calculator
Work out the monthly installment on a home loan in Pakistan from the price, your down payment, the KIBOR rate and the tenure, with the total markup, the balance year by year and the largest loan your income supports.
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Calculator
Work out your installment
Give the price, your down payment, the tenure and the rate. Add your income to see whether a bank would lend that much.
Your home loan
- Loan amount
- Rs 96 lakhAfter Rs 24 lakh down
- Share financed
- 80%Of the price, lent by the bank
- Total markup
- Rs 2.15 croreOver 20 years
- Total paid
- Rs 3.11 croreLoan and markup
If KIBOR rises by 2%, to 14.43%, at the first yearly reset, the installment goes up to Rs 143,675 from month 13: Rs 14,202 more a month, and Rs 32.38 lakh more markup over the loan.
Against your income
- Installments as a share of income
- 43.2%
- The bank's limit
- 65%
- Largest installment within it
- Rs 195,000
- Largest loan that income supportsOver 20 years at 15.43%
- Rs 1.45 crore
- Price that loan buysWith a down payment of 20%
- Rs 1.81 crore
An estimate at a steady rate, with KIBOR as of 29 September 2026. The bank's offer letter gives the exact installment, the processing fee and the yearly insurance.
Your loan
Year by year schedule
Rs 9,600,000 (96 lakh) over 20 years at 15.43%: what each year's installments pay, and what is still owed at the end of it.
| Year | Paid (Rs) | Loan repaid (Rs) | Markup (Rs) | Balance (Rs) |
|---|---|---|---|---|
| 1 | 1,553,668 | 77,734 | 1,475,935 | 9,522,266 |
| 2 | 1,553,668 | 90,614 | 1,463,055 | 9,431,653 |
| 3 | 1,553,668 | 105,628 | 1,448,041 | 9,326,025 |
| 4 | 1,553,668 | 123,130 | 1,430,539 | 9,202,895 |
| 5 | 1,553,668 | 143,531 | 1,410,137 | 9,059,364 |
| 6 | 1,553,668 | 167,314 | 1,386,355 | 8,892,050 |
| 7 | 1,553,668 | 195,037 | 1,358,632 | 8,697,014 |
| 8 | 1,553,668 | 227,353 | 1,326,316 | 8,469,661 |
| 9 | 1,553,668 | 265,024 | 1,288,645 | 8,204,637 |
| 10 | 1,553,668 | 308,937 | 1,244,732 | 7,895,700 |
| 11 | 1,553,668 | 360,125 | 1,193,543 | 7,535,575 |
| 12 | 1,553,668 | 419,796 | 1,133,872 | 7,115,779 |
| 13 | 1,553,668 | 489,354 | 1,064,315 | 6,626,425 |
| 14 | 1,553,668 | 570,436 | 983,232 | 6,055,989 |
| 15 | 1,553,668 | 664,954 | 888,714 | 5,391,035 |
| 16 | 1,553,668 | 775,133 | 778,535 | 4,615,902 |
| 17 | 1,553,668 | 903,568 | 650,101 | 3,712,334 |
| 18 | 1,553,668 | 1,053,283 | 500,385 | 2,659,051 |
| 19 | 1,553,668 | 1,227,806 | 325,863 | 1,431,245 |
| 20 | 1,553,668 | 1,431,245 | 122,423 | 0 |
| Total | 31,073,368 | 9,600,000 | 21,473,368 |
Markup is charged monthly on the balance still owed, which is why the early installments are mostly markup. On a floating rate the figures after each yearly reset change with KIBOR.
How it is worked out
From the price to the monthly installment
The bank lends the price less your down payment. On the example, a Rs 1.2 crore house with 20% paid down, that is a loan of Rs 96 lakh, 80% of the price. Banks call it home finance, most people call it a house loan, and it works like a mortgage anywhere: repaid in equal monthly installments over the tenure, with the house as security.
Each month the bank charges markup at a twelfth of the yearly rate on the balance still owed, and the rest of the installment repays the loan. The installment that clears the loan exactly by the last month is P × r × (1 + r)^n ÷ ((1 + r)^n - 1), where P is the loan, r is the yearly rate in percent ÷ 1,200 and n is the number of months. For Rs 96 lakh over 20 years (n = 240) at 15.43% (r = 0.012858), that is Rs 129,472 a month.
In the first month Rs 123,440 of that installment is markup and only Rs 6,032 repays the loan, because markup is charged on the whole Rs 96 lakh. As the balance falls the split turns round, which is why paying a loan off early saves so much markup. Over 20 years the markup comes to Rs 2.15 crore, 2.2 times the loan.
Rates and costs
KIBOR, Islamic home finance and the other costs
Most home loans in Pakistan float. The rate is KIBOR, the rate banks lend to each other at, plus a spread the bank fixes in your agreement: in September 2026 about 3% over 1-year KIBOR for a salaried borrower and 4 to 4.25% for the self-employed. The rate is reset once a year on the KIBOR of the day, and the bank then works the installment out again on what is still owed, over the months left.
KIBOR follows the SBP policy rate, which was raised to 11.5% in April 2026 and held there on 14 September 2026. On 29 September 2026 1-year KIBOR was 12.43%. On the example loan, a 2% rise at the first reset would add Rs 14,202 to every installment from month 13, and Rs 32.38 lakh of markup over the loan. A fall works the same way in your favour.
Islamic banks offer diminishing musharakah instead of a loan. You and the bank buy the house together, you pay rent on the bank's share, and every month you buy a little more of that share until the house is yours. The rent is priced like markup, on KIBOR plus a spread and reset once a year, so the monthly amount follows the same shape and this calculator works for it too: read markup as rent. Some Islamic banks also set a floor and a ceiling on the rate.
The installment is not the whole cost. Banks charge a processing fee, have the house valued and its papers checked, and SBP rules require it to be insured, or covered by takaful, for the amount still owed. Before you sign, the bank has to show you every fee, the charge for paying off early and the yearly percentage rate, with nothing hidden.
The federal government's Apna Ghar programme, launched on 30 April 2026, lends up to Rs 1 crore for up to 20 years at a fixed 5% for the first 10 years, after which the rate moves to the market rate. It was open to applicants through an online portal when reported on 24 July 2026. To see an installment for its first 10 years, choose One fixed rate and enter 5%.
Applying
What banks usually ask for
Under SBP rules banks use a short standard application form, with one version for salaried people, one for business owners and one for people with informal incomes. An application runs in this order.
Check you qualify
Banks lend to salaried people, business owners and the self-employed, and to Pakistanis living abroad. They look for a steady income and a set time in the job or the business, and under SBP rules all your loan installments together may take up to 65% of your take-home income. A co-applicant's income, such as a spouse's, can be added.
Gather the papers
Your CNIC and two photographs, the allotment, transfer or title papers of the house, and proof of income: for a salaried person the latest salary slip, or six months of bank statements showing the salary, and a letter giving your time in the job; for a business, proof of the business such as an NTN certificate, and six months of bank statements. With an informal income, a rent agreement, utility or phone bills and school fee challans can stand in.
The bank checks you and the house
The bank checks your credit record with the SBP's credit bureau or a licensed private one, has the house valued, by a valuer on the banks' approved panel for a loan over Rs 1 crore, and has its title checked.
Read the offer
The terms come in writing, in Urdu and English, with every fee, the charge for paying off early and the yearly percentage rate. You pay the down payment and the processing fee.
Mortgage and payment
The house is mortgaged to the bank and insured for the amount owed, the bank pays the seller, and your installments begin, usually by direct debit from your account.
Terms
Home finance terms
- KIBOR
- The Karachi Interbank Offered Rate, the rate banks lend to each other at, fixed every business day and published by the SBP. Home loans float on it, mostly on the 1-year rate: 12.43% on 29 September 2026.
- Spread
- What the bank adds to KIBOR for its costs and risk. It is set in the loan agreement and stays the same while KIBOR moves.
- Markup
- The word Pakistani banks use for interest: what the bank charges each month on the balance still owed.
- Tenure
- How long the loan runs. Banks offer 3 to 25 years; SBP rules allow up to 30. A longer tenure lowers the installment and raises the total markup.
- Debt burden ratio
- All your monthly loan installments as a share of your take-home income. SBP rules cap it at 65% for a home loan, and a bank may set a lower limit of its own.
- Loan to value
- The loan as a share of the property's value. SBP rules allow up to 90%; banks usually lend 70 to 80%, and the rest is your down payment.
- Diminishing musharakah
- The Islamic form of home finance. You and the bank own the house jointly; you pay rent on the bank's share and buy that share out in monthly parts until the house is yours.
- Early settlement
- Paying off part or all of the loan before the tenure ends. It saves the markup still to come; the bank may charge a fee for it, which it has to tell you before you sign.
Questions
Home loan questions
Still have a question?
Ask our team during Pakistan business hours, in English or Urdu.
+92 333 2466662Chat on WhatsAppHow much home loan can I get on my salary?
Under SBP rules all your loan installments together may take up to 65% of your take-home income. On Rs 150,000 a month that is Rs 97,500, which repays a loan of about Rs 72 lakh over 20 years at 15.43%, or about Rs 74 lakh over 25 years. With 20% down, the 20-year loan buys a house of about Rs 90 lakh. Installments you already pay on a car or a personal loan come off first, and a bank may use a lower limit, so put your own figures in the calculator.
What is the monthly installment on a Rs 50 lakh home loan?
At 15.43% a year (1-year KIBOR of 12.43% on 29 September 2026 plus a 3% spread), Rs 81,989 a month over 10 years, Rs 71,458 over 15 years and Rs 67,434 over 20 years. Over 20 years the markup comes to Rs 1.12 crore, 2.2 times the loan.
What is the KIBOR rate for home loans today?
On 29 September 2026 1-year KIBOR was 12.43% and 6-month KIBOR 12.05%, the offer rates the SBP publishes. Banks price most home loans at 1-year KIBOR plus about 3% for a salaried borrower, 15.43% a year in all, and 4 to 4.25% over KIBOR for the self-employed. The SBP policy rate, which KIBOR follows, was held at 11.5% on 14 September 2026.
How much down payment do banks ask for on a house?
SBP rules let a bank lend up to 90% of the property's value, so at least 10% down. In practice banks usually lend 70 to 80% and ask for 20 to 30% down. A bigger down payment cuts the installment and the markup: on a Rs 1.2 crore house over 20 years at 15.43%, 30% down instead of 20% saves Rs 16,184 a month and Rs 26.84 lakh of markup.
What is the longest tenure for a home loan in Pakistan?
Banks offer 3 to 25 years. The SBP raised its own limit from 20 to 30 years on 18 August 2026, but the bank products checked in September 2026 still stopped at 25. A longer tenure lowers the installment and adds markup: on Rs 96 lakh at 15.43%, 25 years costs Rs 126,171 a month against Rs 129,472 over 20, and Rs 67.78 lakh more markup in all.
What happens to my installment when KIBOR goes up?
On a floating rate the bank resets the rate on the KIBOR of the day, usually once a year, and works the installment out again on what you still owe over the months left. On the example loan, Rs 96 lakh over 20 years, a 2% rise at the first reset takes the installment from Rs 129,472 to Rs 143,675. A fall in KIBOR brings it down the same way. A rate fixed for the whole loan does not move.
Is Islamic home finance cheaper than a conventional home loan?
Not as a rule. The rent under diminishing musharakah is priced like markup, on KIBOR plus a spread and reset once a year, and the Islamic and conventional banks checked in September 2026 quoted salaried borrowers the same 3% over KIBOR. The difference is the contract: joint ownership and rent instead of a loan and interest. Compare the rate, the fees and the terms for paying off early from both.
Is there a government scheme for home loans in 2026?
Yes. The federal government's Apna Ghar programme, launched on 30 April 2026, lends up to Rs 1 crore for up to 20 years at a fixed 5% for the first 10 years, and was open to applicants online when reported on 24 July 2026. On a Rs 50 lakh loan over 20 years that is Rs 32,998 a month for the first 10 years. If the rate then moved to 1-year KIBOR plus 3%, at the KIBOR of 29 September 2026, the installment would rise to Rs 51,015. Check the terms and who qualifies with a bank in the programme.
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