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Pakistan Home Loan Calculator

See the monthly instalment on a home loan or Islamic house finance in Pakistan, the total markup over the term, takaful costs, and how the balance falls year by year.

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How to use the home loan calculator

  1. Enter the property value. Banks use their own valuation, which can be lower than the asking price.
  2. Enter the financing %: the share of the value the bank pays. The rest is your own contribution.
  3. Enter the tenure in years, up to 30.
  4. Enter KIBOR and the bank's spread. The offer letter tells you which KIBOR (6-month or 1-year) and the spread.
  5. Enter the yearly takaful or insurance rate and the processing fee, if you know them.

How the instalment is calculated

Financing L = property value × financing % Monthly rate i = (KIBOR + spread) ÷ 12 Instalment M = L × i ÷ (1 − (1 + i)^−n) n = months Total markup = M × n − L Takaful (year) = takaful % × amount still owed at the start of the year

The instalment stays the same each month while the rate stays the same, but early instalments are mostly markup. As the balance falls, more of each payment goes to the principal. Takaful falls too, because it covers only what you still owe.

Worked example

The defaults are a Rs 15,000,000 house, 70% financing, 20 years, 6-month KIBOR 12.66% + spread 2.5% = 15.16%, takaful 0.5% a year and a Rs 25,000 fee.

  • Financing: 70% × Rs 15,000,000 = Rs 10,500,000. Your share is Rs 4,500,000.
  • Monthly rate: 15.16% ÷ 12 = 1.2633%, over 240 months
  • Instalment: Rs 10,500,000 × 0.012633 ÷ (1 − 1.012633^−240) = Rs 139,506
  • Total markup: Rs 139,505.83 × 240 − Rs 10,500,000 = Rs 22,981,398
  • Takaful over 20 years: about Rs 781,370
  • In year 1 you pay Rs 1,585,836 of markup and only Rs 88,234 of principal

KIBOR changes with the State Bank's policy rate. The 12.66% here is the SBP's 6-month KIBOR offer rate on 30 October 2026.

SBP rules for house finance

Rule Limit
Maximum financing (loan to value) 90% of the value, so at least 10% from you
Maximum tenure 30 years
Debt burden All loan instalments up to 65% of your net monthly income
Takaful or insurance Required, for the amount still owed
Property valuation By a PBA-panel valuer when financing is above Rs 10 million

Source: SBP Housing Finance Prudential Regulations 2026, updated 18 August 2026. These are the outer limits. Each bank sets its own lower limits on financing, age and income.

Conventional and Islamic house finance

A conventional home loan charges markup on the amount you still owe. Islamic banks mostly use diminishing musharakah: you and the bank buy the house together, you pay rent for the bank's share, and each month you also buy a small part of that share. As your share grows, the rent falls, and the house is fully yours at the end. The rent is usually benchmarked to KIBOR, so the monthly payment works out close to this calculator's figure. Ask your bank or a scholar if you want to understand the Shariah details.

Frequently asked questions

What is the maximum home loan tenure in Pakistan?

Up to 30 years under the State Bank's 2026 rules, which raised it from 20 years. Many banks also want the loan finished by an age such as 65 or 70, so older borrowers may get less.

How much of the house price will the bank finance?

SBP rules allow up to 90%, so you need at least 10% yourself, plus registration, transfer and legal costs. In practice, banks often finance 60% to 85%, depending on the property and your income.

How much income do I need for a home loan?

SBP rules let your total instalments reach 65% of your net monthly income. For the default Rs 139,506 instalment that means about Rs 214,624 a month. Banks may ask for more, especially if you have other loans.

Will my home loan instalment change?

Usually yes. Most home finance in Pakistan is variable: KIBOR is reset every 6 or 12 months and your rate is that KIBOR plus the same spread. A 2% rise on the default loan lifts the instalment from Rs 139,506 to about Rs 155,293.

Related calculators

  • Pakistan Car Loan Calculator — Monthly instalment, markup and total cost of car financing in Pakistan, with KIBOR, insurance and SBP limits.
  • Pakistan Salary Tax Calculator — Income tax on your salary for tax year 2026-27 under the Finance Act 2026, monthly and yearly, with take-home pay.
  • Mortgage Calculator — Your full monthly housing cost, including property tax, insurance, PMI and HOA fees.

Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.