Financing guide
Home Loan Calculator Pakistan
Use this home loan calculator to work out the monthly installment on a Pakistani bank home loan. Enter the loan amount, the annual markup rate and the tenure in years to see your EMI, the total markup payable, and the total cost of the loan. The calculator uses the standard reducing-balance EMI formula used by banks across Pakistan.
Home loan calculator
Enter your loan amount, annual markup rate and tenure to estimate your monthly installment, total markup and total payable amount.
This calculator gives an estimate only. Actual bank terms and KIBOR-linked markup rates vary, and your bank’s final offer will depend on its policies, your profile and prevailing rates. This is not financial advice — always confirm the final terms with your bank before committing.
Frequently asked questions
How is the monthly installment (EMI) calculated?
The calculator uses the standard reducing-balance EMI formula used by banks: EMI = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r is the monthly markup rate (annual rate ÷ 12 ÷ 100) and n is the total number of monthly payments. If the markup rate is zero, the monthly payment is simply the loan amount divided by the number of months.
What markup rates do Pakistani banks charge on home loans?
Pakistani banks typically price home loans off a benchmark such as the KIBOR (Karachi Interbank Offered Rate) plus a bank spread, so rates move with State Bank of Pakistan policy decisions. Because offers differ between banks and change over time, treat any figure you see here as a starting point and confirm the current markup rate with your bank before applying.
Does a longer tenure reduce my monthly payment?
Yes — spreading the loan over more years lowers each monthly installment, because the amount is divided over more payments. The trade-off is that you pay more total markup over the life of the loan. Try different tenures in the calculator above to balance an affordable installment against the total cost.