Home Finance Calculator

The loan is the property price minus your down payment. The yearly rate is KIBOR plus the bank's spread (the calculator starts from the 1-year KIBOR offer rate, and you can switch to the 6-month one), divided by 12 for each month. The calculator finds the level instalment that repays the loan over your chosen period (the same formula as the loan calculator) and builds the full month-by-month schedule, then compares your instalment with the SBP debt burden limit. Net income means your take-home pay after tax; if you only know your salary before tax, the salary tax calculator works it out.

A Rs 15,000,000 home with 20% down needs a loan of Rs 12,000,000. At 16.05% (KIBOR 13.05% plus 3%) over 20 years the instalment is Rs 167,401. Over the full term you repay Rs 40,176,245, so the markup is Rs 28,176,245. On a net income of Rs 400,000 that instalment is 41.9% of income, inside the 65% limit; the same income supports a loan of up to Rs 18,637,879.

The period you choose moves the instalment and the total cost in opposite directions:

Stretching from 20 to 30 years lowers the instalment a little but adds Rs 18,091,464 of markup, because you owe most of the principal for much longer. If your budget allows, a shorter period or extra monthly payments save far more than they cost.

The State Bank's Prudential Regulations for Housing Finance (updated August 18, 2026) set the framework every bank must follow:

These are ceilings and floors for lenders, not what you will be offered. Each bank sets its own spread, documentation and limits, and decides on your income documents and credit record. The State Bank's rules also say banks must use PBA-approved income estimation models for borrowers without formal salary records, which helps self-employed buyers show their repayment capacity.

The government's Mera Ghar Mera Aashiyana (also written Ashiana) scheme lowers the rate on a first home. After a revision announced in February and March 2026, reports from Business Recorder and Profit describe these terms: loans up to Rs 10,000,000 for up to 20 years, a fixed 5% end-user rate (replacing the earlier 5% and 8% tiers), the government subsidising the markup for the first 10 years, and eligible homes of up to 10 marla or flats of up to 1,500 sq ft. Applications go through participating banks. The scheme is aimed at first-time buyers and is limited by its budget, so check eligibility with a bank before you plan around it.

The reports we read give the bank price after the subsidy as one-year KIBOR plus 3%, but do not say outright what the borrower pays once the subsidy ends, so the second row is an assumption. Treat it as an estimate and ask the bank for the post-subsidy terms in writing. Beware of unofficial websites and social media posts offering "fast-track registration" for the scheme; apply only through a bank.

• Floating rate risk. If KIBOR rises 2 points after 5 years, the example loan costs about Rs 2,902,951 more in total. Test your own case with the If KIBOR moves card.
• Extra payments. Adding Rs 20,000 a month to the example instalment saves Rs 12,797,530 of markup and ends the loan 7.8 years early.
• Buying costs. The down payment is not the only upfront cost. Budget for the bank's fees, property insurance or takaful, stamp duty, registration and the buyer's taxes; the property transfer tax calculator covers the federal advance taxes.
• Renting vs buying. Compare the rent of a similar home with the instalment plus upkeep and insurance before you commit; the monthly outflow can be higher when you buy.