T-Bill Calculator

A Market Treasury Bill (MTB) pays no coupon. The government sells it for less than its face value and repays the face value on the maturity date, so your profit is the discount. The State Bank auctions four tenors: 1 month (28 days), 3 months (91 days), 6 months (182 days) and 12 months (364 days). At each auction it announces a cut-off yield, and bids at or below it are accepted. A competitive bid may be filled at a different yield from the cut-off, and a non-competitive bid is filled at the weighted average yield of the accepted bids, which is a little below the cut-off.

The yield is a simple annual rate on a 365-day year, so the profit on a 91-day bill is 91 ÷ 365 of the yearly yield. The calculator also converts that to a compounded rate (what you would earn if you rolled over at the same yield all year), so bills of different lengths can be compared with each other and with National Savings and bank deposits.

Rs 1,000,000 in a 3-month bill at the October 28, 2026 cut-off of 12.4261% buys a face value of Rs 1,030,980 at Rs 96.9951 per Rs 100. The discount is Rs 30,980. A filer pays Rs 4,647 withholding tax (15%) and keeps Rs 26,333 after 91 days, a net return of 10.56% a year, or 10.99% compounded.

Working the other way, if you want exactly Rs 1,000,000 at maturity from a 12-month bill, you pay Rs 886,095 today.

The 12-month bill pays the highest yield, but a 1-month bill rolled over keeps your money flexible. If yields stay where they are, buying four 3-month bills in a row (364 days) turns Rs 1,000,000 into about Rs 1,109,567 after tax, against Rs 1,109,265 from one 12-month bill.

The discount is profit on debt. For individuals in tax year 2027, withholding tax on government securities is 15% for filers and 30% for non-filers. Companies and associations of persons pay 20% and 40%. For an individual, the tax withheld is final up to Rs 5 millionof profit in the year, with a minimum-tax regime above that. If you roll a bill over, the discount on each bill is taxed when it matures, which is why the calculator reinvests the after-tax proceeds.

Bank deposits are taxed higher (20% for filers), so the tax gap adds to the yield gap in favour of bills. See where this income falls in your return with the income tax calculator.

• Through a bank. A bank that deals in government securities can open an Investor Portfolio Securities (IPS) account for you and place your bid at the State Bank auction. Ask for a non-competitive bid, which is filled at the auction's weighted average yield, a little below the cut-off, and avoids guessing it.
• Through a broker. Brokers that deal in government securities can bid for you and hold the securities in your account.
• Through a fund. Money market and income mutual funds hold T-bills for you, with daily liquidity but fund-level costs and their own tax treatment. The lump sum calculator shows what a fund could grow to.
• From overseas. Overseas Pakistanis can use a Roshan Digital Account, read the Roshan Digital Account guide, and ask their bank which government securities it offers.

Minimum amounts, fees and bidding deadlines differ between banks and brokers, so confirm them before you plan around a figure. The State Bank holds bill auctions regularly, roughly every two weeks, and publishes the calendar and the results on its website.

• Rollover compounds, but only if yields hold. Each rollover buys at the yield of that day. Use the roll it over card to test a lower yield for later bills.
• Price and yield move in opposite directions. A higher yield means a lower price per Rs 100. If you sell before maturity, you get the market price of that day.
• Compare after tax, not before. A bill at 12.65% gives a filer about 10.75% a year after tax.
• Check real returns. Compare the net yield with price rises using the inflation calculator.
• Longer maturities. For multi-year government paper with a coupon, use the PIB calculator.