Home loan calculator
The monthly instalment, and — the number that changes minds — what the loan costs in total over its life.
Last checked 20 July 2026 · free, no sign-up
Look at the total, not the instalment
Mortgage conversations happen in monthly instalments because that is what feels affordable. The number that actually describes the decision is the total repaid over the term, and on a long Pakistani home loan the interest alone routinely exceeds the amount borrowed.
Shortening the term raises the instalment and cuts the total sharply. Comparing a 20-year and a 15-year run of the same loan is the most useful two minutes you can spend with this calculator.
The floating-rate problem
This is a fixed-rate illustration, and most Pakistani home finance is not fixed. It is priced at KIBOR plus a spread and re-prices as rates move, so your instalment can rise during the life of the loan.
The SBP policy rate is currently 11.5% and 6-month T-bills yield about 11.79% (macro layer, 2026-07-24). Home finance sits above these, not at them. Run the calculator two or three points above your quoted rate. If that version of the instalment would break you, the loan is too large — not the rate too high.
What is not included
Processing fees, legal and transfer charges, stamp duty, insurance, property tax and maintenance are all real costs of owning and none of them appear here. This calculates the loan and nothing else.
FAQ
Common questions
What rate should I enter?
The one your bank actually quotes. Pakistani home finance is normally priced at KIBOR plus a bank spread, so there is no single market rate to look up — and Henneth does not carry a live KIBOR feed, so the field is deliberately left for you to fill rather than pre-filled with a guess.
Why is my instalment fixed here when my bank re-prices?
Because this is a fixed-rate illustration, which is what every mortgage calculator produces. Most Pakistani home finance is floating: as KIBOR moves, your instalment moves with it. Treat the figure here as a snapshot at one rate, and run it again a few percentage points higher to see what a rising-rate year would do to you.
Is this Islamic (Shariah-compliant) home finance?
No. The maths here is a conventional amortising loan. Diminishing musharakah and ijarah products used by Islamic banks in Pakistan are structured differently, and while the monthly outflow can look similar, the calculation and the contract are not the same thing.
Does it include the other costs of buying?
No. Processing fees, legal and transfer costs, stamp duty, property taxes, insurance and maintenance are all real and none are here. This calculates the loan only.
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Henneth reads PSX companies in plain English — what the business earns, what it's worth, what changed this week. Research, not advice.