Home Loan EMI Calculator Pakistan 2026

Reference rates: July 03, 2026 · Verify with your bank before decisions.

Calculate your monthly home financing installment using the current State Bank of Pakistan (SBP) policy rate and typical commercial bank markups. Works for Meezan, HBL, MCB, UBL, and Bank Alfalah home finance products.

Current rates in Pakistan (April 2026)

How home loan EMI is calculated

Your Equated Monthly Installment (EMI) is a fixed amount paid every month for the entire loan tenure. It covers both principal (the amount you borrowed) and markup (the bank's profit). Early installments are markup-heavy; later ones pay down principal faster.

The standard formula is:

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)

Where P is principal, r is monthly markup rate (annual ÷ 12 ÷ 100), and n is number of monthly installments.

Example: PKR 50 Lakh home loan at 16% for 20 years

Using the default rate of 16% (SBP 11% + 5% bank markup), a 20-year home financing of PKR 5,000,000:

• Monthly EMI: approximately PKR 69,563
• Total amount payable: approximately PKR 1,66,95,096
• Total markup (interest): approximately PKR 1,16,95,096

The total markup is more than 2× the original loan — this is typical for long-tenure loans at Pakistan's current rates. Shortening tenure to 15 years roughly cuts total markup by 25–30%.

Conventional vs Islamic home financing

Pakistan has a large Islamic banking sector offering Shariah-compliant alternatives. The most common structures are:

• Diminishing Musharakah — used by Meezan Bank, Al Baraka, Faysal Islamic. You and the bank jointly own the property; you gradually buy out the bank's share with monthly rent + equity payments.
• Ijarah — the bank owns the property and leases it to you. After the lease ends, ownership transfers to you.
• Murabaha — less common for homes. Bank buys the property and resells it to you at a fixed profit margin, payable in installments.

Effective monthly payments for Islamic products are similar to conventional — the structure differs legally, not economically.

Subsidized schemes — Mera Pakistan Mera Ghar

The government's Mera Pakistan Mera Ghar (MPMG) scheme offers subsidized rates for first-time buyers in specific housing categories. Typical rates are 3% (first 5 years) rising to 7% (later). Eligibility depends on income, property size, and region. Our calculator doesn't auto-apply these — enter the subsidized rate manually if you qualify.