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Mortgage Calculator

Calculate monthly mortgage payment, total interest, and full cost of your home.

🏡Calculator

Home Price(PKR)

Down Payment(PKR)

Annual Interest Rate(%)

Loan Term

What is a Mortgage?

A mortgage is a long-term loan used to purchase real estate, where the property itself serves as collateral. Unlike a simple personal loan, a mortgage involves complex calculations because the interest is compounded monthly over a very long period — often 15 to 30 years. The monthly mortgage payment covers interest charges on the outstanding balance, principal repayment that reduces the loan balance, and in many countries also includes property taxes and insurance (known as PITI — Principal, Interest, Taxes, Insurance). Understanding your mortgage payment before buying is essential to avoid financial strain.

How to Use This Calculator

Enter the home price you are considering purchasing. Then enter your planned down payment — the upfront amount you will pay from your own funds. The difference becomes your loan amount. Enter the annual interest rate offered by your bank and select the loan term (typically 20 or 30 years in Pakistan). Click Calculate to see your monthly payment, total interest over the entire loan, and the true all-in cost of the home including financing charges.

💡 Pro Tips

✓A 20% down payment avoids PMI (Private Mortgage Insurance) and significantly reduces your monthly payment.
✓Choosing a 15-year mortgage over 30 years saves an enormous amount in interest — sometimes 50% of the loan amount.
✓Get pre-approved by a bank before house hunting so you know your exact budget.
✓Even small extra payments made monthly reduce your principal faster and can shave years off the mortgage.
✓Compare effective rates across banks — a 0.5% difference on a 30-year mortgage is worth hundreds of thousands of rupees.

Who Uses This Calculator?

First-time homebuyers use the mortgage calculator to understand affordability before speaking to a bank. Real estate investors calculate returns against financing costs. Current homeowners evaluate whether refinancing makes financial sense. Banks and lenders use mortgage calculations to determine loan eligibility. Property developers use it to project buyer affordability in different price brackets.