See the real long-term cost of buying a home on a bank loan versus renting and investing the difference — for Pakistan’s rates and property market.
Your Numbers
Result
Cheaper Option
—
Buying
Monthly EMI—
Total Paid Over Tenure—
Est. Home Value at End—
Net Cost of Buying—
Renting
Total Rent Paid—
Down Payment Invested Grows To—
Investment Gain—
Net Cost of Renting—
What This Calculator Doesn't Tell You
The math is only half the decision
Property Isn't Liquid
Selling a house in Pakistan can take months, and often involves under-the-table cash components that complicate the real numbers. A savings account or mutual fund can be accessed in days.
Appreciation Isn't Guaranteed
This calculator lets you enter an appreciation rate, but real estate returns vary hugely by city, area, and timing. Treat your input as a guess, not a promise.
Renting Only Wins If You Actually Invest
The "renting is cheaper" result assumes you genuinely invest the down payment and the EMI-rent gap instead of spending it. If you won't do that reliably, the comparison doesn't hold.
Frequently Asked Questions
Not always. It depends heavily on the markup rate you're offered, how fast rent rises in your area, and how disciplined you'd actually be about investing the difference if you rented instead. Run your own numbers rather than assuming.
Rates vary by bank and change with State Bank policy. Get a quote from at least two or three banks (conventional and Islamic) before entering a number here — don't rely on a rate you saw months ago.
The math works the same way for an effective profit rate under Islamic financing (like Diminishing Musharakah), even though the underlying contract structure is different from a conventional loan. Use the effective annual rate your bank quotes you.
This calculator doesn't include them to keep the comparison simple, but they're real. If you're buying an apartment with monthly society dues, add that to your effective monthly cost mentally before deciding.
This tool provides an estimate for informational purposes only and is not registered financial advice. Property and loan decisions involve risks and costs beyond what's modeled here — consult your bank and a financial advisor before deciding. Read the full disclaimer.