We have developed a comprehensive simulator to study the polarization entangled quantum key distribution (QKD) system, which takes various imperfections into account. We assume that a type-II SPDC source using a PPLN-based nonlinear optical waveguide is used to generate entangled photon pairs and implements the BB84 protocol, using two mutually unbiased basis with two orthogonal polarizations in each basis. The entangled photon pairs are then simulated to be transmitted to both parties; Alice and Bob, through the optical channel, imperfect optical elements and onto the imperfect detector. It is assumed that Eve has no control over the detectors, and can only gain information from the public channel and the intercept resend attack. The secure key rate (SKR) is calculated using an upper bound and by using actual code rates of LDPC codes implementable in FPGA hardware. After the verification of the simulation results, such as the pair generation rate and the number of error due to multiple pairs, for the ideal scenario, available in the literature, we then introduce various imperfections. Then, the results are compared to previously reported experimental results where a BBO nonlinear crystal is used, and the improvements in SKRs are determined for when a PPLN-waveguide is used instead.