Islamic Mortgage Calculator

Estimate the monthly payment for a riba-free home purchase, based on the property price, your own share and the institution's profit rate.

This halal mortgage calculator estimates what a Sharia-compliant home purchase costs each month. Under a diminishing Musharaka or Ijara arrangement there is no interest: you and the institution co-own the property, and each payment buys back a slice of its share while paying rent on the part you don't yet own. Enter the price, your down payment and the annual profit rate to see the monthly payment, the total profit you pay and the full amount payable over the term.

Your home finance

Monthly payment

$1,870.69

$320,000 financed over 25 years at 5%

Financed amount
$320,000
Total profit paid
$241,206
Total payable
$561,206

Total payable

$561,206

  • Financed amount57%
  • Profit / rent43%

A diminishing Musharaka / Ijara estimate: you and the institution co-own the home, and you buy back its share while paying rent on the part you don't yet own. The charge is profit and rent on a real ownership stake, not interest on a loan. Figures are an estimate — pricing, fees and structure vary by institution. Estimates only, not financial advice.

How it works

  1. 1

    Enter the property and your share

    Put in the purchase price and the percentage you can pay up front. What's left is the amount the institution finances.

  2. 2

    Add the profit rate and term

    Set the bank's annual profit (rental) rate and how many years the finance runs. This rate replaces interest in a Murabaha or Musharaka structure.

  3. 3

    Read the monthly cost

    See the monthly payment, the total profit paid to the institution and the total amount payable across the whole term.

Instant & 100% private — nothing is uploaded

Every calculation runs locally in your browser. The income, balances and goals you enter stay on your own device and are never sent to a server — nothing is stored, logged or shared.

Frequently asked questions

How is a sharia home finance different from a normal mortgage?
A conventional mortgage charges interest (riba) on a loan, which is not permitted. In a diminishing Musharaka the bank and you jointly own the home; you gradually buy its share and pay rent on the portion you haven't bought yet. The money you pay above the price is profit and rent on real property, not interest.
Why does the maths look the same as an interest calculation?
With a constant profit rate, buying back shares plus paying rent produces the same level monthly figure as an amortising loan. The number matches, but the contract and what you pay for are different — you are acquiring ownership and renting, not borrowing at interest.
Is this Murabaha calculator exact for a real offer?
No. It is a planning estimate. Institutions differ on profit rates, minimum deposits, fees, valuation rules and whether the rate is fixed or reviewed, so ask your provider for a formal illustration before you commit.
What profit rate and deposit should I use?
Use the annual profit rate the institution quotes, which sits in a similar range to conventional mortgage rates. Many Sharia providers ask for a larger deposit, often 15 to 20 percent or more, so try that as your share.

Important

For information and planning only — not financial, tax or legal advice. These figures are estimates; rates, fees and rules vary, so confirm anything that affects a real decision with a qualified professional or the official source.

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