Islamic Finance Calculator

Conventional loans charge interest (riba), which is forbidden in Islam. Islamic finance uses profit-sharing, leasing, and co-ownership instead. The financial outcome may look similar, but the contractual structure is Sharia-compliant and avoids riba entirely.

Monthly payment = (Principal + Total Profit) ÷ Term. Total Profit = Principal × Annual Profit Rate × (Term ÷ 12). Example: $50,000 at 5% for 60 months → Total Profit = $12,500 → Monthly = $1,041.67.

Halal financing is Sharia-compliant financing that avoids riba (interest), gharar (excessive uncertainty), and investment in prohibited industries (alcohol, gambling, pork, weapons). Profit is earned through legitimate trade or leasing transactions.

No. Islamic finance is available to everyone. Many non-Muslims choose it for its ethical, transparent structure and fixed payment certainty. All major Islamic financial institutions welcome customers of all backgrounds.

Murabaha profit rates typically range from 3% to 8% per year, depending on the country, lender, and asset type. US/UK rates are often 4–7%. Gulf country rates can be 3–5%. The rate is fixed at contract signing and never changes.

Bank and customer co-own the property. Each month the customer pays: (1) rent for the bank's remaining share, and (2) a payment to purchase a portion of the bank's share. As ownership shifts, the rental portion decreases. At term end the customer owns 100%.

Ijara is an Islamic lease where the bank owns and maintains ownership risk of the asset throughout the term. Unlike a conventional lease, major maintenance is the bank's responsibility. An Ijara Muntahia Bittamleek includes a purchase option at term end.

Yes. Use the Murabaha tab: enter the vehicle price as Financing Amount, set the profit rate offered by your Islamic bank, and enter the number of monthly installments. The calculator shows your exact monthly payment and total cost.

Mathematically they produce similar figures, but legally they differ. A profit rate is earned through a trade transaction — the bank buys and sells the asset. An interest rate is a charge for lending money. Under Sharia, earning from a sale is permissible; charging interest on a loan is not.

UK: Al Rayan Bank, Gatehouse Bank, HSBC Amanah. Germany: KT Bank. USA: Guidance Residential, UIF Corporation, Devon Bank. Canada: Manzil, Eqraz. Online globally: Wahed Invest (investments). Use the comparison links below to explore current offers.