Islamic Finance Calculator
Calculate payments for Islamic finance products — Murabaha (cost-plus sale), Ijara (leasing) and Musharaka (partnership) — which avoid interest (riba).
| Mode | Description |
|---|---|
| Murabaha (cost-plus) | Bank buys asset and sells at disclosed profit margin — fixed cost, no interest |
| Ijara (leasing) | Bank leases asset to customer — rental payments, ownership may transfer at end |
| Musharaka (partnership) | Joint ownership — customer buys out bank's share gradually, profits/losses shared |
| Sukuk | Islamic bonds — asset-backed securities that pay profit instead of interest |
Please enter valid values.
How to use
- Select the Islamic finance mode: Murabaha, Ijara or Musharaka.
- Enter the asset cost, profit rate percentage and number of months.
- Click Calculate to see the total price, monthly payment and profit amount.
Frequently asked questions
What is Murabaha?
Murabaha is a cost-plus sale where the bank buys the asset and sells it to the customer at a disclosed profit margin, paid in installments. The profit is fixed upfront — it is not interest because the bank takes ownership risk.
What is Ijara?
Ijara is an Islamic leasing contract where the bank buys the asset and leases it to the customer for a fixed period. At the end, ownership may transfer to the customer. It is similar to a conventional lease but structured to avoid riba.
What is Musharaka?
Musharaka is a partnership where the bank and customer jointly own an asset. The customer gradually buys out the bank's share. Profits and losses are shared proportionally — it is the most equity-like Islamic finance structure.
Is Islamic finance more expensive?
Not necessarily. The total cost depends on the profit rate, which is often benchmarked to conventional rates. The key difference is the legal structure: Islamic finance avoids interest and requires the bank to take real ownership risk.