Skip to main content
Murabaha financeIslamic Home Finance
Installment estimate

Finance your property,
Sharia-compliant.

Estimate your monthly Murabaha payment, where the bank buys the property and sells it to you at cost plus a fixed agreed-upon profit margin.

INPUTS · Inputs
Property price⃁ 1,500,000
⃁ 200,000⃁ 20,000,000
Down payment20% — ⃁ 300,000
0% — ⃁ 050% — ⃁ 750,000
Annual flat margin on original principal (not APR)4.5% of original principal per year
0% of original principal per year8% of original principal per year
Financing term25 years
5 years30 years
RESULTS · Results
FINANCEDFinanced amount
⃁ 1,200,000
TOTAL COSTTotal installments excluding down payment
⃁ 2,550,000
BANK PROFITTotal bank profit
⃁ 1,350,000
Monthly installment

⃁ 8,500

Over 300 installments (25 years)

⚖️ Calculation method: Flat-profit model: financed principal × annual flat margin × years, with principal and profit split into installments. This input is not APR or a reducing-balance rate; do not substitute APR. Fees, insurance and taxes are excluded. Compare using the lender repayment schedule.

Financing scenarios

How does the rate affect installments?

Educational hypothetical rates, not rates attributed to banks. To estimate your budget, open Pre-qualify calculator.

ScenarioNominal rateMonthlyTermDown + installments
Scenario 1
Lowest scenario installment
3.00%⃁ 7,48720 years⃁ 1,946,896
Scenario 2
5.00%⃁ 8,90920 years⃁ 2,288,257
Scenario 3
7.00%⃁ 10,46720 years⃁ 2,661,969

Illustrative reducing-balance nominal annual rates with 10% down, not bank offers or fee-inclusive APR. Totals include down payment and installments only; fees, insurance and taxes are excluded. This differs from the flat-profit model above. Compare actual lender offers using APR and total cost.

METHODOLOGY · How Murabaha works

4 simple steps

  1. 01REQUEST

    You apply for financing

    You identify the target property and the bank. The bank reviews your financial profile and sets the financing cap.

  2. 02PURCHASE

    The bank buys

    The bank purchases the property from the seller in its own name — this is what makes the transaction Sharia-compliant (no interest-bearing loan).

  3. 03SELL

    The bank sells to you

    The bank sells you the property at cost plus a fixed profit margin agreed up front.

  4. 04REPAY

    You pay in installments

    You settle the total in equal monthly installments over the agreed term.

COMPARISON · The difference

Murabaha vs conventional interest loan

SHARIA · Murabaha ✓
  • · The bank actually owns the property then sells it
  • · The profit is fixed and never changes
  • · No compounded late-payment interest
  • · Approved by the bank Sharia boards
CONVENTIONAL · Interest-based ✗
  • · Direct cash loan
  • · Variable, compounded interest
  • · Riba-based late fees
  • · Prohibited by the majority of scholars
BANKS · Saudi banks

Where to apply

مصرف الراجحي

Al Rajhi Bank

بنك الإنماء

Alinma Bank

بنك البلاد

Bank Albilad

بنك الجزيرة

Bank AlJazira

مصرف الإنماء

Alinma Tadawul

البنك الأهلي السعودي

SNB

* All Saudi banks offer Sharia-compliant property financing products. Pricing and terms vary — compare before choosing.

DISCLAIMER · NoteThis simplified flat-profit model does not validate a bank offer or provide Sharia certification. Review the lender contract, repayment schedule, APR and fees.