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Murabaha Home Finance Calculator

Calculate monthly payments and total cost for Islamic Murabaha home financing — the Shariah-compliant alternative to interest-based mortgages. No riba.

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Murabaha Finance Calculator

How Murabaha works: The bank buys the property and sells it to you at a disclosed markup (profit), paid in instalments. No interest is charged — the profit is agreed upfront and fixed.
Typically 20% of property value
The bank's agreed profit margin — not interest

Murabaha vs. Conventional Mortgage

A conventional mortgage charges interest (riba), which is prohibited in Islam. Murabaha is a cost-plus financing structure where the bank purchases the asset and resells it at a disclosed profit. The key difference: the profit amount is fixed at the start, known to both parties, and does not fluctuate.

Other Shariah-compliant home finance structures include Ijara (lease-to-own) and Diminishing Musharakah (shared ownership that transfers gradually to the buyer).

Islamic Home Finance Providers

Several financial institutions offer Shariah-compliant home finance including Guidance Residential (US), Devon Bank (US), HSBC Amanah (UK), Al Rayan Bank (UK), and Islamic Bank of Britain. Always verify Shariah compliance certification with the provider.

Frequently Asked Questions

Is Murabaha truly halal?
Yes — Murabaha is a widely accepted Shariah-compliant structure endorsed by major Islamic finance bodies including AAOIFI and most national Shariah boards. The key is that the profit is fixed, disclosed, and agreed before the transaction — unlike interest which is charged on the outstanding balance over time.
Why does the monthly payment look similar to a mortgage?
The numbers may look similar because both spread a cost over time. The fundamental legal and religious distinction is in the contract structure — one charges riba (prohibited), one charges a disclosed profit (permitted). Consult a qualified Islamic finance scholar for your specific situation.