Murabaha Calculator
Cost-plus Islamic financing with a fixed, non-compounding profit margin.
🔒 Runs entirely in your browser — nothing here is ever uploaded
About the Murabaha Calculator
Computes the total cost and monthly payment for a Murabaha (cost-plus sale) Islamic financing arrangement.
- Enter the asset cost.
- Enter the agreed profit margin.
- Enter the repayment term.
- Read the total payable and monthly payment.
A $20,000 asset with a $3,000 agreed profit over 36 months: $23,000 total payable, $638.89/month.
| Structure | Month 1 payment | Mid-term payment | Final month payment | Shape |
|---|---|---|---|---|
| Murabaha (fixed profit) | $638.89 | $638.89 | $638.89 | Flat — total profit is fixed at signing and split evenly across every installment |
| Diminishing Musharakah (declining co-ownership) | $2,000.00 | $1,504.17 (month 120) | $1,004.17 | Declining — rent shrinks each month as the bank's ownership share is bought out |
| Ijara (lease) | $133.33 | $133.33 | $133.33 | Flat — rent on the full asset value, with no ownership buildup |
The profit margin is fixed at contract signing and never compounds, unlike conventional interest — the total payable is the same regardless of how long the repayment schedule runs.
- • Because the profit is fixed, paying off a Murabaha early doesn't reduce the total profit owed the way paying off a conventional loan early reduces future interest — check your specific contract's terms.
- AAOIFI Shariah Standard No. 8 (Murabaha) — accessed 2026-09-06
Provided for general guidance based on the named calculation method or standard cited on this page — not a religious ruling (fatwa). Practices and interpretations vary by school of thought, region, and local scholarly authority; consult a qualified imam or scholar for religious obligations, especially inheritance and financial matters.