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Ijara Calculator

An Ijara Calculator estimates monthly lease payments under the Islamic Ijara contract. Ijara wa Iqtina (lease-to-own) is used for halal home and vehicle financing globally.

Last updated: June 2026 · Free · No sign-up required

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Results

Enter values above and click Calculate to see your result instantly.

Quick reference

$200k asset, $40k down, 20 yr @5.5%Result
Financed via Ijara$160,000
Monthly lease payment$1,101
Total rent over term$104,149
Total cost$264,149

mosque Calculated to Shariah-compliant formulas

Every Islamic calculator on CalcaTools uses formulas from recognised Shariah authorities — the Hilal Committee's Hijri conversion tables, the MWL/ISNA/Umm al-Qura prayer-time methods, the four-school consensus for Zakat Nisab, and the Faraid distribution rules from classical fiqh. The exact authority is cited on every tool page.

menu_book Sunni & Shia rules side by side

For tools where the calculation differs between schools (Faraid inheritance, certain Zakat triggers, prayer-time conventions), we surface the choice as a selector and document the difference in the methodology block. Pick the school that matches your tradition — the answer adjusts.

savings Zakat with the live Nisab

Zakat tools fetch the current spot gold/silver price (or let you enter your local rate) so the Nisab threshold reflects today's value, not a stale figure from last year. The 2.5% rate is the standard hawl-based calculation; agricultural Zakat (1/10 or 1/20) is available on the dedicated Ushr calculator.

verified For guidance, not a fatwa

These calculators give you the number — they do not give a fatwa. For complex personal situations (inheritance with revoked rights, mixed-asset Zakat, late prayer makeup rules), please confirm with a qualified scholar in your tradition. We're here to help with the arithmetic, not to replace your local imam.

Interpretation guide

Ijara typeEnd of term
Ijara wa Iqtina (lease-to-own)Ownership transfers to you
Operating IjaraAsset returns to the lessor
Ijara mawsufaForward lease on assets under construction

Formula & methodology

Formula: Monthly rent = annuity(financed amount, rate/12, months); ownership transfers at term end (wa Iqtina)

  1. Enter the asset price, your down payment, lease term and rental rate.
  2. The financed portion (price − down) is annuitised into a level monthly rent.
  3. Total rent and total cost are reported; choose the Ijara type to see the ownership outcome.

Worked example: $200,000 asset with $40,000 down over 20 years at 5.5% → $1,101/month, $104,149 of rent, ownership transferring at term end under Ijara wa Iqtina.

Authoritative source: AAOIFI Standard No. 9 — Ijara

Frequently asked questions

What is an Ijara?
An Islamic lease: the financier owns the asset and rents it to you for an agreed term. In Ijara wa Iqtina (lease-to-own), ownership transfers at the end — the structure used for cars and homes.
How does Ijara differ from a conventional loan?
You pay rent on an asset the bank genuinely owns — not interest on borrowed money. The lessor bears ownership risks (e.g. structural insurance), and rent must relate to real usufruct, which is what scholars certify.
What rate do I enter?
The provider’s quoted rental rate — usually benchmarked for competitiveness. The calculator applies it to the financed share exactly as quoted schedules do.
Ijara vs Murabaha vs Musharakah — which is cheaper?
At equal rates the cash flows are similar; the differences are contractual. Murabaha fixes the full sale price upfront, Ijara keeps the bank as owner-lessor, diminishing Musharakah blends rent with progressive buyout. Compare all three with our calculators.
Can I end an Ijara early?
Most lease-to-own contracts let you purchase the outstanding units early, often with a rent rebate for unexpired periods. Terms vary — request the early-settlement schedule before signing.

Explore the full Islamic toolkit

Every CalcaTools Islamic calculator — zakat and charity, prayer times, the Hijri calendar, halal finance, and family tools — cross-checked against the Umm al-Qura calendar and classical fiqh references.