Islamic Mortgage Calculator (Halal Home Finance)
Last updated: June 2026 · Free · No sign-up required
Enter values above and click Calculate to see your result instantly.
Halal home finance replaces the interest-bearing loan with a traded or co-owned asset: in a Diminishing Musharakah the provider buys most of your home with you, charges rent on its shrinking share, and sells you that share month by month; Ijara wa Iqtina leases the home to you with ownership at term; Murabaha resells it to you at a fixed, up-front markup. This calculator prices all three.
Enter the home price, down payment, term and the provider’s profit rate to get the monthly payment, total cost, provider profit — and, for musharakah, how the first payment splits between rent and your own equity. Typical providers (Guidance Residential, Al Rayan, Gatehouse) ask 15–25% down; use their published profit rates for a realistic quote.
Quick reference
| $400k home, 20% down, 5.5% | Monthly | Total payments | Provider profit |
|---|---|---|---|
| Diminishing Musharakah, 25 yr | $1,965.08 | $589,524 | $269,524 |
| Diminishing Musharakah, 15 yr | $2,614.85 | $470,673 | $150,673 |
| Murabaha, 25 yr | $2,533.33 | $760,000 | $440,000 |
| Conventional 5.5% APR, 25 yr | $1,965.08 | $589,524 | $269,524 (as interest) |
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
| Model | How it works |
|---|---|
| Diminishing Musharakah | Bank co-owns the home; each payment = rent on its share + buying more of it. Most common in the US/UK |
| Ijara wa Iqtina | Lease-to-own: you rent the whole property and acquire it at term — same declining-balance math |
| Murabaha | Bank buys the home, resells to you at a fixed markup — total cost is locked on day one |
| Rent vs equity split | Early payments are mostly rent; the equity share grows every month |
Formula & methodology
Formula: Musharakah/Ijara: M = P·r ÷ (1 − (1+r)⁻ⁿ); first rent = balance × rate ÷ 12; Murabaha: total = P × (1 + rate × years)
- Enter the home price, down payment (most providers want 15–25%), term and the provider's profit rate.
- Pick the model: Diminishing Musharakah and Ijara use declining-balance math; Murabaha uses a flat cost-plus markup.
- Read the monthly payment, total cost, provider profit, and — for musharakah — the first payment's rent/equity split.
Worked example: $400,000 home with $80,000 down at 5.5% over 25 years (Diminishing Musharakah): $1,965.08/month. The first payment splits into $1,466.67 rent on the bank's $320,000 share and $498.41 equity purchase; total cost of the home is $669,524 including the down payment.
Frequently asked questions
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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.