CalcaTools

Murabaha Calculator

A Murabaha Calculator estimates monthly instalments, total profit and total sale price under the cost-plus Islamic financing contract. Murabaha is the most widely used Shariah-compliant alternative to conventional loans.

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

$

Bank purchase cost of the car / equipment / home.

%

Fixed cost-plus markup — locked at contract signing.

$
Results

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

Quick reference

$40k asset, $5k down, 6%, 60 moResult
Amount financed$35,000
Total profit$10,500
Locked sale price$45,500
Monthly instalment$758

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

FeatureMurabaha behaviour
Sale priceFixed at contract; never increases
Late paymentNo interest accrual (charity penalties only)
Early settlementRebate possible but discretionary

Formula & methodology

Formula: Total profit = financed × rate × years (flat); instalment = (financed + profit) ÷ months

  1. Enter the asset cost, your down payment, the bank’s profit rate and the term.
  2. Murabaha profit is computed flat on the financed amount over the term and added to form the fixed sale price.
  3. The sale price divides into equal instalments — the figure that never changes after signing.

Worked example: $40,000 car with $5,000 down at 6% over 60 months → $758/month; profit $10,500, total sale price locked at $45,500.

Authoritative source: AAOIFI Shariah Standard No. 8

Frequently asked questions

What is Murabaha?
Cost-plus sale finance: the bank buys the asset, discloses its cost and profit margin, and sells it to you at the fixed marked-up price payable in instalments. It’s the most common Islamic finance contract for cars and equipment.
How is Murabaha different from an interest loan?
You owe a fixed sale price for a real asset — not a balance that compounds. The price can never grow after signing, late payments don’t accrue interest (penalties go to charity), and the bank must genuinely own the asset before selling.
Why is the flat-rate profit higher than it looks?
Flat 6% on the full financed amount over 5 years ≈ 10.9% APR-equivalent on a reducing balance. When comparing against conventional quotes, convert — or compare total cost, which the calculator gives directly.
Can I pay off a Murabaha early?
You owe the contracted sale price; many banks voluntarily grant an early-settlement rebate (ibra) but classically aren’t obliged to. Ask for the rebate policy in writing before signing.
Is Murabaha halal?
Yes when executed properly: real ownership transfer to the bank first, full cost disclosure, fixed price, no rollover charges. AAOIFI standards govern it; check your provider’s Sharia board certification.

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.