Islamic Mortgage Calculator

An Islamic Mortgage Calculator is a powerful tool designed to assist individuals in estimating their monthly mortgage payments based on Islamic financing principles. This calculator adheres to Sharia-compliant financial guidelines, ensuring a transparent and ethical approach to home financing.

Formula: The formula used in this calculator follows the principles of Islamic finance, incorporating the concept of Murabaha. The calculation involves determining the monthly payment using the formula for diminishing musharakah, providing users with a Sharia-compliant way to plan their home financing.

How to Use:

  1. Enter the principal amount – the initial loan amount.
  2. Input the annual interest rate as a percentage.
  3. Specify the loan term in years.
  4. Click the “Calculate” button to obtain the monthly payment amount.

Example: Suppose you have a principal amount of $200,000, an annual interest rate of 4%, and a loan term of 15 years. After entering these values and clicking “Calculate,” the calculator will display the monthly payment based on Islamic financing principles.


  1. Is this calculator Sharia-compliant? Yes, this calculator follows Islamic finance principles, ensuring compliance with Sharia guidelines.
  2. What is the significance of Murabaha in the formula? Murabaha is a key element in Islamic finance, and its incorporation ensures transparency and fairness in the calculation process.
  3. Can I use this calculator for commercial properties? This calculator is primarily designed for residential properties adhering to Islamic financing principles.
  4. Is the interest rate fixed throughout the loan term? Yes, the interest rate used is fixed for the entire duration of the loan.
  5. What is the benefit of using an Islamic Mortgage Calculator? It provides a clear understanding of your monthly payments while adhering to Islamic financial principles.

Conclusion: The Islamic Mortgage Calculator offers a valuable resource for individuals seeking to plan their home financing in accordance with Islamic principles. By providing accurate and transparent calculations, this tool empowers users to make informed decisions on their homeownership journey.

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