How this calculator works
This calculator estimates your monthly Islamic mortgage payment using industry-standard Islamic finance formulas. The calculation is based on:
- Property value: The total price of the home
- Deposit: Your down payment (10-20% typical)
- Loan term: How many years to repay (15, 20, 25, or 30)
- Profit rate: Current Islamic finance benchmark (~6.49% p.a.)
What's included in the payment?
Your monthly payment includes:
- Principal: The actual cost of the property you're buying
- Profit share: The lender's agreed profit (similar to interest, but Shariah-compliant)
- Service fee: Administrative costs (typically 0.25-0.5% p.a.)
Note: This does NOT include property insurance, council rates, or other property costs. Your mortgage specialist will include those in your full quote.
Diminishing Musharaka vs Ijarah
Musharaka: Partnership where the lender owns a percentage of the property initially. Your ownership grows each month as you pay. Typically results in slightly lower total costs.
Ijarah: Lease-to-own structure where you lease the property, then purchase it at a pre-agreed price. Similar payment structure, different legal arrangement.
Is this estimate accurate?
This calculator provides a close estimate, but your final payment may vary slightly based on:
- Exact lender terms and fees
- Current Islamic finance profit rates (updated regularly)
- Your specific loan structure and terms
- Additional costs (insurance, rates, body corporate)
The best way to get an exact quote is to apply → or book an appointment with our specialists.
Need more details?
Compare different scenarios
Try adjusting the values above to see how property price, deposit, and term affect your payment.
Example scenarios:
- $500K property, $100K deposit, 25 years: ~$2,700/month
- $750K property, $150K deposit, 25 years: ~$4,047/month
- $1M property, $200K deposit, 30 years: ~$4,890/month