Murabaha Calculator | Islamic Cost-Plus Financing
Calculate Murabaha financing with transparent cost and profit breakdown. Shariah-compliant cost-plus sale financing for home, car, and business assets.
What is Murabaha?
Murabaha is an Islamic financing arrangement where the bank purchases an asset and sells it to you at a disclosed cost plus a fixed profit margin. Unlike conventional loans, there is no interest - the profit is agreed upfront and remains fixed throughout the tenure.
Select Asset Type
Financing Details
$
Original cost of the asset
$
Your initial payment
%
Bank's disclosed profit margin
Years
Payment period
Transparent Cost Breakdown (No Hidden Charges)
Asset Cost
$200.000
+
Bank Profit
$75.000
=
Selling Price
$275.000
Total Amount to Pay (After Down Payment)
$225.000
Your Fixed Monthly Installment
$1.250,00
for 180 months
Financed Amount
$200.000
Total Profit
$75.000
Profit Percentage
37,5%
Payment Composition
Total
$275.000
Down Payment: $50.000
Financed Cost: $150.000
Bank Profit: $75.000
Murabaha vs Conventional Comparison
Murabaha (This Plan)
Monthly Payment
$1.250,00
Total Cost
$275.000
Profit/Interest
$75.000
Rate Type
Fixed
Conventional Loan
Monthly Payment
$1.581,59
Total Cost
$334.686
Total Interest
$84.686
Rate Type
Compounding
Payment Schedule
| Period | Payment | Principal | Profit | Balance |
|---|
About Murabaha Financing
Murabaha is one of the most widely used Islamic financing structures. It involves the sale of goods at a price that includes a profit margin agreed upon by both parties. The key principle is transparency - the cost and profit margin are disclosed upfront.
Key Features of Murabaha
- Cost Transparency: The bank discloses the original cost of the asset
- Fixed Profit: The profit margin is agreed upfront and does not change
- No Compounding: Unlike interest, the profit doesn't compound over time
- Asset-Based: The financing must be tied to a real, tangible asset
- Ownership Transfer: The bank takes ownership before selling to the customer
How Murabaha Works
- Customer identifies the asset they want to purchase
- Bank purchases the asset from the seller
- Bank sells the asset to the customer at cost plus agreed profit
- Customer pays in installments over the agreed tenure
Murabaha vs Conventional Loans
- Structure: Murabaha is a sale transaction, not a loan
- Risk: Bank bears risk while owning the asset (before sale)
- Certainty: Total cost is known from day one
- Late Fees: No compound penalties in Islamic structure