Tawarruq Calculator
Calculate your Islamic Tawarruq financing payments with profit margin, monthly installments, and payment schedule.
Islamic Tawarruq Financing Calculator
Calculate your Sharia-compliant commodity financing with transparent profit margins
Understanding Tawarruq Financing
What is Tawarruq?
Tawarruq (also known as commodity murabaha) is an Islamic financing arrangement where you obtain cash through commodity trading. The bank purchases a commodity and sells it to you at a markup. You then sell the commodity to a third party to receive cash, repaying the bank in installments.
How Tawarruq Works
- You request financing from the bank
- Bank purchases commodity (e.g., metals) from supplier
- Bank sells commodity to you at cost + profit margin
- You sell commodity to third party for cash
- You repay bank in monthly installments
Key Terms Explained
- Cost Price: Amount bank pays for commodity
- Selling Price: Cost + bank's profit margin
- Profit Rate: Annual percentage markup (not interest)
- Processing Fee: Administrative charges
Benefits of Tawarruq
- Sharia-compliant cash financing
- Transparent profit structure
- Fixed monthly payments
- No compound interest
- Widely accepted by Islamic scholars