Calculator · car Ijarah
Islamic car finance calculator
Work out the monthly rental on an Islamic car lease (Ijarah) from the car price, your down payment, the period and your bank’s profit rate.
Car Ijarah estimate
Monthly rental for 60 months
- Amount financed
- Rs 3,500,000
- Total profit to bank
- Rs 1,606,792
- Total you pay
- Rs 6,606,792
Total you pay = down payment + all monthly rentals. Not included: takaful (insurance), security deposit, registration. Banks reprice the rate with KIBOR, usually once a year, so later rentals can change.
Questions, answered
Car Ijarah questions, answered.
How is the monthly rental calculated?
The calculator spreads the financed amount (car price minus your down payment) over the period at the profit rate you enter, as level monthly payments. This is how banks quote Ijarah rentals before takaful, deposits and fees are added.
What is car Ijarah?
Ijarah is an Islamic lease. The bank buys the car and rents it to you for an agreed period; you pay a monthly rental, and at the end ownership is transferred to you, usually against the security deposit or a token price. The bank owns the car during the lease, and takaful (Islamic insurance) covers it.
What profit rate should I enter?
Use the rate your bank quotes. Islamic car financing is usually priced at KIBOR plus a margin and is repriced, often once a year, so rentals can change. The default figure on this page is only an example.
Is the security deposit the same as a down payment?
Islamic banks usually call the upfront amount a security deposit, held against the car and adjusted when ownership passes to you. It works like a down payment for this calculation: the larger it is, the less is financed and the lower your rental.
Is this the bank’s official calculator?
No. Islamic Funds is independent and not affiliated with Meezan Bank, HBL, Bank Alfalah or any other bank. Use this to compare options, then get an exact quote from your bank, including takaful and charges.