Calculator · Diminishing Musharakah
Islamic home finance calculator
Estimate the monthly payment on Islamic home finance (Diminishing Musharakah) from the property price, your share, the period and your bank’s profit rate.
Diminishing Musharakah estimate
Monthly rental for 180 months
- Amount financed
- Rs 15,000,000
- Total profit to bank
- Rs 22,788,852
- Total you pay
- Rs 42,788,852
Total you pay = down payment + all monthly rentals. Not included: takaful, valuation and legal fees, processing charges. Banks reprice the rate with KIBOR, usually once a year, so later rentals can change.
Questions, answered
Home finance questions, answered.
How is the monthly payment calculated?
The financed amount (property price minus your share) is spread over the period at the profit rate you enter as level monthly payments, combining rent for the bank’s share and payments that buy that share from the bank. Takaful, valuation and legal fees are not included.
What is Diminishing Musharakah?
It is the partnership structure Islamic banks use for home finance. You and the bank jointly own the property; you pay rent on the bank’s share and gradually buy its units until you own the home outright. Because the bank’s share shrinks, the rent portion falls over time.
How much down payment do I need for home finance?
Islamic banks typically ask you to contribute a share of the property price, often around 15–30%, depending on the bank, the property and your income. Enter your expected share to see how it changes the monthly payment.
What profit rate should I enter?
Use your bank’s quoted rate. Home finance is usually priced at KIBOR plus a margin and repriced periodically. Some government-supported schemes offer lower rates; check eligibility with your bank.
Is this the bank’s official calculator?
No. Islamic Funds is independent and not affiliated with Meezan Bank, Dubai Islamic Bank, HBL or any other bank. Get an exact quote from your bank before deciding.