Islamic Mortgage Comparison
Compare halal home financing methods side-by-side. Calculate payments for Murabaha, Ijara, Musharaka, and conventional mortgages.
20.0% of property price
| Method | Monthly Payment | Total Cost | Total Profit / Interest | Effective Annual Rate |
|---|---|---|---|---|
Murabaha Cost-Plus Financing | $2,622.22 | $1,024,000.00 | $624,000.00 | 9.21% |
Ijara Lease-to-Own | $2,022.62 | $808,142.36 | $408,142.36 | 6.50% |
Musharaka MutanaqisaLowest Cost Diminishing Partnership | $1,757.96 | $712,866.67 | $312,866.67 | 5.20% |
ConventionalHaram Standard Mortgage (Haram) | $2,022.62 | $808,142.36 | $408,142.36 | 6.50% |
Cost-Plus Financing
Monthly Payment
$2,622.22
Total Cost
$1,024,000.00
Total Profit / Interest
$624,000.00
Effective Annual Rate
9.21%
Lease-to-Own
Monthly Payment
$2,022.62
Total Cost
$808,142.36
Total Profit / Interest
$408,142.36
Effective Annual Rate
6.50%
Diminishing Partnership
Monthly Payment
$1,757.96
Total Cost
$712,866.67
Total Profit / Interest
$312,866.67
Effective Annual Rate
5.20%
Standard Mortgage (Haram)
Monthly Payment
$2,022.62
Total Cost
$808,142.36
Total Profit / Interest
$408,142.36
Effective Annual Rate
6.50%
America's largest Islamic home financing provider. Uses Declining Balance Co-ownership (Diminishing Musharaka). Available in most US states.
University Islamic Financial Corporation offers Ijara and Murabaha home financing across the United States. Supervised by a Shariah advisory board.
Chicago-based bank offering Islamic home financing through Murabaha (installment sale) and Ijara (lease-to-own) programs nationwide.
Provider directory last reviewed 2026-06-27. Rates change frequently — always confirm with the provider before applying.
Conventional mortgages involve riba (interest), which is strictly prohibited in Islam. The Quran is clear on this matter:
"Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity." (Quran 2:275)
"O you who have believed, fear Allah and give up what remains of interest, if you should be believers." (Quran 2:278)
Islamic financing alternatives achieve the same goal -- homeownership -- without the element of interest, replacing it with trade-based or partnership-based structures that are permissible.
Good to know
This calculator provides educational estimates. Financing terms, rates, and total costs vary by provider, property, and personal circumstances, so we recommend confirming current details with your chosen provider and seeking qualified Islamic-finance guidance where helpful. The conventional mortgage calculation is included for comparison, not as a recommendation.