IJARA CALCULATOR (SIMULATION ISLAMIC LEASING)

You enter the asset price, any upfront payment or security deposit, the profit/rental rate (per year), the term and payment frequency, plus options like fees and Takaful.

ONLINE CALCULATOR FOR IJARA – HALAL LEASING SIMULATOR

For Ijārah thumma al-bayʿ (“lease, then sale”), the calculator models two contracts: (1) a lease with rents computed over the term, and (2) a separate sale at the end for a pre-agreed price (the “residual”). It shows monthly rent, total rent, the end purchase price, and the all-in outlay if the lessee chooses to buy. Assumptions can be set to fixed rent or to a profit rate applied to the net book value the lessor is recovering, while ensuring the sale only occurs after the lease ends.

For Ijārah wa-iqtināʿ (also called al-ijarah al-muntahiyah bi-tamlīk, “lease ending with ownership”), the calculator combines the lease with a promised transfer of title at expiry—either by a token sale or a gift deed executed separately.

For Ijārah mawsūfah fī al-dhimmah (“forward ijārah of a described asset”), the calculator handles deferred delivery: rent starts only after delivery/availability of the specified usufruct. You enter milestone dates (build/manufacture period), expected delivery, and any earnest money or refundable security taken before handover.

How does Ijara apply to a car or property ?

Car (Ijara): The bank buys the car and leases it to the customer for fixed rent. The customer uses the car, pays operating costs (fuel, service), while the bank handles ownership-related risks. At the end, ownership may transfer through a separate sale (Ijarah Muntahia Bittamleek).

Property (Ijara): The bank buys the house/property and leases it to the client. The tenant pays rent, covers utilities and minor upkeep, while the bank handles major ownership duties. Ownership can pass to the client at the end if agreed in a separate acquisition clause.

In both cases, ownership and risk stay with the bank during the lease, unlike conventional loans where the bank just charges interest.

What are the types of Ijara and what is their role ?

Types of Ijāra

There are several forms, depending on whether it is about services, assets, or financing:

1. 1. Ijāra of Services (Hiring people)
      • • A contract where someone hires the services of a person (like an employee, consultant, or worker) for a wage.
      • • Example: Employing a teacher, doctor, or driver.

1. 1. Ijāra of Usufruct (Leasing assets)
      • • A contract to lease the usufruct (the right to use) of an asset, while ownership remains with the lessor.
      • • Example: Renting a house, car, or equipment.

1. 1. Ijāra Muntahiyah bi-t-Tamlīk (Lease-to-own / Ijārah wa Iqtināʾ)
      • • A financing contract where the asset is leased to the client, with an option or promise to transfer ownership at the end (by sale or gift).
      • • Common in Islamic banking for financing cars, homes, machinery.

1. 1. Operating Ijāra (Pure lease)
      • • A simple rental contract with no transfer of ownership at the end.
      • • Example: Renting office equipment for a fixed term.

1. 1. Financial Ijāra (Used in Islamic finance)
      • • Used as an alternative to interest-based loans. The bank buys an asset (like real estate or equipment) and leases it to the client for an agreed rent.
      • • Ownership stays with the bank, but risks (like insurance/major maintenance) may be borne by the bank, depending on the terms.

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Which Islamic institutions propose Ijara for cars and properties worldwide?

• • There’s a region-wise snapshot of well-known Islamic institutions that publicly offer Ijārah-based financing for cars and/or properties (lease / lease-to-own, including forms like Ijārah Muntahiyah bi-t-Tamlīk and AITAB). Availability and eligibility vary by country.

Middle East (GCC)

• • UAE: Dubai Islamic Bank – Auto Ijārah (cars) and business ijārah; Emirates Islamic – home finance; ADIB (Abu Dhabi Islamic Bank) – car finance and home finance that uses ijārah variants. ADIB

• • Saudi Arabia: Al Rajhi Bank – Sharia-compliant home finance programs. مصرف الراجحي1

• • Qatar: Qatar Islamic Bank (QIB) – home finance. QIB

• • Kuwait: Kuwait Finance House (KFH) – real-estate Ijārah (lease-to-own). KFH

South Asia

• • Pakistan: Meezan Bank – Car Ijārah (interest-free car leasing); calculators and product pages. Meezan Bank

• • Bangladesh: City Bank (Islamic) – Islamic auto finance (Sharia-compliant structure for vehicles). ijaracdc.com

Southeast Asia (common AITAB = Ijārah + sale)

• • Malaysia: Maybank Islamic – AITAB vehicle financing; Bank Islam Malaysia – AITAB / Vehicle Financing-i; Public Islamic Bank – AITAB Hire Purchase-i. Maybank+4

Europe (UK)

• • Al Rayan Bank (UK): Home Purchase Plans structured on Islamic contracts (widely include ijārah elements). AlRayan Bank

• • Kuwait Finance House (UK): Islamic home purchase plans for UK properties. uk.kfh.com

North America

• • IjaraCDC (USA/Canada): Ijārah-structured home financing solutions across residential & commercial. ijaracdc.com

Africa

• • Nigeria: Jaiz Bank – Home financing based on Ijārah Muntahiyah bi-t-Tamlīk / Ijārah wa Iqtināʾ (lease-to-own).

• • Egypt: Faisal Islamic Bank of Egypt – products branded Ijara/Ejara among retail offerings. faisalbank.com.eg