Diminishing musharakah calculator
You buy the property jointly with the financier and each month pay rent on its share plus buy part of that share until you own it all.
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How to use it
- Enter property price, your initial contribution, annual rental rate and term.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Financier share = price − your contribution. Fixed payment = financier share × r ÷ (1 − (1 + r)^−n), r = rental rate ÷ 12. Monthly rent = remaining financier share × r; the rest of the payment buys part of that share.
Example
Inputs: Property price = 500,000, Your initial contribution = 100,000, Annual rental rate = 5 % a year, Term = 20 years. Result: Monthly payment: 2,639.82; Total rent: 233,557.51; Total of payments: 633,557.51.
Limits and caveats
- Assumes a fixed rental rate, while many contracts reprice periodically.
- Excludes insurance, maintenance and fees; your contract may split rent and share differently.
Questions about this tool
Musharakah vs ijara?
In musharakah you own part of the property from day one and your share grows monthly; in ijara the financier owns the asset until the end.
Why does the rent fall over time?
Rent is charged only on the financier share, which gets smaller every month.
Is the payment fixed for the whole term?
In this calculator yes. With a variable rate the payment changes at each repricing.