Ijara lease calculator
In ijara the financier owns the asset and leases it to you, then it passes to you at the agreed final value. This computes the monthly rental and total cost.
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How to use it
- Enter asset price, advance payment, final purchase value (balloon), 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
Financed P = price − advance. Rental = (P − B ÷ (1 + r)^n) × r ÷ (1 − (1 + r)^−n), where B is the final value and r = rate ÷ 12. At 0%: (P − B) ÷ n.
Example
Inputs: Asset price = 150,000, Advance payment = 15,000, Final purchase value (balloon) = 0, Annual rental rate = 5 % a year, Term = 60 months. Result: Monthly rental: 2,547.62; Total rentals: 152,856.99; Total cost including advance and final value: 167,856.99.
Limits and caveats
- Assumes a fixed rate for the whole term and rent paid at the end of each month.
- Some ijara contracts reprice periodically; insurance and maintenance are not included.
Questions about this tool
What is the final value?
The amount you pay at the end to own the asset. Raising it lowers the rental but defers part of the payment.
Is ijara used for cars and homes?
Yes, for both, with terms and final values that differ by provider and asset.
Why does my bank quote differ?
Banks may add fees or insurance to the rental or use a variable rate; ask how they calculate it.