Diminishing Musharakah Calculator
Enter the house price, your share and the bank share — every month the bank share keeps going down, and rent is charged only on the remaining bank share. This is the basic structure of diminishing musharakah.
| Year | Bank share at year start | Rent that year | Units bought that year |
|---|
How to use
- Enter the property price and your share (percent).
- Enter the tenure and the annual rent rate on the bank share — this rate changes with the bank and the plan.
- See the first and last monthly payment, total rent and the year-by-year schedule.
Note: This is a worksheet model: the real Islamic bank rent rate, takaful, processing fees and early purchase rules may be different. Rates change — verify with the official source before relying on this. Before signing any contract, be sure to check the bank schedule and the mufti-approved structure.
Tips
- The rent rate changes with the bank and the plan — confirm the real rate before deciding.
- Takaful, processing fees and early-buyout rules are not included here.
- This is a worksheet estimate, not a bank offer.
Frequently Asked Questions (FAQ)
What is diminishing musharakah?
An Islamic home financing structure where you and the bank share ownership, the bank's share shrinks as you buy more units each month, and rent is charged only on the remaining bank share.
What inputs does the calculator need?
Property price, your share percent, tenure in years, and the annual rent rate on the bank's share.
What results do I get?
The first and last monthly payments, the total rent over the plan, and a year-by-year payment schedule.
Why is the last payment lower than the first?
As you buy more units, the bank's share shrinks, so the rent part of your monthly payment keeps getting smaller.
Is this the same as a bank's offer?
No. This is a planning estimate, not a bank offer; actual rent rates and plans vary from bank to bank.