Ijarah Calculator

Sharia-compliant lease-to-own — the bank (lessor) owns the asset and leases it to you for a fixed monthly rent. At the end of the lease, ownership transfers for a token purchase fee. Common Sharia auto-loan / equipment-finance alternative.

Inputs

Asset cost (market value)

Agreed monthly rent

Lease tenure

yrs

Ownership transfer fee

Token symbolic fee paid at end of lease for ownership transfer.

Result

Total cost of ownership

$36,001

$36,000 rent + $1 transfer

Premium over outright purchase

$6,001

20.00% over asset cost

Cashflow

Asset cost (market)$30,000

Monthly rent$600

Total rent over 5 years$36,000

Transfer fee at end$1

In Ijarah Muntahia Bittamleek (lease-ending-with-ownership), the lessor bears asset risk during the lease — Ijarah is a sale + lease structure, not a loan. The premium reflects the bank's profit + risk premium over the lease horizon.

Same deterministic math runs as a Python package, an MCP server for AI agents, and on this page. No API keys, no network — pure stdlib.

$ pip install calcnook $ uvx calcnook-mcp

>>> from calcnook.core.islamic.ijarah import calculate
>>> r = calculate(30_000, 600.0, 5)
>>> round(r.total_cost_of_ownership, 2)
36001.0