How is Ijara different from an interest loan?

In a loan, interest accrues on a reducing balance. In Ijara, the bank owns the asset and leases it to you at a fixed rent that includes a profit set upfront, then ownership transfers to you at the end; that is what makes it Sharia-compliant (halal), unlike riba.

When do I become the owner of the asset?

The bank stays the owner throughout the Ijara term; ownership transfers to you at the end, via a promise of sale or gift, after all rents are paid.

Is the margin rate official?

No. There is no single national margin; each bank sets it by file, asset and term. The default here is indicative for simulation only — enter the actual margin from your bank's offer.

Does the result include taxes, fees and insurance?

No. The simulation estimates the financed amount, the margin and the monthly rent. A tax, file-study fees and takaful insurance may apply depending on the product and bank; ask for the full offer.

Which assets suit Ijara?

Mostly real estate and professional equipment/machinery. Offered by Islamic banks (Al Salam, Al Baraka) and the Islamic windows of public banks accredited by the National Sharia Authority.

Islamic finance

Ijara Simulator (lease-to-own)

Compute the monthly rent and total cost of an Ijara Muntahia Bittamlik Islamic financing by bank.

Indicative estimate · 2026

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Bank / Islamic window

Asset type

Asset price

Price of the property or equipment

First payment

Amount paid upfront, deducted from the financed amount

Term (years)

per year

Ijara contract term

Annual profit margin (%)

Set by the bank; leave empty for an indicative margin by asset

Monthly income (optional)

To estimate your repayment capacity (≈ 40% of income)

Monthly rent

44,500DA

Financed amount56%

Total profit margin44%

Financed amount3,600,000DA

Applied margin6.5%

Monthly rent44,500DA

Total profit margin2,808,000DA

Total rents6,408,000DA

Margin share of the financed amount78.0%

NoteOwnership of the asset transfers to you at the end of the Ijara term.

NoteIndicative simulation, not an offer: the margin is set by the bank, and file fees plus takaful insurance may apply. Check with your bank for the official offer. This is not a fatwa — the products are certified by the bank's Sharia board and the National Sharia Authority.

Total rents6,408,000DA

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How it works

Pick the bank and asset type, enter the price, first payment and term.
Enter the margin the bank offers (or keep the indicative margin).
We compute financed = price − first payment, margin = financed × rate × years, then rent = (financed + margin) ÷ number of months.

Sources: Bank of Algeria regulation no. 20-02 (15 Mar 2020) on Islamic finance · banks' official simulators (BNA, BDL, BEA, BADR, Al Salam, Al Baraka). Margins are set by the bank.

Banque d'Algérie (opens in a new tab)

Hsabet is not affiliated with any of these official organizations – cited for reference only.

Frequently asked questions

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This tool simulates Ijara Muntahia Bittamlik financing (lease-to-own): the bank buys the asset and leases it to you at a fixed monthly rent over the term, then ownership is transferred to you at the end. Interest-free (no riba): the profit is fixed, set upfront and embedded in the rent, not on a reducing balance.

Enter the asset price, the first payment, the term and the margin rate (set by the bank). The result is indicative — a simulation, not an offer; the margin, fees and takaful are set in your contract.