Mourabaha: understand what you sign.
The bank buys the asset, then sells it to you at price + a fixed markup, paid in constant installments. Enter your numbers: the installment, the total cost, and the real difference with a conventional loan.
The markup is derived from the annual rate and the duration, the way institutions do it, then it is frozen: a written amount in the contract, no longer a rate.
At the equivalent rate, installment and total are close. The difference is structural: what is frozen on signing day, and what can still move.
Same installment, different structure: a Mourabaha has no shifting interest share, a conventional loan does.
| Month | Mourabaha (fixed) | Loan: interest | Loan: principal |
|---|---|---|---|
| 1 | 5,061 | 3,000 | 2,061 |
| 2 | 5,061 | 2,992 | 2,069 |
| 3 | 5,061 | 2,985 | 2,077 |
| … | |||
| 120 | 5,061 | 1,843 | 3,218 |
| … | |||
| 240 | 5,061 | 19 | 5,042 |
Conventional loan: settling early cancels the future interest. In this example, repaying everything after 10 years would avoid about 118,992 MAD of remaining interest.
Mourabaha: the markup is owed by contract. A rebate for early settlement sometimes exists, but it stays at the institution's discretion, nothing is guaranteed upfront.
That is the real trade-off: a Mourabaha buys you cost certainty; a conventional loan keeps a cheaper early exit. Neither is free.
Ijara is a lease with an optional ownership transfer at the end: the institution stays the owner and you pay rent. The mechanics, rent, maintenance, purchase option, differ from a fixed-markup sale, and this calculator does not cover it.
Before you sign
Financing is a long-term commitment, whatever its form. The right question is not "which installment?" but "do I understand this total cost, and can my life carry it for 20 years?". If the answer hesitates, waiting and saving more is also a decision.
You see the installment. See what it does to your month.
In Namup, a declared installment enters your plan: your real Available, every month, installment included. Free, in a few minutes.
Only to send you the link. No list, no follow-up.
This tool is educational: it shows the mechanics of a Mourabaha financing and of a conventional loan with your numbers. It does not replace an institution's official offer, arrangement fees, insurance and taxes are not included, and it is neither financial advice nor an invitation to take on financing.
Mourabaha or conventional mortgage: which one costs less?
At the equivalent rate, neither by construction, the difference is structural. A Mourabaha freezes the total cost in the contract: certainty, but the markup is owed even on early settlement (rebates are discretionary). A conventional loan recalculates interest on the remaining balance: the final cost is rate-sensitive, but early repayment is cheaper. Always compare the total cost, never just the installment.
How is the markup of a Mourabaha calculated?
The institution buys the asset and sells it to you at price + markup, paid in constant installments. In practice the markup is derived from a quoted annual rate and the duration, which is what this calculator reproduces. Once the contract is signed it never moves: it is an amount, no longer a rate.
Does this calculator replace my bank's own simulation (Bank Assafa, Umnia Bank…)?
No. Each institution has its own conditions, arrangement fees and insurance, and only its official offer is binding. This calculator teaches you the mechanics so you can read that offer with clear eyes: always ask for the full installment schedule and the total cost before signing.
Can my Mourabaha installment increase during the contract?
No: the price and the markup are fixed at signing, so the installment is constant from the first month to the last. That is the big difference with a variable-rate loan, where the installment or the duration can be revised along the way.