Comprehensive Calculator Guide
This calculator works out the monthly rent on a lease ending in ownership (ijara), as Saudi banks and finance companies offer it, at a flat yearly profit rate. A SAR 100,000 car with SAR 10,000 down at 4% over five years costs SAR 1,800 a month, SAR 118,000 in all. A 30% final payment lowers the rent to SAR 1,300 but leaves SAR 30,000 due at the end.
How it’s worked out and what to check
Profit = amount financed × flat rate × years, charged on the full amount throughout. The rent is (financed + profit − final payment) ÷ months. Because the balance falls while profit doesn’t, the annual percentage rate (APR) the central bank requires lenders to disclose is higher — about 7.4–7.7% for 4% flat over five years, depending on the method — and it’s the figure to compare offers by.
In ijara the financier buys the car and leases it to you, transferring ownership at the end by a separate contract. Saudi banks offer it with their Sharia boards’ approval; standards require the lessor to own the car first and bear ownership risks. Read who covers insurance and major repairs, and what happens on early settlement.
How to Use
- Enter the car price and down payment.
- Enter any final payment as a share of the price, the flat profit rate and the term.
- Press “Work out the rent” to see the monthly rent, the profit and the total.
Formula Used
Profit = financed × rate × years | Rent = (financed + profit − final payment) ÷ months
Practical Examples
- Example 1
- SAR 100,000, 10,000 down, 4%, 5 years: rent 1,800, total 118,000.
- Example 2
- Same with a 30% final payment: rent 1,300, plus 30,000 at the end.
Important Tips
- Compare offers by APR, not the flat rate.
Common Mistakes to Avoid
- Choosing a low rent from a large final payment without planning to pay it.
Frequently Asked Questions
- How is a car lease payment calculated?
- Add profit (financed × rate × years) to the amount financed, subtract any final payment and divide by the months.
- What is a final (balloon) payment?
- Part of the price deferred to the end, lowering the rent but due in one go.
- Flat rate or APR?
- APR reflects the true cost on the falling balance and is higher; compare by it.