Murabaha Financing: Cost-Plus Sale Explained

Murabaha Financing: Cost-Plus Sale Explained

By HalalWallet Editorial Team September 19, 2025

Understanding Murabaha

Murabaha is a cost-plus sale structure where the lender buys the property and sells it to you at a pre-agreed profit margin. The total price is fixed upfront, eliminating any uncertainty.

Key Features

  • Fixed profit margin agreed upfront
  • No compounding interest
  • Transparent pricing
  • Predictable monthly payments

When to Choose Murabaha

Murabaha is ideal for buyers who want certainty in their payments and prefer a straightforward financing structure without the complexity of shared ownership.