Loan Calculator Saudi Arabia, SAR Tawarruq and SAIBOR

This calculator helps you estimate your monthly payment in Saudi riyals for personal, car, or home finance. It shows the monthly amount, the total profit or interest, and a full schedule, and it supports both reducing balance and flat rate methods. Financing in Saudi Arabia is mostly Islamic and Sharia-compliant, so you pay a profit rather than interest, and the market is regulated by the Saudi Central Bank, known as SAMA. This page is part of our loan calculators by country.

How to use the Saudi Arabia finance calculator

The currency is set to SAR. You can switch it if you need another currency.
Enter the finance amount in riyals.
Enter the rate the bank quoted and the tenure in years.
Read your results: the monthly payment, the total profit or interest, and a year by year schedule.

How financing works in Saudi Arabia

Most financing in Saudi Arabia is Sharia-compliant, so banks charge a profit rather than interest, usually on a reducing balance where the amount is calculated on what you still owe. The monthly payment uses the standard formula:

Payment = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Here P is the amount financed, r is the monthly rate, and n is the number of months.

Worked example: Finance SAR 100,000 at an 8% yearly rate for 5 years. The monthly payment is about SAR 2,028, and the total profit or interest is about SAR 21,658. Use the rate your bank actually offers, since rates vary by product and customer.

Islamic finance products in Saudi Arabia

Because the market is Sharia-compliant, you will see profit based contracts rather than ordinary loans:

Tawarruq and Murabaha are common for personal finance. The bank buys an asset and sells it to you at a marked up price paid in installments, which gives you funds without charging interest.
Ijarah is a lease used for car and equipment finance, where the bank owns the asset and you pay rent, then own it at the end.
Diminishing Musharakah or Ijarah is used for home finance, where you and the bank co-own the property and you buy out its share over time.

Insurance is provided as takaful. The monthly figure can look like a normal loan, but the contract is different, so read the product terms with the bank.

SAMA rules and APR

The Saudi Central Bank (SAMA) sets responsible lending rules. Banks must show you a clear APR, the all in yearly cost, so you can compare offers fairly. There are also limits on how much of your monthly salary can go to finance repayments, which protect you from over borrowing. The exact limits depend on your situation and can change, so confirm your eligibility and the current rules with the bank.

Fixed vs floating (SAIBOR linked) rates

Some finance is offered at a fixed rate for the whole term, while other products use a floating rate linked to SAIBOR, the benchmark interbank rate. With a floating rate, your monthly amount can change if SAIBOR moves. Ask the bank which applies, and if it is floating, run this calculator at a higher rate to see the worst case.

Common finance types in Saudi Arabia

Personal finance: usually Tawarruq based, with the monthly payment limited to a share of your salary.
Car finance: often an Ijarah lease, with a down payment and required takaful.
Home finance: long tenure, secured on the property, with support available for Saudi citizens through the Real Estate Development Fund.
Business or SME finance: based on the business and its cash flow.

Reducing balance vs flat rate

Most Saudi banks calculate on a reducing balance, but always check, because a flat rate charges profit on the full original amount the whole time and costs more. As a rough guide, a 5% flat rate is close to about 9.8% reducing over 5 years. Compare both with our flat rate calculator and reducing balance calculator, and find the true cost with the effective interest rate calculator.

Tips for borrowers in Saudi Arabia

Compare the APR, not a flat number, and include any fees and takaful.
Check the salary limit so your total monthly deductions stay affordable.
Ask if the rate is fixed or SAIBOR linked, so you know if your payment can change.
Ask about early settlement rules before you sign.
For a home, check Real Estate Development Fund support if you are eligible.

Related tools and other countries

Plan a specific finance with our car loan, personal loan, or mortgage calculators, or build a full amortization schedule. Borrowing elsewhere? Try:

UAE (AED) · Pakistan (PKR) · India (INR) · Nigeria (NGN) · United Kingdom (GBP) · All countries

FAQ – Loan Calculator Saudi Arabia

Frequently asked questions

How is the monthly payment calculated in Saudi Arabia?

Most banks use a reducing balance method and charge a profit rather than interest. The payment is P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the amount financed, r is the monthly rate, and n is the number of months.

Is financing in Saudi Arabia Islamic?

Mostly yes. The market is largely Sharia-compliant, so you pay a profit instead of interest, through contracts like Tawarruq, Murabaha, Ijarah, and Diminishing Musharakah. The monthly amount can look similar to a normal loan, but the contract is different.

What are Tawarruq and Murabaha?

They are Sharia-compliant ways to provide finance. The bank buys an asset and sells it to you at a marked up price paid in installments, so you get funds or goods without being charged interest.

What is SAIBOR?

SAIBOR is the Saudi Arabian Interbank Offered Rate, the benchmark used to price floating rate finance. If your rate is linked to SAIBOR, your monthly payment can change when SAIBOR moves.

Is there a limit on how much I can borrow?

Yes. SAMA rules limit how much of your monthly salary can go to finance repayments, which protects you from over borrowing. The exact share depends on your situation and can change, so confirm with the bank.

Can I settle my finance early?

Usually yes, and on a reducing balance it saves profit. Some products charge an early settlement amount, so check the terms before making a large extra payment.

Built and maintained by Hira Fatima, BSc in Computer Science (BSCS)

Hira builds, tests, and maintains the calculators on loancalc.io and writes the guides that go with them.
How we calculate: Reducing balance uses the standard EMI formula; flat rate charges interest on the full original amount. | Last updated: June 2026

Disclaimer: This calculator gives estimates for planning only and is not financial advice. Your actual figures may differ due to fees, taxes, and lender policies. Confirm with your bank or lender before you borrow.