For a ৳50 lakh flat with 30% paid yourself and the rest at a 13.49% rate of rent over 20 years, the monthly instalment is about ৳42,233 and total rent about ৳66,35,904. Try your own figures below.
৳
= 50 lakh taka
%
= ৳15,00,000. The bank buys the rest and you buy it back in instalments.
%
An example rate is filled in — enter your bank's offered rate.
years
= 240 months / 240 instalments
Monthly instalment (rent + equity)
৳42,233
240 instalments
Asset price
৳50,00,000
Your share (at the start)
৳15,00,000
Bank's share
৳35,00,000
Total rent
৳66,35,904
Total cost, all in
৳1,16,35,904
For an asset of ৳50,00,000, paying ৳15,00,000 yourself and financing the rest at a 13.49% rate of rent over 20 years, the monthly instalment is ৳42,233 and total rent is ৳66,35,904.
Under HPSM you and the bank buy the asset jointly; you pay rent on the bank's share and buy that share back in instalments. Rules, fees and insurance differ by bank — get the final figures from your bank.
The example rate of rent comes from one institution's published rates; being verified — enter your bank's rate.
How this was calculated
Price ৳50,00,000: your share ৳15,00,000, bank's share ৳35,00,000
Monthly rate of rent = 13.49% ÷ 12 = 1.1242%
Equal instalment = ৳42,233 (240 months), covering both rent and the bank's share
Month 1: rent ৳39,346, equity bought ৳2,887; rent falls as the bank's share shrinks
Total rent ৳66,35,904; total cost including the down payment ৳1,16,35,904
Part of each instalment is rent on the bank’s remaining share; the rest buys ownership. Early on rent is the larger part; later the ownership part grows.
Examples
Flat: price ৳50,00,000, your share 30% (৳15,00,000), bank’s share ৳35,00,000, rate of rent 13.49%, 20 years.
Monthly instalment about ৳42,233
Month 1: rent ৳39,346, equity bought ৳2,887
Total rent about ৳66,35,904; total cost including the down payment about ৳1,16,35,904
Car: price ৳20,00,000, your share 20%, 13.49%, 5 years — about ৳36,808 a month, total rent about ৳6,08,451.
Good to know in Bangladesh
Rates differ by bank: 13.49% above is an example from one institution’s published rates; large Islamic banks may charge more or less.
Extra costs: processing, valuation, registration and insurance are not included.
Ownership papers: the bank’s share is recorded during the term; full ownership passes after the last instalment.
More: HPSM vs Ijarah vs Murabaha
Under HPSM you part-own the asset from day one and buy the bank’s share in instalments. Under Ijarah the bank owns the whole asset during the lease; you pay rent and ownership passes at the end. Under Murabaha the bank buys goods and sells them to you at a fixed price including its profit, set at the start. HPSM is the common choice for long-term assets like homes and flats.
Frequently asked questions
What is HPSM?
Hire Purchase under Shirkatul Melk (HPSM) is a joint-ownership hire purchase. You and the bank buy the asset together; you pay rent for using the bank's share and buy that share back in instalments. With the last instalment the asset is fully yours.
Why does the instalment look like a normal bank loan?
Rent is charged on the bank's remaining share, which shrinks with every instalment, so equal instalments work out like a reducing-balance loan. The difference is in the contract: the deal rests on joint ownership and rent, not on interest.
How much down payment is needed?
It depends on the bank and the asset; home finance usually asks for 30% or more as your own share. Check the exact terms with your bank.
Can I pay off early?
Most banks allow it: you pay for the bank's remaining share and take full ownership, so no further rent is due. Check the contract for any fee.
Is the rate of rent fixed for the whole term?
Many contracts allow the rate of rent to be reset at intervals. This calculator assumes one rate for the whole term.
Also searched as
hpsm calculator · islamic home finance calculator bangladesh · islamic car finance instalment · shirkatul melk · এইচপিএসএম কিস্তি হিসাব