How is the monthly installment calculated?
Using the standard "amortizing" formula: a fixed amount each month covers part principal and part profit, where the profit share is higher in the early installments (since the remaining balance is larger) and gradually decreases. For a mortgage, the financing amount itself is first calculated by subtracting the down payment from the property value.
Compare the actual offer from more than one bank or financing company before signing — the difference between a 4% and 6% profit margin on a long-term mortgage can reach tens of thousands of SAR. Also make sure the installment-to-income ratio stays within the limits your bank allows.
FAQ
What's the difference between a personal loan and a mortgage in this calculator?
For a personal loan, you enter the financing amount directly. For a mortgage, you enter the property value and down payment percentage, and the calculator automatically computes the actual financing amount.
What's the minimum down payment for a mortgage in Saudi Arabia?
Financing for a citizen’s first home may reach 90% of the property value under SAMA rules, meaning the down payment may start at 10%. This is not universal: the property, lender and eligibility affect the offer. Request a written offer showing the actual down payment and fees.
Is the profit rate entered here the same as what the bank will offer me?
Not necessarily — this calculator is an estimate based on the rate you enter. The actual rate varies by bank, your credit report, and your employment tenure.
Source
APR calculation guidance and maximum loan-to-value (LTV) ratio — Saudi Central Bank (SAMA).
SAMA: first-home financing limit for citizens.
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Last updated: July 2026
This calculator is a general estimate, not an official financing offer or a substitute for the actual offer from your bank. Read the full disclaimer.