Car Loan Calculator (KSA)
Calculate your monthly car installment in Saudi Arabia. Sharia-compliant Murabaha and Ijara with SAMA 60-month tenure limit and DTI check.
🚗 Car Loan Calculator (KSA)
Car Financing Summary
Down PaymentSAR 12,000.00
Financing AmountSAR 108,000.00
Monthly InstallmentSAR 2,013.45
Total Cost (over tenure)SAR 120,806.76
Total Profit PaidSAR 12,806.76
Step‑by‑Step
Step 1Vehicle Price: SAR 120,000.00
Step 2Down Payment (10%): SAR 12,000.00
Step 3Financing Amount: SAR 120,000.00 − SAR 12,000.00 = SAR 108,000.00
Step 4Annual Profit Rate (APR): 4.5%
Step 5Monthly Rate: 4.5% ÷ 12 = 0.38%
Step 6Tenure: 60 months
Step 7Monthly Installment: SAR 2,013.45
Step 8Total Cost: SAR 2,013.45 × 60 months = SAR 120,806.76
Step 9Total Profit Paid: SAR 120,806.76 − SAR 108,000.00 = SAR 12,806.76
⚠️ SAMA limits non-real-estate financing to 60 months max. Comprehensive insurance is mandatory. DTI recommended ≤50%. Actual bank offers may vary based on credit score & salary.
Car Financing in Saudi Arabia
Car financing (تمويل السيارات) is one of the most active segments of Saudi Arabia's consumer finance market. With over 68 licensed finance companies as of September 2025 and all major banks offering auto financing products, Saudi residents have a wide range of Sharia-compliant options to finance both new and used vehicles.
All auto financing in the Kingdom is regulated by the Saudi Central Bank (SAMA) and must comply with Islamic finance principles — using profit-based structures instead of interest (riba).
Sharia-Compliant Auto Financing Products
| Product | How It Works | Rate | Ownership |
|---|---|---|---|
| Murabaha | Bank buys car, sells to you at cost + profit margin | Fixed | Yours immediately |
| Ijara | Bank buys car, leases to you. Own at end of lease | Can be variable | At lease end |
Murabaha — Cost-Plus Auto Financing
Murabaha (مرابحة) is the most popular auto financing product in Saudi Arabia:
- Car registered in your name from the start
- Fixed monthly installments — predictable budgeting
- Total cost agreed upfront — cannot increase
- No concerns about residual value — you own the car outright
- Available from all major Saudi banks
Ijara — Lease-to-Own
Ijara (إجارة) is the lease-to-own alternative:
- Car remains in the bank's name during the lease
- Monthly payments may fluctuate if variable rate
- At lease end: pay final amount (balloon) to own, or return the car
- Lower monthly payments with balloon option
- Good for those who change cars frequently
SAMA Regulations for Auto Financing
| Rule | Detail |
|---|---|
| Maximum Tenure | 60 months (5 years) — non-real-estate limit |
| DTI Recommendation | Total monthly debt ≤ 50% of net salary |
| Early Repayment | Penalty capped at 3 months' profit or remaining profit (lesser) |
| Insurance | Comprehensive insurance mandatory throughout |
| Balloon Max | 25–45% depending on bank (subject to terms) |
| Supervision | 68 licensed finance companies as of Sep 2025 |
Monthly Installment Formula
M = P × [r(1+r)n] / [(1+r)n – 1]
Where:
M = Monthly installment
P = Financing amount (vehicle price − down payment)
r = Monthly profit rate (annual rate ÷ 12 ÷ 100)
n = Total number of months
Where:
M = Monthly installment
P = Financing amount (vehicle price − down payment)
r = Monthly profit rate (annual rate ÷ 12 ÷ 100)
n = Total number of months
Worked Examples
Example 1: New Toyota Camry — SAR 120,000
| Detail | Value |
|---|---|
| Vehicle Price | SAR 120,000 |
| Down Payment (10%) | SAR 12,000 |
| Financing Amount | SAR 108,000 |
| APR | 4.5% |
| Tenure | 60 months |
| Monthly Installment | ≈ SAR 2,014 |
| Total Cost | SAR 120,840 |
| Total Profit Paid | SAR 12,840 |
Example 2: Used Car — SAR 60,000, Higher Rate
| Detail | Value |
|---|---|
| Vehicle Price | SAR 60,000 |
| Down Payment (20%) | SAR 12,000 |
| Financing Amount | SAR 48,000 |
| APR | 6% |
| Tenure | 48 months |
| Monthly Installment | ≈ SAR 1,128 |
| Total Cost | SAR 54,144 |
| Total Profit Paid | SAR 6,144 |
Example 3: Impact of Tenure Length
Same car: SAR 120K, 10% down, 4.5% APR — different tenures:
| Tenure | Monthly | Total Profit |
|---|---|---|
| 24 months | SAR 4,715 | SAR 5,160 |
| 36 months | SAR 3,211 | SAR 7,596 |
| 48 months | SAR 2,462 | SAR 10,176 |
| 60 months | SAR 2,014 | SAR 12,840 |
New vs Used Vehicle Financing
| Feature | New Vehicle | Used Vehicle |
|---|---|---|
| Typical APR | 3.5–5.5% | 4–7% |
| Max Tenure | 60 months | 48–60 months |
| Down Payment | 0–20% | 10–30% |
| Insurance | Comprehensive (mandatory) | Comprehensive (mandatory) |
| Vehicle Age Limit | Current year models | 5–7 years old max |
| Mileage Limit | N/A | May apply (bank-specific) |
| Warranty | Manufacturer warranty | ALJ offers 3yr/60K km |
Balloon Payments Explained
A balloon payment is a large lump-sum due at the end of your financing tenure. It reduces monthly installments but increases total cost:
| Bank | Max Balloon | Notes |
|---|---|---|
| Al Rajhi Bank | 25% | Different for salary vs non-salary transfer |
| Saudi National Bank (SNB) | 40% | 50/50 programs may differ |
| Abdul Latif Jameel | 45% | Commonly used with Toyota |
Saudi Auto Financing Providers
| Provider | APR (New) | Down Payment | Min Salary | Max Tenure |
|---|---|---|---|---|
| Al Rajhi Bank | ~3.99% | 0–10% | SAR 1,900–4,000 | 60 months |
| Saudi National Bank | ~4.25% | 10–20% | SAR 5,000 | 60 months |
| Bank Albilad | ~4.50% | 10% | SAR 4,500 | 60 months |
| Abdul Latif Jameel | ~4.75% | 10–20% | SAR 3,000 | 60 months |
| Emirates NBD | ~5.51% | 20% | SAR 5,000 | 60 months |
| Tasheel Finance | ~5.00% | 15–20% | SAR 3,000 | 60 months |
Eligibility Requirements
- Age: 21–60 years (up to 65 for government employees)
- Nationality: Saudi nationals and expatriates with valid Iqama
- Employment: 3–6 months minimum (longer for expats)
- Credit Score: SIMAH score of 700+ recommended
- Salary: SAR 3,000–5,000 minimum (bank-dependent)
Required Documents
- National ID (Saudi) or Iqama (expatriate)
- Salary certificate from employer
- Bank statements (last 3-6 months)
- SIMAH authorization (credit bureau check)
- Employment contract
- Vehicle quotation from dealer (for new cars)
How Other KSA Calculators Help
| Calculator | How It Helps with Car Buying |
|---|---|
| Salary Calculator | Calculate net salary for DTI assessment |
| Home Loan Calculator | Compare car vs home financing costs |
| GOSI Calculator | Banks verify employment via GOSI records |
| VAT Calculator | Calculate 15% VAT on vehicle purchase |