How can I compare Islamic finance with traditional finance without getting confused?

Make the comparison on two levels.

Steps

1. First, understand the contract: is it Murabaha, Ijarah, Musharakah, or Tawarruq, and what does each mean for you?

2. Second, calculate the costs: down payment, net financing, monthly installment, number of installments, fees, insurance, total paid, and early repayment.

3. Two products might have similar monthly installments, but their ownership terms, exit conditions, and costs could be very different.

The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.

Source

• AAOIFI — Sharia Standards