How do I know if an Islamic finance offer is suitable for my income and not just compatible with my beliefs?

Once you understand the formula, go back to the numbers.

Steps

1. Calculate the payment as a percentage of your net income, and factor in your current obligations, household expenses, and emergencies.

2. The product might be legally permissible but not suitable for your financial situation.

3. Leave a safety margin instead of basing your budget on the assumption that every month will pass without surprises.

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