Mortgage payment calculator UAE: monthly repayments by loan size
- On AED 1M at 4.25% over 25 years, the monthly repayment is AED 5,418 and total interest paid is AED 625,400 (source: PMT formula, bank rate sheets, June 2026).
- At the best conventional rate of 3.78%, the same AED 1M, 25-year loan costs AED 5,158/month, saving AED 260/month versus 4.25%.
- Shortening from 25 to 20 years on AED 1M at 4.25% raises the payment by AED 775/month but saves AED 139,100 in total interest over the life of the loan.
A UAE mortgage payment calculator converts loan size, interest rate and term into a monthly repayment using the PMT amortisation formula. At 4.25% over 25 years, the monthly payment is AED 5,418 per AED 1M borrowed. At the best conventional fixed rate of 3.78%, that drops to AED 5,158 per AED 1M. Scale up or down proportionally for other loan sizes (source: PMT formula, bank rate sheets, June 2026).
TL;DR: the key figures
- AED 1M at 4.25%, 25 years: AED 5,418/month, total interest AED 625,400.
- AED 1.5M at 4.25%, 25 years: AED 8,127/month, total interest AED 938,100.
- AED 2M at 4.25%, 25 years: AED 10,836/month, total interest AED 1,250,800.
- Best conventional rate (3.78%) saves AED 260/month vs 4.25% on AED 1M, 25 years.
- Shortening term to 20 years raises payment but saves over AED 139,000 in interest on AED 1M.
- Use the live calculator with your actual salary, loan size and current rate for a personalised figure.
How a UAE mortgage payment calculator works
All UAE mortgage calculators use the same underlying formula: PMT, the standard loan amortisation formula. It takes three inputs and converts them into a monthly payment:
- Loan amount (P): the principal you borrow.
- Annual interest rate (r): divided by 12 to get the monthly rate.
- Term (n): the number of monthly payments (25 years = 300 payments).
The formula calculates the fixed monthly payment that, over n payments, repays the full principal and all interest. Early payments go mostly to interest. Later payments go mostly to principal. The monthly payment amount stays the same throughout the term (on a fixed-rate mortgage).
On a variable-rate mortgage, the monthly payment recalculates each time the rate changes. In the UAE, variable rates are typically EIBOR plus the bank’s margin, reset quarterly or annually. See current EIBOR on the EIBOR tracker.
Monthly repayments by loan size at 4.25% fixed, 25 years
The table below shows monthly payments and total interest for loan sizes from AED 500K to AED 3M, all at 4.25% over 25 years. Source: PMT formula. Figures rounded to nearest AED.
| Loan amount | Monthly payment | Total repaid (25 yrs) | Total interest |
|---|---|---|---|
| AED 500,000 | ~AED 2,709 | ~AED 812,700 | ~AED 312,700 |
| AED 750,000 | ~AED 4,064 | ~AED 1,219,200 | ~AED 469,200 |
| AED 1,000,000 | ~AED 5,418 | ~AED 1,625,400 | ~AED 625,400 |
| AED 1,250,000 | ~AED 6,773 | ~AED 2,031,900 | ~AED 781,900 |
| AED 1,500,000 | ~AED 8,127 | ~AED 2,438,100 | ~AED 938,100 |
| AED 2,000,000 | ~AED 10,836 | ~AED 3,250,800 | ~AED 1,250,800 |
| AED 2,500,000 | ~AED 13,545 | ~AED 4,063,500 | ~AED 1,563,500 |
| AED 3,000,000 | ~AED 16,254 | ~AED 4,876,200 | ~AED 1,876,200 |
Source: PMT formula. 4.25% annual rate, 25-year term, monthly payments, fully amortising. Figures are indicative. Actual bank offers vary.
How the rate changes your monthly payment
The table below shows how different rates change the monthly payment and total interest on a AED 1.5M mortgage over 25 years. These reflect the range of offers available from UAE banks in June 2026 (source: bank rate sheets, June 2026).
| Annual rate | Monthly payment (AED 1.5M) | Total interest (25 yrs) | Vs 4.25% (monthly) |
|---|---|---|---|
| 3.78% (best conventional) | ~AED 7,736 | ~AED 820,900 | −AED 391/month |
| 3.90% (best Islamic) | ~AED 7,835 | ~AED 850,500 | −AED 292/month |
| 3.99% | ~AED 7,870 | ~AED 861,000 | −AED 257/month |
| 4.25% | ~AED 8,127 | ~AED 938,100 | Base |
| 4.49% | ~AED 8,340 | ~AED 1,002,000 | +AED 213/month |
| 4.99% | ~AED 8,775 | ~AED 1,132,500 | +AED 648/month |
Source: PMT formula. 25-year term, monthly payments. Figures rounded to nearest AED 100 (monthly) and AED 100 (total). Rate comparison assumes full-term fixed rate for illustration. Real UAE products combine a fixed-period rate and a revert variable rate.
Compare rates from 20+ UAE banks on the rate comparison page to find the cheapest current offer.
How the term changes your payment and total interest
A longer term lowers your monthly payment but raises total interest. A shorter term raises the payment but reduces total interest significantly. The table below compares terms on a AED 1M mortgage at 4.25% (source: PMT formula).
| Term | Monthly payment (AED 1M, 4.25%) | Total interest | Interest saved vs 25 yrs |
|---|---|---|---|
| 25 years | ~AED 5,418 | ~AED 625,400 | Base |
| 20 years | ~AED 6,193 | ~AED 486,300 | ~AED 139,100 |
| 15 years | ~AED 7,520 | ~AED 353,600 | ~AED 271,800 |
| 10 years | ~AED 10,237 | ~AED 228,400 | ~AED 397,000 |
Source: PMT formula. 4.25% annual rate. Figures rounded to nearest AED 100. Maximum term in the UAE is 25 years; your personal maximum depends on age (loan must be repaid by age 65 for salaried borrowers).
If you are in your 40s, check your actual maximum term via the eligibility wizard before comparing payment tables, as the age cap may reduce your term.
AED 1.5M payment table: rate and term combined
This is the most common loan size for Dubai purchasers. The table shows monthly payments across three rates and three terms (source: PMT formula, bank rate sheets, June 2026).
| Term | 3.78% (best conventional) | 4.25% | 4.49% |
|---|---|---|---|
| 25 years | ~AED 7,736 | ~AED 8,127 | ~AED 8,340 |
| 20 years | ~AED 8,917 | ~AED 9,290 | ~AED 9,510 |
| 15 years | ~AED 10,931 | ~AED 11,280 | ~AED 11,520 |
Source: PMT formula. Figures rounded to nearest AED 10. Rate variation has a smaller monthly impact than term variation at these levels: moving from 3.78% to 4.49% at 25 years adds AED 604/month, while cutting from 25 to 20 years adds AED 1,163/month at the same 4.25% rate.
“My bank is quoting me AED 8,500/month but the online calculator shows AED 8,127 for AED 1.5M. Why the difference?”
Several things can explain the gap. The bank may be quoting a slightly higher rate than 4.25%. They may be including a life insurance premium rolled into the payment (common in UAE mortgages). They may be assuming a 20-year term if your age does not permit the full 25 years. Some banks also quote the payment rounded up to the nearest AED 50 or AED 100.
Ask the bank to confirm: (1) the exact annual rate they are using, (2) the term in months, (3) whether the insurance premium is included in that figure. Feed those three numbers into the calculator and you should arrive at their number. If you still cannot reconcile it, contact us via the advisor form.
What the monthly payment does not include
The PMT figure covers principal and interest only. Your actual monthly housing cost will also include:
- Life insurance / mortgage protection: required by most UAE banks, typically 0.20% to 0.40% of the outstanding balance per year, charged monthly. On AED 1.5M that is roughly AED 250 to AED 500/month at the start.
- Property insurance (home contents + structure): typically AED 100 to AED 300/month depending on property value.
- Service charges: billed annually but you can apportion monthly. Varies widely from AED 8 to AED 30+ per sqft per year.
- Maintenance and sinking fund: especially relevant in older buildings or villa communities.
A realistic all-in monthly housing cost estimate adds at least AED 500 to AED 1,000 to the bare PMT payment, depending on property type and building. Factor this into your affordability calculation before committing to a loan size.
Bottom line
On a AED 1M UAE mortgage at 4.25% over 25 years, the monthly payment is AED 5,418 with total interest of AED 625,400. Scale proportionally for other loan sizes. The rate matters: moving from 4.25% to the best conventional offer of 3.78% saves AED 260/month per AED 1M over 25 years, which is AED 78,000 in total interest. Shortening the term to 20 years raises the payment by AED 775/month but saves AED 139,100 in interest. Use the live calculator to find your exact figure with current rates.
Frequently asked questions
What is the monthly payment on a AED 1M mortgage in the UAE?
At 4.25% over 25 years, the monthly payment on a AED 1M UAE mortgage is approximately AED 5,418. At the best conventional rate of 3.78%, the payment drops to approximately AED 5,158. At 3.99%, it is approximately AED 5,254. All figures use the PMT amortisation formula (source: bank rate sheets, June 2026).
How much does the monthly payment change with loan size in the UAE?
UAE mortgage payments scale proportionally with loan size at the same rate and term. At 4.25% over 25 years: AED 500K costs AED 2,709/month, AED 1M costs AED 5,418/month, AED 1.5M costs AED 8,127/month, AED 2M costs AED 10,836/month. Each additional AED 100K adds approximately AED 542/month at this rate and term.
Does a shorter mortgage term reduce total interest paid in the UAE?
Yes. On AED 1M at 4.25%, a 25-year term costs AED 5,418/month with total interest of AED 625,400. Cutting to 20 years raises the payment to AED 6,193/month but reduces total interest to AED 486,300, saving AED 139,100. A 15-year term costs AED 7,520/month but only AED 353,600 in total interest.
What is the maximum mortgage term in the UAE?
The maximum mortgage term in the UAE is 25 years for salaried borrowers. The loan must be fully repaid by age 65 for salaried employees and by age 70 for self-employed borrowers. A 45-year-old salaried expat can borrow for a maximum of 20 years, not 25.
How does the interest rate affect monthly repayments in the UAE?
On a AED 1.5M mortgage over 25 years, each 0.25 percentage point rise in rate adds approximately AED 213 per month and AED 63,900 in total interest. Going from 3.78% to 4.49% adds around AED 592/month and over AED 177,000 in total interest (source: PMT formula, bank rate sheets, June 2026).
Is the UAE mortgage payment calculator the same for Islamic mortgages?
The monthly payment calculation is similar for Islamic mortgages because they use a diminishing balance structure that produces a payment pattern very close to conventional amortisation. The lowest Islamic profit rate currently starts from 3.90% (Dubai Islamic Bank), marginally above the best conventional rate of 3.78%, with conventional rates running up to 4.49% (source: bank rate sheets, June 2026).
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