UAE mortgage calculator: estimate your monthly payment in 60 seconds
A UAE mortgage calculator estimates your monthly mortgage payment by combining the loan amount, the bank’s interest rate (or EIBOR plus margin for variable products), and the term in years. For an AED 1.5M loan at 4.25% over 25 years, the monthly payment is roughly AED 8,127 (source: amortisation formula, May 2026 rates).
TL;DR: the verdict
- Three inputs only: loan amount, interest rate, term in years.
- Best fixed rates from UAE banks in May 2026 sit between 3.99% and 4.49% (source: bank rate sheets, May 2026).
- 3-month EIBOR is 3.69% (source: CBUAE, May 2026); add a bank margin of 1.25%-2.50% for variable products.
- The calculator does not include DLD 4%, agency fees, life insurance, or valuation. Budget another 7%-9% of property price upfront.
- Use the live calculator for an exact figure tied to current rates.
What is a UAE mortgage calculator and how does it work?
A UAE mortgage calculator is a tool that turns three numbers (loan amount, interest rate, and term) into one number you actually care about: your monthly payment in dirhams. Behind the scenes, every mortgage calculator in the UAE uses the same amortisation formula. The bank you eventually borrow from will use the same formula. The only thing that changes is the inputs.
The formula is the standard PMT equation:
M = monthly payment (AED)
P = principal (loan amount)
r = monthly interest rate (annual rate ÷ 12)
n = total number of monthly payments (years × 12)
If you prefer a worked answer to a formula, our UAE mortgage calculator 2026 does this in real time with live rates from 12+ UAE banks. Put in the loan amount, pick a rate from the panel, set the term, and it returns the monthly figure plus the total interest cost over the full term.
What inputs does the calculator need?
Three required inputs and two optional ones:
- Loan amount (P). Property price minus your down payment. For expats, the minimum down payment is 20% on property up to AED 5M and 30%+ above that, set by CBUAE Notice 31/2013. UAE nationals can put down 15% on the first AED 5M.
- Interest rate (r). Annual rate offered by the bank. Best 5-year fixed rates from major UAE banks in May 2026 fall between 3.99% and 4.49% (source: Emirates NBD, FAB, ADCB, HSBC rate sheets, May 2026). Variable rates are quoted as EIBOR + margin (1.25%-2.50%).
- Term (n). Length of the loan in years. The UAE standard is 25 years, capped so the loan finishes by age 65 for salaried borrowers and age 70 for self-employed.
- Optional: down payment percentage if you want the calculator to back-solve from a property price.
- Optional: insurance bundle estimate, typically 0.4% of outstanding balance per year for life cover plus AED 1,500-2,500 annually for property cover.
How does the UAE calculation differ from US/UK formulas?
The maths is identical. The structural rules around it are not.
In the United States, mortgages run for 30 years by default and most loans are fixed for the full term. In the UK, 25-year terms are normal but a 2- or 5-year fix is the dominant product, with the rate reverting to the lender’s standard variable rate after the fix expires. UAE mortgages sit between these two: a 25-year term, a 1- to 5-year fixed period, then a revert rate of EIBOR plus the bank’s margin.
The other UAE-specific constraints a calculator should respect:
- LTV caps. Maximum loan-to-value is 80% for UAE nationals on a first home up to AED 5M, and 75% for expats (CBUAE Notice 31/2013). The calculator must cap the loan amount accordingly.
- Debt burden ratio (DBR). Total monthly debt obligations cannot exceed 50% of your monthly income (CBUAE rule). A good calculator flags this before you apply.
- Age cap. The loan term must end by age 65 for salaried, 70 for self-employed.
- Reference rate. Variable products use 3-month EIBOR (3.69% in May 2026 per CBUAE), not SONIA, SOFR, or a base rate plus tracker.
What is a realistic monthly payment in Dubai right now?
Below are the indicative monthly payments at the May 2026 best fixed rates from major UAE banks. All figures assume a 25-year term and use the PMT formula. Source: bank rate sheets, May 2026.
| Loan amount | Rate (5-yr fix) | Monthly payment | Total interest (25 yrs) | Indicative bank |
|---|---|---|---|---|
| AED 1,000,000 | 4.25% | AED 5,418 | AED 625,394 | Emirates NBD |
| AED 1,500,000 | 4.25% | AED 8,127 | AED 938,090 | FAB |
| AED 2,000,000 | 4.25% | AED 10,836 | AED 1,250,787 | ADCB |
| AED 3,000,000 | 4.25% | AED 16,254 | AED 1,876,181 | HSBC |
| AED 5,000,000 | 4.49% | AED 27,803 | AED 3,340,805 | HSBC Premier |
For Islamic alternatives (Ijara or Diminishing Musharaka structures), the May 2026 best profit rate from ADIB, DIB, and Emirates Islamic sits at 3.25%-3.75% (source: bank rate sheets, May 2026). On AED 1.5M over 25 years at 3.50%, the monthly payment is approximately AED 7,510, about AED 617 less than the conventional figure above. See our Islamic mortgage guide for the structural detail.
How does EIBOR change my monthly payment?
Could you walk me through how monthly mortgage payments are calculated in the United Arab Emirates when you’re on a variable product? The short answer: your rate is split in two. Half is EIBOR (the wholesale UAE interbank rate), half is your bank’s margin (their fixed profit). Your monthly payment moves whenever EIBOR resets.
3-month EIBOR is 3.69% (source: CBUAE, May 2026). Bank margins on variable mortgages range from 1.25% to 2.50% depending on borrower profile. Add them and you get an all-in rate of 4.94% to 6.19%, which is why fixed rates around 4.25% currently look attractive.
Sensitivity on a AED 1.5M, 25-year loan:
| Scenario | EIBOR | + Margin | All-in rate | Monthly payment |
|---|---|---|---|---|
| Today | 3.69% | 1.50% | 5.19% | AED 8,938 |
| EIBOR −1% | 2.69% | 1.50% | 4.19% | AED 8,094 |
| EIBOR +1% | 4.69% | 1.50% | 6.19% | AED 9,810 |
| EIBOR +2% | 5.69% | 1.50% | 7.19% | AED 10,712 |
A 1 percentage point move in EIBOR shifts the monthly payment by AED 858-872 on this loan, or roughly AED 10,300+ a year. For a deeper walkthrough see our EIBOR explainer.
What does the calculator NOT show you?
A standard UAE mortgage calculator returns principal and interest. It does not include the costs that surround the mortgage. Budget another 7%-9% of the property price upfront and around 0.4%-0.6% of the outstanding balance per year ongoing.
| Cost | Amount | When paid |
|---|---|---|
| DLD transfer fee | 4% of property price | At completion |
| Agency fee | 2% of property price | At completion |
| Mortgage registration | 0.25% of loan + AED 290 | At completion |
| Bank processing fee | 0.5%-1% of loan | At drawdown |
| Valuation fee | AED 2,500-3,500 | At application |
| Trustee / title-deed | ~AED 4,000 | At completion |
| Life insurance | ~0.4% balance / yr | Annual |
| Property insurance | AED 1,500-2,500 / yr | Annual |
For a complete fee walkthrough see our article on UAE mortgage down payments and upfront costs and our methodology page for how we compute the all-in cost across products.
“Is there a decent UAE mortgage calculator that actually works?”
That phrasing comes up often on forums, usually from someone who has just punched their numbers into three different tools and got three different answers. The disagreement is rarely the formula. It is the assumptions. Some calculators silently apply a default 25-year term. Some assume a 20% down payment without showing you. Some quote the headline fixed rate and ignore the revert-to-variable rate that kicks in after year 5.
Here is what a useful UAE-specific calculator should do: pull live rates from named banks, enforce CBUAE LTV caps by nationality, project the revert rate for fixed products, and surface the DBR check before you apply. Our calculator does all four. Where it cannot show the future (nobody can), we lay out the EIBOR sensitivity table above so you can see the range of monthly payments you are actually signing up for.
Bottom line
A UAE mortgage calculator is a 60-second sanity check: loan amount, rate, term, monthly payment. The formula is universal. What changes a useful UAE calculation are the rate panel it pulls from, the LTV and DBR rules it enforces, and whether it shows you the EIBOR sensitivity for variable products. Today, an AED 1.5M, 25-year mortgage at the 4.25% best-fixed rate (source: UAE bank rate sheets, May 2026) costs roughly AED 8,127 per month. Adjust the inputs, the answer adjusts predictably.
Run your own numbers on the live calculator, see the underlying rate panel on the compare rates page, and read the rest of the Knowledge Hub for context on the fees, schemes, and bank-by-bank differences that surround the headline payment figure.
Frequently asked questions
What is a UAE mortgage calculator and how does it work?
A UAE mortgage calculator is a tool that estimates your monthly home loan payment using three inputs: the loan amount in dirhams, the annual interest rate (or EIBOR plus your bank’s margin if variable), and the term in years. It applies the standard amortisation formula used by every UAE bank and returns a single monthly figure plus a total interest number for the full loan term.
How do I calculate a UAE mortgage payment for a property in the UAE?
Take the property price, subtract the minimum down payment (20% for expats, 15% for UAE nationals on property up to AED 5M, per CBUAE Notice 31/2013), and that gives you the loan amount. Multiply by an interest rate from 3.99% to 5.49% (typical May 2026 range from Emirates NBD, FAB, ADCB, HSBC). Divide the term by 12 to get monthly periods, then apply the PMT amortisation formula to get the monthly payment.
Could you walk me through how monthly mortgage payments are calculated in the United Arab Emirates?
UAE banks use the standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (years × 12). Islamic mortgages reach the same monthly figure but call the rate a profit rate rather than interest, and the contract is structured as Ijara or Diminishing Musharaka.What is a realistic monthly payment in Dubai right now?
On a AED 1.5M mortgage at 4.25% over 25 years, the monthly payment is approximately AED 8,127. On AED 2M at the same rate and term, it is AED 10,836. On AED 3M, it is AED 16,254. These figures use the May 2026 best fixed rates from major UAE banks (source: MortgageCompare.ae rate panel, May 2026). Add roughly AED 1,300-1,800 monthly for life insurance and property insurance bundled by most lenders.
How does EIBOR change my monthly payment?
On a variable rate UAE mortgage, your interest rate equals 3-month EIBOR plus a fixed margin set by your bank (typically 1.25%-2.50%). EIBOR is published daily by the CBUAE and is currently 3.69% (CBUAE, May 2026). Your rate resets every 3 or 6 months depending on the contract. A 1 percentage point change in EIBOR shifts the monthly payment by around AED 917 on a AED 1.6M, 25-year loan.
What does the calculator NOT show you?
Standard UAE mortgage calculators show monthly principal and interest only. They typically exclude DLD transfer fee (4% of property price), agency fee (2%), mortgage registration fee (0.25% of loan), processing fee (0.5%-1% of loan), valuation fee (AED 2,500-3,500), life insurance (around 0.4% of outstanding balance per year), property insurance, and trustee fees (around AED 4,000). Total upfront costs run 7%-9% of the property price.
Is there a decent UAE mortgage calculator that actually works?
Yes. The calculator on MortgageCompare.ae uses live rates from 12+ UAE banks, applies CBUAE Notice 31/2013 LTV caps automatically, and returns both the monthly payment and the total cost of borrowing over the full term. It also flags whether your debt burden ratio (DBR) breaches the CBUAE 50% income cap before you apply, which avoids wasted pre-approval applications.
How does the UAE calculation differ from US or UK formulas?
The PMT formula itself is identical worldwide. The differences are structural: UAE down payments are 15%-25% (vs 5%-10% in the UK), maximum LTV is set by CBUAE Notice 31/2013, the typical term is 25 years and capped at age 65 for salaried borrowers (70 for self-employed), and most variable products reference 3-month EIBOR rather than SONIA, SOFR, or a base rate plus tracker.
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