Halal Investment Calculator
Enter the investment, return, zakat rate and purification percentage.
Value after zakat and purification
β
Enter values above
Total zakat paid
β
Total purification
β
Value without deductions
β
Effective annual return
β
Total deductions
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Investment amount ($) | 10000 |
| Expected annual return (%) | 8 |
| Zakat rate (%) | 2.5 |
| Dividend purification (%) | 3 |
| Years | 5 |
| Result | Value |
|---|---|
| Value after zakat and purification | $12,803 |
| Total zakat paid | $1,491 |
| Total purification | $133 |
| Value without deductions | $14,693 |
| Effective annual return | 5.07% |
| Total deductions | $1,623 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Halal Investment Calculator
- Investment amount ($) β default 10000
- Expected annual return (%) β default 8
- Zakat rate (%) β default 2.5
- Dividend purification (%) β default 3
- Years β default 5
- Press Calculate to update the results instantly.
Frequently asked questions
A 2.5% annual deduction reduces the effective return by roughly two percentage points. Over thirty years that is a material difference, which is why purifying and paying zakat promptly matters.
When a compliant company earns a small share of income from non-compliant sources, that proportion of the dividend is donated to charity rather than kept.
Common standards include AAOIFI and the Dow Jones Islamic Market screens, which cap interest-bearing debt, cash and non-compliant revenue at around a third of assets. Pick one and stay consistent.