Mudarabah Calculator
Calculate profit sharing between investor and entrepreneur in Islamic Mudarabah partnership.
Islamic Profit Sharing Calculator
Calculate fair profit distribution in Mudarabah partnership
Amount provided by investor (Rab-ul-Maal)
Expected annual return from business
Duration of partnership
Rab-ul-Maal's profit share
Mudarib's profit share (auto-calculated)
Total Expected Profit
$0
Based on expected return rate
Investor's Share
$0
Rab-ul-Maal profit
Entrepreneur's Share
$0
Mudarib profit
Total Return
$0
Capital + Investor Profit
Investor (Rab-ul-Maal)
Capital Provided
$0
Profit Share Ratio
60%
Profit Amount
$0
Total Return
$0
Effective Return Rate
0%
Entrepreneur (Mudarib)
Capital Provided
$0 (Labor/Expertise)
Profit Share Ratio
40%
Profit Amount
$0
Risk
Time & Effort Only
Profit & Loss Scenarios
Compare Different Profit Sharing Ratios
Monthly Profit Projection
| Month | Cumulative Profit | Investor Share | Entrepreneur Share | Investor Balance |
|---|
Understanding Mudarabah
What is Mudarabah?
Mudarabah is a profit-sharing Islamic finance contract between two parties: the capital provider (Rab-ul-Maal) and the entrepreneur (Mudarib). The investor provides 100% of the capital while the entrepreneur manages the business using their expertise and labor.
Profit Distribution
- Profits shared according to pre-agreed ratio
- Ratio must be determined at contract start
- Cannot be a fixed amount (must be percentage)
- Common ratios: 60:40, 70:30, 50:50
Loss Bearing
- Financial losses borne by investor only
- Entrepreneur loses time and effort invested
- Exception: Mudarib negligence or misconduct
- This makes it Shariah-compliant (no riba)
Types of Mudarabah
- Mudarabah Muqayyadah: Restricted to specific business
- Mudarabah Mutlaqah: Unrestricted, entrepreneur decides
- Both types must avoid haram activities
- Used in Islamic banking deposits