Zakat
2.5% on wealth above nisabObligatory annual charity calculated at 2.5% on net wealth exceeding the nisab threshold: $7,480 (gold standard at 87.48g) or $643 (silver standard at 612.36g). Deductible debts and zakatable assets vary by school.
Islamic Finance Calculator
Calculate Zakat, Murabaha, Musharaka, Mudarabah, Ijarah and Sukuk instantly. Shariah-compliant calculations across all six schools of jurisprudence.
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Free calculatorShariah compliant6 Schools44 CountriesUpdated 2026No data stored
This calculator provides estimates only. Consult a qualified Islamic scholar or Shariah advisor for binding rulings. We do not store any personal financial data.
What Is Islamic Finance?
Islamic finance is a system of banking and financial services that operates in accordance with Shariah (Islamic law). It is built on the prohibition of riba (interest), gharar (excessive uncertainty), and maysir (gambling). Instead of lending money at interest, Islamic financial institutions use profit-sharing partnerships, cost-plus sales, and lease-based structures where both risk and reward are shared between parties.
The global Islamic finance industry exceeds $4 trillion in assets and operates across more than 80 countries. Six schools of Islamic jurisprudence (Hanafi, Maliki, Shafi’i, Hanbali, Ja’fari, and Ibadhi) each interpret Shariah principles with distinct rulings on debt deduction, nisab thresholds, and permissible financial instruments.
Unlike conventional finance, every Islamic financial contract must be backed by a real asset or service. Speculative derivatives, interest-bearing loans, and investments in prohibited industries (alcohol, gambling, tobacco) are excluded. This asset-backed requirement means Islamic finance remained largely insulated from the 2008 credit crisis caused by synthetic debt instruments.
6 Schools of Jurisprudence
Hanafi, Maliki, Shafi’i, Hanbali, Ja’fari, Ibadhi
No Interest (Riba)
All returns must come from real economic activity, not lending
Profit-Loss Sharing
Risk is shared between parties, with no guaranteed fixed returns
Asset-Backed Transactions
Every financial contract must be tied to a tangible asset or service
No Excessive Uncertainty
Gharar (ambiguity) and Maysir (gambling) are prohibited
Shariah Supervisory Boards
Independent scholars certify each product’s compliance
Islamic Financial Instruments at a Glance
Six core Shariah-compliant instruments, each with distinct rules on risk sharing, ownership, and permissible profit structures.
Islamic Inheritance
Faraid distributionIslamic inheritance (faraid) distribution engine with Quranic fixed shares, residuary heirs, blocking rules, awl/radd adjustments, and school-specific variations across all six schools of jurisprudence.
Islamic Mortgage
Halal home financingCompare three Shariah-compliant home financing models: Murabaha (cost-plus), Ijara (lease-to-own), and Diminishing Musharakah (declining partnership), with school-specific rulings and amortization schedules.
Islamic Loan
Halal car & personal loansShariah-compliant car financing and personal loans using Murabaha (cost-plus) structure. The bank purchases the asset and resells it at a fixed markup, with no interest, no compounding, and full payment certainty.
Islamic Investment
Halal investing guideComplete guide to Shariah-compliant investing: halal sector screening, prohibited industries, Sukuk certificates, Wakala deposits, and Islamic fixed deposits with profit-sharing ratios across all six schools.
Sukuk
Islamic investment certificatesAsset-backed securities that represent proportional ownership in an underlying asset. Unlike conventional bonds, Sukuk holders share in the asset’s returns rather than receiving interest; distributions are typically semi-annual.
Schools of Islamic Jurisprudence & Their Zakat Rules
Each school applies distinct Shariah rulings on nisab thresholds, debt deductions, and zakatable assets, affecting how much Zakat you owe.
Hanafi
The largest Sunni school of jurisprudence, known for its flexibility and use of juristic preference (istihsan) to reach equitable rulings.
Silver nisab standard
All debts deductible
Jewelry zakatable
PakistanBangladeshAfghanistanSyria+6 more
Maliki
Founded by Imam Malik in Medina, this school places great weight on the practices of the people of Medina as a living transmission of prophetic tradition.
Gold nisab standard
Partial debt deduction
Jewelry exempt
EgyptMoroccoAlgeriaTunisia+8 more
Shafi’i
Systematized by Imam al-Shafi’i, who formalized the principles of Islamic jurisprudence (usul al-fiqh).
Gold nisab standard
Annual debts only
Jewelry exempt
IndonesiaBruneiJordanPalestine+5 more
Hanbali
The most textualist of the four Sunni schools, founded by Imam Ahmad ibn Hanbal who prioritized Quran and Hadith above all else and minimised the role of personal reasoning.
Gold nisab standard
Debts deducted if below nisab
Jewelry exempt
Saudi ArabiaQatar
Ja’fari
The primary school of Shia Islam, named after the sixth Shia Imam.
Gold nisab standard
All debts deductible
Jewelry exempt
Khums (20% on surplus) applies
Iran
Ibadhi
The oldest surviving Islamic school of jurisprudence, predating the four major Sunni schools.
Gold nisab standard
Partial debt deduction
Jewelry exempt
Oman
Popular Islamic Finance Calculators
Shariah-compliant calculations for Zakat, Murabaha, Musharaka, Mudarabah, Ijarah, and Sukuk, with school-specific rules.
Zakat Calculator
Calculate obligatory charity at 2.5% on net wealth above nisab, covering gold (87.48g threshold), silver (612.36g), cash, stocks, crypto, and business inventory. School-specific debt deduction rules applied automatically.
Inheritance Calculator
Islamic inheritance (faraid) distribution engine with Quranic fixed shares, residuary heirs, blocking rules, awl/radd adjustments, and school-specific variations across all six schools of jurisprudence.
Islamic Mortgage Calculator
Compare three Shariah-compliant home financing models: Murabaha (cost-plus), Ijara (lease-to-own), and Diminishing Musharakah (declining partnership). Full amortization schedules across all six schools.
Islamic Loan Calculator
Halal car financing and personal loan calculator using Murabaha cost-plus structure. Fixed monthly payments, no compounding interest, full amortization schedule across all six schools.
Islamic Investment Guide
Comprehensive guide to halal investing: Shariah screening, sector analysis, return purification, and links to sukuk, wakala deposit, and Islamic fixed deposit calculators.
Sukuk Calculator
Asset-backed Islamic investment certificates with periodic distributions. Calculate total return, effective yield, and per-period distributions for semi-annual or annual Sukuk structures.
Islamic Finance Guides
Learn the foundations of Shariah-compliant finance with our comprehensive guide library.
Islamic Finance Basics
Learn the core principles of Islamic finance including the prohibition of riba, risk-sharing models, and how Shariah-compliant banking differs from conventional finance.
$4.5T
Industry
80+
Countries
10%
Growth
What is Riba?
Understand why interest (riba) is prohibited in Islam, the different types of riba, and how Islamic banks offer profitable alternatives without charging interest.
$3.9T
Industry
75+
Countries
12%
Growth
What is Zakat?
Discover how zakat works as the third pillar of Islam — who must pay, nisab thresholds for gold and silver, and step-by-step calculation across all six schools of jurisprudence.
$76B
Industry
57
Countries
8%
Growth
Is Mortgage Halal?
Explore whether conventional mortgages are permissible and compare halal alternatives like Murabaha, Diminishing Musharakah, and Ijara home financing structures.
$760B
Industry
35+
Countries
15%
Growth
What is Sukuk?
Sukuk are Islamic investment certificates that provide returns through asset-backed ownership rather than interest. Learn how they work, types of sukuk, and why they are the fastest-growing segment in Islamic capital markets.
$838B
Industry
30+
Countries
14%
Growth
What is Takaful?
Takaful is Islamic cooperative insurance based on mutual assistance. Understand how participants pool contributions, the role of the takaful operator, and how surplus is distributed back to members.
$35B
Industry
45+
Countries
12%
Growth