Mudarabah Calculator

Sharia-compliant profit-sharing investment — investor (rabb-ul-mal) provides capital, manager (mudarib) provides expertise. Profit is split per the agreed ratio. Loss is borne entirely by the investor; manager loses time/effort but not capital.

Inputs

Capital provided (rabb-ul-mal)

Actual profit / loss

Positive = profit · negative = loss (investor absorbs full loss).

Investor share of profit

(decimal)

0.7 = 70% to investor, 30% to manager.

Investment horizon

yrs

Used to compute annualised return.

Result

Investor's profit share

$14,000

Investor share: 70%

Profit split

Capital provided$100,000

Actual profit / loss$20,000

Investor profit$14,000

Manager profit$6,000

Investor total (capital + profit)$114,000

Annualised performance

Years3

Annualised return (CAGR)4.46%

The agreed profit-share ratio cannot be a guaranteed fixed return on capital — that would be riba. The ratio applies only to actual realised profit. Common ratios: 60/40, 70/30, 50/50 — depending on the manager's expertise and the venture's risk profile.

Same deterministic math runs as a Python package, an MCP server for AI agents, and on this page. No API keys, no network — pure stdlib.

$ pip install calcnook $ uvx calcnook-mcp

>>> from calcnook.core.islamic.mudarabah import calculate
>>> r = calculate(100_000, 20_000, 0.70, years=3)
>>> round(r.investor_profit, 2)
14000.0