Islamic Deposit & Savings Calculator (Mudarabah)
The Islamic Deposit Calculator is designed to help you forecast returns and profits from Sharia-compliant savings accounts and investment deposits that operate on the "Mudarabah" principle. In a Mudarabah contract, you (the capital provider or Rab al-Maal) supply the funds, while the bank (the manager or Mudarib) invests it in Halal projects. The resulting profits are then shared based on a pre-agreed ratio.
Examples & Use Cases
- Annual Investment Deposit: You deposit $50,000 in an Islamic bank. The bank announces an expected investment return rate of 8% annually, with a customer profit-sharing ratio of 60%. Entering these numbers, the gross profit is $4,000. Your net profit is $2,400, and the bank takes $1,600. Total expected balance at year-end: $52,400.
- Short-term Deposit (6 Months): You invest $100,000 with a 6% expected rate and a 50% customer share, but the duration is 0.5 years (6 months). Your expected net profit will be $1,500.
- Comparing Islamic Banks: Bank A offers a high expected rate (10%) but a low customer share (40%). Bank B offers a lower rate (7%) but a higher customer share (80%). Use this tool to calculate exactly which offer yields a higher net profit for your deposit.
Sharia & Financial Disclaimer
In Islamic banking, the profit rate is an "Expected Rate" and is never guaranteed or fixed as it is in conventional interest-based (Riba) banking. Actual profits may fluctuate based on the performance of the bank's investment portfolio. This calculator provides estimations based on the bank's projected figures to assist your financial planning.