⚠️ Disclaimer: This calculator provides estimates for educational purposes only. It does not constitute financial, investment, tax, legal, or religious advice. Consult qualified professionals before making any financial or Zakat decisions.View Terms of Use
Halal Math: Islamic Investment Growth Calculator
Plan your halal wealth generation with Halal Math. Project how your investments grow over time while fulfilling your annual Zakat obligations (2.5%), giving you a realistic view of your portfolio's future value.
Investment Input Parameters
8%
Adjust returns for inflation to see real purchasing power
Apply annual Zakat deduction of 2.5% on your investment balance as per Islamic law
Investment Growth Visualization
Investment Breakdown
Principal
Returns
Zakat
Year-by-Year Accumulation Schedule with Zakat Payments
| 1 | $16,000.00 | $1,280.00 | -$432.00 | -$432.00 | $16,848.00 | $16,357.28 |
| 2 | $6,000.00 | $1,827.84 | -$616.90 | -$1,048.90 | $24,058.94 | $22,677.86 |
| 3 | $6,000.00 | $2,404.72 | -$811.59 | -$1,860.49 | $31,652.07 | $28,966.13 |
| 4 | $6,000.00 | $3,012.17 | -$1,016.61 | -$2,877.09 | $39,647.63 | $35,226.40 |
| 5 | $6,000.00 | $3,651.81 | -$1,232.49 | -$4,109.58 | $48,066.95 | $41,462.97 |
| 6 | $6,000.00 | $4,325.36 | -$1,459.81 | -$5,569.39 | $56,932.50 | $47,680.07 |
| 7 | $6,000.00 | $5,034.60 | -$1,699.18 | -$7,268.56 | $66,267.92 | $53,881.89 |
| 8 | $6,000.00 | $5,781.43 | -$1,951.23 | -$9,219.80 | $76,098.12 | $60,072.56 |
| 9 | $6,000.00 | $6,567.85 | -$2,216.65 | -$11,436.45 | $86,449.32 | $66,256.21 |
| 10 | $6,000.00 | $7,395.95 | -$2,496.13 | -$13,932.58 | $97,349.14 | $72,436.90 |
Understanding Islamic Investing & Zakat
Impact of Zakat on Growth
Zakat is an annual 2.5% obligation on eligible wealth. While it is a charitable deduction, this calculator shows how your investment portfolio continues to groweven after this purification, giving you a true picture of your net compound returns.
Halal Investment Principles
Shariah-compliant investing avoids riba (interest),gharar (excessive uncertainty), and haram industries including alcohol, gambling, pork, and conventional financial services. Halal options include Islamic mutual funds, sukuk (Islamic bonds), and Shariah-screened equities.
Projecting Your Net Wealth
Enter your initial investment and contributions to project growth. The key feature is the "Growth with Zakat" model, which automatically deducts 2.5% annually from your compounding balance, showing that your wealth can still grow significantly while being Shariah-compliant.
Compound Growth & Zakat Impact
While compound returns grow your wealth exponentially, paying Zakat annually purifies your earnings and fulfills your religious obligation. This calculator shows both nominal and post-Zakat growth trajectories, helping you plan realistically while staying Shariah-compliant.
Frequently Asked Questions
How is Zakat calculated on investment portfolios?▼
Zakat on investments is calculated at 2.5% of the total market value of your zakatable assets held for one lunar year. This includes the principal amount plus any gains. If you hold stocks, you pay Zakat on the current market value, not the original purchase price. The nisab threshold must be exceeded for Zakat to be obligatory.
Is compound interest halal in Islam?▼
Traditional compound interest (riba) from conventional savings accounts or bonds is considered haram in Islam. However, compound growth from Shariah-compliant investments—such as profit-sharing arrangements, equity investments in halal companies, or sukuk—is permissible. This calculator models growth from halal investment returns, not interest-based products.
Should I calculate Zakat on the full portfolio or just profits?▼
Zakat is calculated on your entire investment portfolio value (principal + profits), not just the gains. According to most Islamic scholars, if you own stocks or mutual funds intended for growth (not active trading), you pay 2.5% Zakat on the current market value of your holdings. Always consult a qualified Islamic scholar for specific rulings.
What is the nisab threshold for Zakat?▼
Nisab is the minimum wealth threshold that makes Zakat obligatory. It equals the value of 85 grams of gold or 595 grams of silver. Most scholars recommend using the silver nisab as it benefits more recipients. As of 2024, this is approximately $400-600 USD depending on current silver prices. If your total zakatable assets exceed nisab for one lunar year, Zakat becomes obligatory.
How does inflation affect my halal investments?▼
Inflation erodes purchasing power over time. While your investment might show nominal growth of 8% annually, if inflation is 3%, your real return is only about 5%. This calculator's "Real Value" feature shows what your future wealth will actually buy in today's terms, helping you set realistic financial goals for your Muslim family's future.