HisabCalc › Banking & money

Mudarabah Profit Share Calculator

Split the profit of a mudarabah venture between the bank and the entrepreneur by the agreed ratio, and account for any loss.

Enter your numbers

Capital provided

Example: 480000

Profit earned

Example: 90000

Bank profit share

Example: 60

Loss to deduct

Example: 2500

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

bankShare = bankSharePercent / 100; bankProfit = profitAmount * bankShare; entrepreneurProfit = profitAmount - bankProfit; bankNet = bankProfit - lossAmount; capitalReturnRate = (profitAmount - lossAmount) / capital * 100

How the calculation works

The calculator applies the agreed profit sharing ratio to the profit the venture actually earned, not to the capital.

It gives the bank its agreed share and hands the rest to the entrepreneur as the reward for managing the business.

Any loss is then deducted from the bank side so you can see a practical net position and the return on the capital provided.

Common mistakes

Applying the sharing ratio to the capital instead of to the profit, which is the single most common mudarabah misunderstanding.
Treating the loss as shared in the same ratio, when in mudarabah the capital provider bears the financial loss.

When to use it

Use it to check the split of a mudarabah deposit or partnership before you sign the profit sharing agreement.
Do not use it as a fixed return calculator, because mudarabah shares a real profit and never guarantees a rate.

Worked example

A capital of 480,000 with 90,000 profit at a 60 percent bank share and a 2,500 loss gives the bank 54,000, the entrepreneur 36,000, a bank net of 51,500 and a return on capital of 18.23 percent.

Bank profit share 54,000.00

Entrepreneur share 36,000.00

Bank net after loss 51,500.00

Return on capital 18.23

Common questions

How is a loss handled in mudarabah?

In classical mudarabah the loss falls on the capital provider and the entrepreneur loses the effort, so deduct the loss from the bank share here as a practical net.

Last updated: 2026-10-04