🤝 Islamic Mudaraba Profit Calculator
📊 Calculate profit distribution between the investor (Rab al-Mal) and the manager (Mudarib) in Islamic Mudaraba contracts
❓ FAQ About Mudaraba
Mudaraba is an Islamic investment partnership where the investor (Rab al-Mal) provides the capital while the manager (Mudarib) contributes labor, expertise, and management. Profits are shared according to a pre-agreed ratio, while losses fall on the investor alone unless the manager is negligent.
Profits are distributed according to the ratio agreed upon in the contract. For example, 70% for the investor and 30% for the manager. The ratio must be a percentage, not a fixed amount. It is not permissible to assign a fixed profit amount to either party.
In Mudaraba, one party provides capital and the other provides labor. In Musharaka, both parties contribute capital and work together. In Mudaraba, losses fall on the investor only, whereas in Musharaka, losses are shared proportionally to capital contributions.
Yes, Mudaraba is permissible in Islamic law and is one of the oldest forms of Islamic financing. Prophet Muhammad (PBUH) practiced it with Lady Khadijah before his prophethood. It is approved by Shariah supervisory boards of Islamic banks worldwide.
There are two types: Unrestricted Mudaraba (Al-Mutlaqah) where the manager has full freedom to invest without restrictions, and Restricted Mudaraba (Al-Muqayyadah) where the investor specifies the type of business, location, or timeframe for the investment.