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Halal Investment Return Calculator | Sharia Portfolio Growth

A halal investment return calculator compounds an initial amount and monthly contributions at an expected annual return using FV = P(1+r/12)^n + M×((1+r/12)^n − 1)/(r/12). Fund presets map to typical Sharia-compliant profile returns: Islamic equity ETFs, sukuk, balanced 60/40, halal REITs and gold.

Last updated: September 2026 · Free · No sign-up required

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Wahed, Amana, HSBC Islamic funds historic returns range 5-10%/yr.

1-40 years. Longer = more compounding.

Results

Enter values above and click Calculate to see your result instantly.

Quick reference

Typical long-run return assumptions by profile:

ProfileExpected p.a.Risk
Islamic equity ETF7–9%High
Balanced 60/405–7%Medium
Sukuk3–5%Low
Halal REIT6–8%Medium
Gold2–5%Medium

mosque Why it's halal

Growth comes from owned assets — screened equities, leases (sukuk), property and gold — not from lending at interest.

pie_chart Balanced 60/40

Sixty percent Islamic equity with forty percent sukuk historically dampened drawdowns while keeping most of the long-run return.

event_repeat Monthly compounding

Contributing $250/month at 7% adds about $129k over 20 years — more than the lump sum generates from $10k.

verified Screening basics

AAOIFI screens exclude conventional banks, insurers, alcohol, gambling and arms, and cap interest-bearing debt.

lightbulb A real example — $10k + $250/month at 7%

$10,000 initial, $250 monthly, 20 years, balanced Islamic equity profile.

Result: Projected end value ≈ $167,400 — $70,000 contributed plus ~$97,400 growth.

What this means: Cut the return assumption to 5% and the end value is ~$128,000. The plan still works — sensitivity testing is the point.

Formula & methodology

Formula: FV = P(1+i)^n + M × [((1+i)^n − 1) ÷ i], i = annual rate ÷ 12, n = months

The compound growth math

Future value adds two pieces: the lump sum compounding from day one, and the monthly contributions compounding as an annuity: FV = P(1+i)^n + M[((1+i)^n − 1)/i] with the monthly rate i = r/12 and n the number of months.

Example: $10,000 initial plus $250/month at 7% for 20 years → lump sum grows to $38,197, contributions to $129,196, total ≈ $167,393 against $70,000 contributed — about $97,400 of growth.

Sharia note: expected returns assume halal asset profiles (screened equity, sukuk, REITs, gold). Returns are never guaranteed; riba-based bonds and interest accounts are outside this model by design.

Frequently asked questions

Is compound investment growth halal?
Yes, when growth comes from real assets. Compounding returns from screened equities, sukuk leases or rental property is permissible; interest (riba) from lending is not.
What return should I assume for sukuk?
Long-run sukuk returns historically track 3–5% annually. Islamic equity ETFs have averaged 7–9% over long windows with far more volatility.
How much could $250 a month grow in 20 years?
At 7% compounded monthly, $250/month contributes $60,000 and grows to about $129,200 — nearly 2.2× the money you put in.
Does zakat apply to these investments?
Generally yes — zakat is due annually on the market value of equity and REIT holdings (at your madhab's rate) once above nisab; use the zakat calculator to size it.

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