Halal Stock Screening & Purification Calculator
Screen stocks for Sharia compliance using AAOIFI & MSCI financial ratios, and calculate exact dividend and capital gain purification (Tathir) donation amounts.
Interactive Halal Stock Screening & Purification Calculator Workspace
AAOIFI Sharia Standard No. 21 Financial Screening
To be Halal for investment, a company's core operations must be permissible, and its financial ratios must meet three benchmarks: Debt < 33% of Market Cap, Cash & Securities < 33% of Market Cap, and Impermissible / Interest Income < 5% of Total Revenue. Incidental non-compliant revenue must be purified by donating the corresponding dividend fraction to charity.
Stock Passes AAOIFI Sharia Compliance Screening
All balance sheet ratios and revenue thresholds are within permissible limits.
Company Financial Metrics (From 10-K / Quarterly Report)
Dividend Purification Breakdown (Tathir)
Mathematical Formula & Variables
Purification Amount = Total Dividend Received ($) × (Non-Permissible / Impermissible Revenue Percentage)Under AAOIFI Sharia Standard No. 21, companies with permissible core operations that earn incidental non-compliant income (such as interest on cash deposits) must purify dividend distributions by donating the non-permissible percentage to charity without claiming personal spiritual reward.
Variable Definitions
| Symbol | Description |
|---|---|
| Debt Ratio (Max 33%) | Total Interest-Bearing Debt divided by Trailing 12-Month Market Capitalization or Total Assets. |
| Cash & Interest Ratio (Max 33%) | Interest-bearing cash deposits and short-term securities divided by Market Capitalization. |
| Impure Revenue (Max 5%) | Total non-permissible / interest income divided by Total Gross Revenue. |
| Total Dividends Received | Total gross cash dividend payout received from the stock or ETF portfolio. |
| Purification Payable | Dollar value of dividend income to be cleansed and donated to charity. |
How to Use the Halal Stock Screening & Purification Calculator
- Enter the company’s key financial metrics: Total Market Cap, Total Interest-Bearing Debt, Cash & Short-term Investments, and Gross Revenue.
- Input the non-permissible revenue amount (such as interest earned on corporate treasury deposits or non-core conventional finance).
- The screener automatically evaluates AAOIFI 33% debt, 33% cash, and 5% impure revenue benchmarks with pass/fail indicators.
- Enter your total dividend payout received from holding the stock to calculate the exact purification dollar amount required to be donated to charity.
- Optionally calculate capital gains purification based on the percentage of interest-bearing assets held during your investment holding period.
Halal Stock Screening & Dividend Purification Example
Scenario Context: An investor owns shares in a technology company with $10B Market Cap, $1.5B Debt (15%), $2.0B Cash (20%), $5B Revenue, and $100M in treasury interest income (2.0% of revenue). The investor received $2,500 in dividends.
Frequently Asked Questions
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