Purification calculator

What purification is

A company can pass a Shariah screen and still earn a small part of its income in ways that are not permissible, most often interest on its cash. AAOIFI allows such stocks while that income stays under 5% of revenue, on the condition that the investor gives away the matching share of what they receive.

• Dividends: the amount to give is the dividend you received × the company's impermissible income as a share of its revenue. With $200 of dividends from a company earning 2% of its revenue from interest, you give $4.
• Capital gains: many scholars, AAOIFI among them, apply purification to dividends only. Others ask for the same percentage of a capital gain when you sell. Tick the box to include it.
• Where it goes: to charity, without expecting reward, and it does not count as zakat. It cannot be spent on yourself, even indirectly.
• Finding the percentage: it is in the company's income statement as interest and other impermissible income, and specialist screening services publish it per company. A compliant company is under 5%, so 5% is the most you would owe; that is the default here.
• Funds: halal ETFs and funds often publish their purification percentage each year.

This calculator is a guide, not a fatwa: check with a scholar you trust. See also the zakat on stocks calculator, the halal stock screen and halal ETFs.