Stock purification calculator — calculate the amount to donate to purify dividend and interest income from halal stock holdings based on company financial ratios. Published by HalalWallet (halalwallet.us).
Dividend Purification Calculator
Calculate how much of your stock dividends to donate for Shariah purification. Works for individual stocks or your entire portfolio.
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Dividend Details
The non-compliant revenue ratio is the percentage of a company's revenue from haram sources (interest income, prohibited activities). You can find this on halal screening platforms like Zoya or Musaffa.
Purification Amount
Enter your dividend amounts and non-compliant percentages to calculate the purification amount.
What is Dividend Purification?
When a Shariah-compliant stock earns a small portion of revenue from non-permissible sources (e.g., interest income), investors must "purify" that proportion of their dividends by donating it to charity. This keeps your investment returns halal. The purification amount is typically 1–5% of dividends.
Note: Purification amounts are estimates based on the non-compliant revenue ratios you provide. Ratios change quarterly as companies report earnings. Check your screening platform for the latest figures.
Halal Investing Tips
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How Dividend Purification Works
Even Shariah-compliant stocks may earn a small percentage of revenue from non-permissible sources — most commonly interest income on cash holdings. When these companies pay dividends, a proportional amount of your dividend comes from that impure income.
For example, if a stock has 3% non-compliant revenue and you received $1,000 in dividends, you would donate $30 to charity as purification.
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Frequently Asked Questions
What is dividend purification in Islamic investing?
Dividend purification is the process of donating a portion of your investment dividends to charity to "cleanse" the portion that came from non-compliant sources. Even Shariah-compliant stocks may earn small amounts of income from haram activities (like interest). Purification ensures your returns are fully halal.
How do I find the non-compliant revenue percentage?
Halal stock screening platforms like Zoya and Musaffa provide the non-compliant revenue ratio for each stock. This is typically expressed as a percentage of total revenue from impermissible sources. The ratio changes as companies report new financial data.
Is dividend purification obligatory?
The majority of Islamic scholars and institutions (including AAOIFI) consider dividend purification obligatory (wajib) when investing in stocks that have some non-compliant revenue. The purification amount should be donated to charity without expecting reward — it is considered a removal of impurity, not a charitable act (sadaqah).
Where should I donate the purification amount?
According to most scholars, purification donations should be given to general charitable causes (poor, needy, public welfare). Since it is the removal of impure income rather than an act of worship, you do not receive the spiritual reward of sadaqah — but you must still donate it. You cannot use it for personal expenses.
Do I need to purify capital gains too?
Scholars differ on this. Some hold that purification applies only to dividends (income distribution). Others extend it to capital gains proportional to the non-compliant revenue ratio. Consult a qualified scholar for guidance on your specific situation.
What is a typical purification rate?
For most Shariah-compliant stocks, the non-compliant revenue ratio is typically between 0.5% and 5%. Stocks with ratios above 5% are often excluded from halal indexes entirely. The exact ratio depends on the company's financial structure.
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: March 2026
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.