A financial calculator designed to replace traditional interest-based (Riba) models with an ethical, Islamic investment (profit-sharing) framework.
This repository features a localized, simple investment calculator built on Islamic Finance principles. Instead of utilizing standard compound or simple interest formulas—which rely on predetermined risk-free rates—this application models real-world business partnerships.
The calculator provides two distinct modes to calculate financial growth: a projected profit rate model, and a dynamic partnership (profit-sharing) model based on actual business performance.
This project strictly avoids traditional interest (Riba) and is instead grounded in ethical business frameworks:
- Mudarabah (Profit-Sharing): A financial partnership where one party provides capital and the other provides expertise, sharing generated profits based on a pre-agreed ratio.
- Musharakah (Joint Venture): A joint enterprise in which all partners share the profit or loss of the joint business according to their initial capital contribution.
graph TD
A[User Input] --> B{Select Investment Model}
B -->|Mode 1: Expected Profit| C[Mudarabah<br/>Projected Rate]
B -->|Mode 2: Profit-Sharing| D[Musharakah<br/>Joint Venture]
C --> E[Inputs: Capital, Rate, Time]
D --> F[Inputs: Capital, Total Capital, Total Profit]
E --> G[Process: Apply projected annual percentage]
F --> H[Process: Calculate exact equity percentage]
G --> I[Output: Profit & Total Balance]
H --> I
| Variable | Name | Description | Used In |
|---|---|---|---|
p |
Capital Investment | Your individual financial contribution | Both Modes |
pr |
Profit Rate | Expected annual profit rate percentage | Mode 1 |
t |
Time Period | Duration of the investment in years | Mode 1 |
total_investment |
Total Business Capital | The combined capital from all partners | Mode 2 |
tp |
Total Business Profit | The actual monetary profit earned by the business | Mode 2 |
- Profit: Your calculated share of the gains from the investment.
- Total: Your original capital investment plus your generated profit.
Used for forecasting based on a projected annual profit percentage.
- Profit =
p× (pr/ 100) ×t - Total =
p+ Profit
Used for exact dividend calculations based on the percentage of capital owned in a joint venture.
- Profit Share = (
p/total_investment) ×tp - Total =
p+ Profit Share
Version Control & Development Workflow
A terminal view demonstrating the Git version control workflow utilized during the development of this project. It highlights best practices such as configuring developer identity, creating isolated branches for bug fixes, pushing to the remote repository, and performing fast-forward merges back to the main branch.
simple-investment-calculator/
├── CODE_OF_CONDUCT.md # Community guidelines for contributors
├── CONTRIBUTING.md # Instructions for contributing to the project
├── demo1.png # Visual proof of the development/Git workflow
├── investment-profit.sh # Bash script implementation of the calculator
├── islamic_investment.py # Core Python calculation logic and application
├── LICENSE # Apache 2.0 License file
└── README.md # Project documentation
To run the calculator locally, ensure you have Python 3 installed on your machine.
- Clone the repository:
git clone [https://github.com/HAMED-PAYANDA/simple-investment-calculator.git](https://github.com/HAMED-PAYANDA/simple-investment-calculator.git)- Navigate to the directory:
cd simple-investment-calculator- Execute the Python script:
python3 islamic_investment.py- (Optional) Execute the Bash script:
chmod +x investment-profit.sh
./investment-profit.shThis project is licensed under the Apache 2.0 License.
Hamed Payanda
- GitHub: @HAMED-PAYANDA
- Developed to bridge algorithmic logic with ethical financial models.
- Completed as part of the IBM Full-Stack Software Developer Professional.