Islamic Finance Tool
Halal Investment Screener
Check whether a stock or company meets common Islamic screening criteria. Enter the figures from the company's latest annual report, and the screener tests the business activity screen and the standard financial ratio screens used by AAOIFI-style methodologies.
Company Information
Enter the financial data from the company's latest annual report or a stock screening website.
Business Activity Screen
Does the company earn significant revenue (more than 5%) from any of these prohibited activities?
PASS — Business activity screen passed
Financial Ratio Screens
Enter amounts in any currency — the screens compare ratios, so units cancel out. Leave a screen's fields blank if you cannot find the data; it will simply remain unassessed.
Debt
Total debt must be less than 33% of market capitalization (or total assets).
Cash & interest-bearing securities
Cash and interest-bearing securities must be less than 33% of market capitalization (or total assets).
Reuses the market capitalization entered in the Debt screen above.
Interest income
Interest income must be less than 5% of total revenue.
Accounts Receivable Screen
Accounts receivable must be less than 49% of total assets (some scholars use 45%).
Total assets entered here are also used as the fallback denominator for the debt and cash screens when no market capitalization is provided.
Screening Result
HALAL ✅
This stock meets all Islamic screening criteria.
Purification (tathir): if you hold stocks that earn a small amount of interest income, many scholars advise donating that proportion of your dividends to charity (purification/tathir).
Understanding Halal Investing
Two types of screens. Sharia screening always combines a business activity screen (what the company does — no alcohol, gambling, pork, conventional finance, and so on) with financial ratio screens (how the company is financed — limits on debt, interest-bearing cash, and interest income). A company must pass both to be considered halal.
The 33% debt threshold. The widely used limit that total debt must stay below 33% of market capitalization (or total assets) comes from the AAOIFI standard, and most major screening providers apply a threshold in this range.
Different organizations, slightly different thresholds. AAOIFI, the Dow Jones Islamic Market Index (DJIM), S&P, and MSCI each publish their own methodologies. They agree on the broad principles but differ on details — for example, some use 33% for debt while others use 30% or 33⅓%, and the accounts receivable screen ranges from 33% to 49% (some scholars prefer 45%). When a stock fails one provider's screen narrowly, check how another methodology treats it.
Common halal investment options. If screening individual stocks feels daunting, ready-made options include Islamic index funds and ETFs that screen holdings for you, sukuk (Islamic bonds backed by real assets), halal ETFs, and direct real estate.
Purification (tathir). Even a screened-halal company may hold a small amount of interest-bearing deposits or earn minor non-compliant income. Many scholars advise calculating that non-compliant proportion and donating the same proportion of your dividends or capital gains to charity. This cleanses your return without you benefiting from the impermissible portion.
This tool provides estimates only and is not financial or religious advice. Screening methodologies differ, and scholars differ on borderline cases. Consult a qualified scholar for rulings specific to your situation and school of thought, and a licensed financial adviser before making investment decisions.