Ethical Finance Tools
Dividend Purification Calculator.
Cleanse Your Returns.
Even Shariah-compliant companies often generate a small percentage of revenue from impermissible sources (like interest on cash reserves). Use this tool to calculate exactly how much of your dividend income must be donated to charity to purify your wealth.
Calculate NowWhy do we purify shares?
According to AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards, a company is considered Shariah-compliant if its non-compliant revenue (e.g., interest income, minor sales of prohibited goods) is less than 5% of its total revenue.
However, this 5% tolerance is a practical concession, not an endorsement. Because a small portion of the company's profits came from impermissible sources, the equivalent portion of any dividends you receive is considered tainted. To ensure your wealth remains Halal, you must "purify" this income by giving that exact percentage away to charity without the intention of receiving spiritual reward (Sawab) for the donation.
Interactive Purification Calculator
Enter your stock holdings below. You can find the "Impure Revenue %" (often called the Purification Ratio) for any stock using the Titan Protect Ethical Screener.
Based on £0.00 total dividends received.
Two Methods of Purification
1. The Dividend Method (Standard)
This is the most common approach and the one used by our calculator. You simply multiply the total dividends you received from a company by its impure revenue ratio. Example: You receive $100 in dividends from Apple. Apple's impure revenue ratio is 2%. You must donate $2 to charity.
2. The Annual Aggregate Method
Used by some scholars for investors who do not receive dividends (e.g., growth stocks). You calculate the company's total impure income per share, multiply by your number of shares, and donate that amount annually regardless of dividend payouts. This requires detailed financial statement analysis.
Common Purification Scenarios
| Scenario | Purification Required? | Reasoning |
|---|---|---|
| I received a cash dividend from a compliant stock. | Yes | Apply the impure revenue ratio to the dividend amount and donate it. |
| I sold a compliant stock for a capital gain (profit). | No | Capital gains reflect market valuation, not direct distribution of the company's tainted revenue. No purification is needed on the capital gain itself. |
| I hold a Shariah-compliant ETF (like SPUS or HLAL). | Yes | The ETF provider publishes a quarterly or annual purification ratio for the entire fund. Apply this ratio to the total ETF dividends you received. |
| I accidentally bought a non-compliant (Haram) stock and it paid a dividend. | 100% | You must sell the stock immediately and donate 100% of the dividends received, as the entire investment was impermissible. |
Frequently Asked Questions
You can find this ratio using the Titan Protect Ethical Screener. For Shariah-compliant ETFs, the fund manager (e.g., SP Funds, Wahed) will publish the purification ratio on their website, usually in their quarterly reports or prospectus.
Purification money must be given to the poor and needy or to general charitable causes (like disaster relief, digging wells, or feeding the hungry). It cannot be given to build a mosque, and you cannot intend to receive spiritual reward (Sawab) for the donation, as you are simply disposing of tainted wealth that never truly belonged to you.
No. Zakat and purification are two entirely separate obligations. You purify the specific tainted portion of your dividend income first. Then, you calculate your 2.5% Zakat on your total remaining Zakatable wealth (which includes the pure dividends you kept) on your Zakat anniversary date.
Don't guess your purification ratio.
Our screener breaks down the exact revenue streams and interest income for over 13,500 global stocks, giving you the precise purification ratio you need.
Check a Stock's Ratio Now