How Much Profit Is Allowed in Islam?

Muslims often question the profit limit. There is no profit limit in Islam. However, one must not cheat in business dealings.
a person sitting at a desk with a calculator and a notebook
Photo: Jakub Żerdzicki

There is no exact profit limit in Islam.

SUMMARY

  • Buying at unfair prices is a sin in Islam.

Islam views commerce as a valid way to earn. It promotes this within ethical boundaries. These rules aim to ensure fair play and stop exploitation in trade.

    How Much Profit Is Allowed?

    In Islam, there’s no exact profit limit for a trader. Yet, profit mustn’t be made by deceiving. This is especially true if the goods’ value is well-known.  

    Evidence

    1. The Prophet Muhammad’s (peace be upon him) teachings guide us here. He warned against buying from traders at unfairly low prices. Such acts are deceitful. 
    2. A Hadith in Sahih Muslim (1519) shows Islam allows traders to cancel deals if cheated. Muslims must respect their peers’ rights.  
    Hadith on business dealings

    Bottom Line

    Islamic trade ethics focus on balance and fairness. Traders should be relaxed in their dealings. They should not chase excessive profits. The Holy Prophet (peace be upon him) taught us to be patient and fair in business. This sets the bar for ethical trade. 

    Allah knows best.

    Got a question? Feel free to ask mufti and get quick answers.

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