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Partnership profit sharing calculator
Share a construction or property project's profit between partners by the money each put in and for how long, by money alone, or by agreed shares, with a working partner's cut off the top, each share in rupees and the working shown.
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Share your profit
List the partners with the money each put in and when, choose how to share, and give the sale price and costs or the profit.
Each partner's share
- Asif25.6% of the rest, and Rs 600,000 for the work
- Rs 1,984,615
- Bilal51.3% of the rest
- Rs 2,769,231
- Kamran23.1% of the rest
- Rs 1,246,154
- Profit
- Rs 6,000,000
- Money put in
- Rs 2.1 croreby 3 partners
- Profit on the sale
- Rs 60 lakhRs 2.7 crore less Rs 2.1 crore
- Return on money
- 28.6%On everything put in
- Off the top
- Rs 6 lakhTo Asif for the work
Shares are rounded to the rupee and add up exactly. A way to work out the figures, not a fatwa or legal advice: follow your partnership deed.
The working
How the shares were worked out
A profit of Rs 6,000,000 (60 lakh), Rs 600,000 off the top to Asif for the work and the rest shared by money and months.
| Partner | Money in (Rs) | Money × months | Share of the rest | For the work (Rs) | Profit (Rs) | Money and profit (Rs) | Return |
|---|---|---|---|---|---|---|---|
| Asif | 5,000,000 | 60,000,000 | 25.64% | 600,000 | 1,984,615 | 6,984,615 | 39.7% |
| Bilal | 10,000,000 | 120,000,000 | 51.28% | 0 | 2,769,231 | 12,769,231 | 27.7% |
| Kamran | 6,000,000 | 54,000,000 | 23.08% | 0 | 1,246,154 | 7,246,154 | 20.8% |
| Total | 21,000,000 | 234,000,000 | 100% | 600,000 | 6,000,000 | 27,000,000 | 28.6% |
| Partner | Money in (Rs) | From | To | Months | Money × months |
|---|---|---|---|---|---|
| Asif | 5,000,000 | 1 Sep 2025 | 31 Aug 2026 | 12 | 60,000,000 |
| Bilal | 10,000,000 | 1 Sep 2025 | 31 Aug 2026 | 12 | 120,000,000 |
| Kamran | 6,000,000 | 1 Dec 2025 | 31 Aug 2026 | 9 | 54,000,000 |
| Total | 21,000,000 | 234,000,000 |
Each sum weighs its money times the months it was in; a partner's share is his weight over the total. Money still in counts to 31 Aug 2026.
How it is worked out
Three partners, one house, one profit
Three partners build a house to sell. Asif, a builder, puts in Rs 50 lakh and runs the site; Bilal puts in Rs 1 crore; both start on 1 September 2025. Kamran joins with Rs 60 lakh on 1 December 2025. The house sells on 31 August 2026 for Rs 2.7 crore against Rs 2.1 crore spent, a profit of Rs 60 lakh.
They agreed that Asif takes 10% of the profit for running the job, Rs 600,000, and that the rest is shared by money and time. Each sum counts for the months it was in: Asif's Rs 50 lakh for 12 months is 600 lakh-months, Bilal's 1,200 and Kamran's Rs 60 lakh for 9 months 540, 2,340 in all. Asif's share of the Rs 54 lakh left is 600 ÷ 2,340 = 25.6%, Rs 13.85 lakh, so he takes Rs 19.85 lakh in all; Bilal takes Rs 27.69 lakh and Kamran Rs 12.46 lakh.
Shared by money alone, Kamran's Rs 60 lakh would take 28.6% of the rest instead of 23.1%, as if it had been in from the start: that is the difference time makes. Counting days instead of months changes the answer only a little here (23.1% for Kamran), because every sum went in on the first of a month; days matter when money goes in part way through one.
Months count every whole calendar month as one and a part month by its days: 15 December to 31 August is 8 months and 17 of December's 31 days. Days count every day, the first and the last included. Money that came out early counts until the day it came out, and a partner who put money in more than once has a row for each sum under the same name. Shares are rounded to the rupee so that they add up exactly to the profit.
Musharakah
Profit by agreement, loss by capital
A partnership in which each partner puts money into a business and shares its result is musharakah. As Mufti Muhammad Taqi Usmani sets out its rules in An Introduction to Islamic Finance, the share of profit must be agreed when the partnership is made, as a proportion of the profit actually earned. A fixed sum for any partner, or a rate on the money he put in, is not allowed; anything a partner draws on account is settled against his real share at the end.
Whether a partner's share of profit may differ from his share of the capital is where the schools differ. Imam Malik and Imam Shafi'i hold that it must match his share of the capital, which is what sharing by money gives. Imam Ahmad allows any ratio the partners agree. Imam Abu Hanifah allows a different ratio too, except that a partner who has stipulated that he will not work, a sleeping partner, may not take a larger share of profit than his share of capital. So a working partner may be given a bigger share of the profit for his work, which is what the share of profit off the top does here.
On loss the jurists agree: each partner bears it exactly in proportion to the capital he put in, and a condition otherwise is void. Profit is by agreement, loss by capital. That is why the calculator shares a loss by the money each partner put in (and, under money and time, by how long it was in), never by agreed shares, and why a partner who put in only work loses his effort but no money.
Sharing by money and time follows the daily products method Mufti Taqi Usmani describes for pooled accounts, in which each rupee earns for the days it was in. Some scholars object to it; he answers their objection but leaves the method to further study by the experts, so agree it in writing before the money goes in. Where a partner puts in a plot or materials instead of cash, Imam Malik counts it at its market value on the day the partnership starts, a view Usmani takes as workable, while other schools restrict it.
This is a summary for working out figures, not a fatwa and not legal advice. Ask a qualified scholar about your own agreement, and a lawyer about the deed.
The law
What the Partnership Act 1932 says
In Pakistani law a partnership is the relation between people who have agreed to share the profits of a business (section 4 of the Partnership Act 1932), and it can be made for a single venture, such as building one house to sell (section 8).
What the partners agree governs. Where they have not agreed, section 13 fills the gap: they share profit equally and bear losses equally, whatever each put in, and no partner is paid for working in the business. A partner who pays in more than the capital he agreed to is owed 6% a year on the extra. So partners who mean to share by money, by time or by agreed shares, or to pay a working partner, should say so in a written deed. For equal shares, choose agreed shares and give each partner the same figure.
The partners of an unregistered firm cannot sue each other or the firm to enforce a right under their contract, though a suit to dissolve the firm, or for the accounts of a dissolved one, stays open (section 69). Registering the firm with the Registrar of Firms keeps every remedy open.
Terms
Words in a partnership deed
- Musharakah
- A partnership in which every partner puts in capital and shares the result: profit in the proportions agreed at the start, loss in proportion to capital.
- Mudarabah
- A partnership of money and work: one side puts in the money, the other runs the business. Profit is shared as agreed; a loss falls on the money, and the working side loses his effort.
- Working and sleeping partner
- A working partner runs the business, such as the builder who runs the site. A sleeping partner puts in money but does not work in it.
- Capital-months
- Money times the months it was in: Rs 10 lakh for 6 months is 60 lakh-months, the same weight as Rs 5 lakh for 12. Counted in days, the same idea is the daily product.
- Profit sharing ratio
- Each partner's part of the profit, written as a ratio such as 10:20:9 or as percentages that add up to 100.
- Partnership deed
- The written agreement between partners: who puts in what and when, how profit and loss are shared, what a working partner is paid, and how the partnership ends.
Questions
Partnership profit questions
Still have a question?
Ask our team during Pakistan business hours, in English or Urdu.
+92 333 2466662Chat on WhatsAppHow do you divide profit between partners based on investment and time?
Multiply each partner's money by the months it was in, add the results, and give each partner his result over the total. In the example, Asif's Rs 50 lakh for 12 months is 600 lakh-months, Bilal's Rs 1 crore for 12 months 1,200 and Kamran's Rs 60 lakh for 9 months 540: 2,340 in all, so they take 25.6%, 51.3% and 23.1% of the profit shared. For exact dates, count days instead of months.
How do I calculate the profit sharing ratio?
Write each partner's weight, divide each by the total and multiply by 100. By money alone the example's Rs 50 lakh, Rs 1 crore and Rs 60 lakh are 50:100:60, which is 23.8%, 47.6% and 28.6%. By money and time they are 600:1,200:540, which is 25.6%, 51.3% and 23.1%. By agreement it is whatever the partners wrote down, such as 30:45:25.
How much should a working partner get?
Whatever the partners agree before they start. Under the musharakah rules it should be a share of the profit, not a fixed sum: Asif's 10% for running the site is Rs 600,000 on a profit of Rs 60 lakh, and nothing if the house makes a loss. The Partnership Act 1932 pays a partner nothing for working in the business unless the partners agree otherwise (section 13), so a salary has to be written into the deed.
How is a loss shared between partners?
By capital. Under the musharakah rules every partner bears a loss in proportion to the money he put in, whatever share of profit was agreed. If the example's house sold for Rs 2 crore against Rs 2.1 crore spent, the Rs 10 lakh loss shared by money and time comes to Asif Rs 2.56 lakh, Bilal Rs 5.13 lakh and Kamran Rs 2.31 lakh, and Asif's 10% for his work comes to nothing. The Partnership Act lets partners agree otherwise, and shares a loss equally where they have not.
What if the partners never agreed how to share the profit?
Under the Partnership Act 1932 they share profit and loss equally, whatever each put in, and no partner is paid for his work (section 13). Under the musharakah rules the proportion of profit must be agreed at the start, or the partnership is not valid, so settle it with a scholar's help before the money is paid out. Either way, agree it in writing before the next project.
Can profit be shared in a different ratio from the investment in Islam?
The schools differ. Imam Malik and Imam Shafi'i require each partner's profit share to match his capital share. Imam Ahmad allows any ratio the partners agree, and Imam Abu Hanifah allows it too, except that a sleeping partner may not take more than his capital share. On loss all agree: it follows capital. Choose the method that matches your agreement, and ask a scholar if you are unsure.
One partner gave the plot instead of cash. How is it counted?
Enter the plot at its market value on the day the partnership started, dated that day, as that partner's money. That is Imam Malik's view, which Mufti Taqi Usmani takes as workable; other schools restrict capital to cash, so ask a scholar. Agree the value in writing before building starts, because a later value would hand the plot's rise or fall to one partner.
Keep every partner's money in one place
Smart Construction keeps each partner's money and the project's accounts in one place, so when the profit is shared every partner is looking at the same figures.
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