Morabaha

First Form:

Arboon or Margin (if 20%) LPO Amount x 20/100

Bank Financing Bank Purchase – Margin

Bank Gross Profit Bank Sale – Bank Financing

Bank Net Profit Bank Sale – Bank Financing – Arboon

Second Form:

LPO Amount+ Freight+ Insurance+ Storage + Tax +

Bank Purchase
Selling Expense

Arboon or Margin (if 10%) LPO Amount x 10/100

Bank Financing Bank Purchase – Margin

Gross Profit Sale Price (Morahib) – Bank Financing

Net Profit Bank Sale – Bank Financing – Arboon

Morahib Profit Share Net Profit x Morahib profit sharing ratio (%)

Bank Profit Share Net Profit x Bank profit sharing ratio (%)

Cost plus Morabaha (Morabaha + Modaraba):

MORABAHA
Arboon or Margin (if 20%) LPO Amount x 20/100
LPO Amount – Arboon +
Bank Purchase
Custom Duty + Transport + Warehousing + Selling
(Total Cost of Commodity)
Expense + Macadam Fee
Bank Financing Bank Purchase – Margin

Net Profit or Loss Sum of Sale of Stock by Morahib – Bank Financing

Morahib Profit Share Net Profit x Morahib profit sharing ratio (%)
Bank Profit Share
Net Profit x Bank profit sharing ratio (%)
(Bank Net Profit)
MODARABA
 Investors Profit Share Bank Profit Share x Investors Profit share ratio

Return on Investment Bank Profit Share – Investors Profit share

Investment by A + Investment by B + Investment by C

Amount of Investment
Investment by D + Investment by E

Return on Investment x Investor ‘A’ profit

Profit Earned by Investor ‘A’
sharing ratio (%)

Profit Earned by Investor ‘A’ x 100

Share Capital of Investor ‘A’
÷ Total Capital Invested by ‘A’

Note: Bank is Morahib in Modaraba transaction and Investors are Rab-al-Maal.

IJARA

Cost Price of Equipment Market Price + Insurance + Registration fee

Arboon (if 20%) Market Price x 20/100

Ijara Financing Amount Cost Price - Arboon

Installment Ijara Financing Amount÷ Period (Tenure)

Recovery Level Gross Monthly Income x Affordability (%)

Rental Recovery Level - Installment

Total Rental Rental x Tenure

Saving Level Rental x 100 ÷ Gross Monthly Income

Expense Level Saving Level x 100 ÷ Gross Monthly Income

Profitability Total Rental x 100 ÷ Ijara Financing Amount