Sukuk Yield Calculator - Islamic Bond Returns
Calculate returns on Sukuk (Islamic bonds). Compare Ijara, Murabaha, Musharaka, and other sukuk types. Halal fixed-income investment calculator.
يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا الرِّبَا
"O you who believe, do not consume interest."
— Surah Aal-E-Imran (3:130)
Investment Details
100 = par, <100 = discount, >100 = premium
Ijara Sukuk
Asset-backed lease certificates. Investors own a share of the underlying asset and receive rental income.
Investment Returns
Total Investment
$10,000.00
Total Profit
$2,500.00
Maturity Value
$12,500.00
Effective Yield
5.00%
Annual Profit
$500.00
Profit per Payment
$250.00
Number of Payments
10
Types of Sukuk
Ijara Sukuk
Asset-backed lease certificates. Investors own a share of the underlying asset and receive rental income.
Murabaha Sukuk
Cost-plus financing certificates. Based on sale of commodities with deferred payment at a markup.
Musharaka Sukuk
Partnership certificates. Investors share profits and losses from a joint venture.
Mudaraba Sukuk
Profit-sharing certificates. Capital from investors, management by issuer, profits shared.
Wakala Sukuk
Agency certificates. Investors appoint an agent to invest in Shariah-compliant assets.
Hybrid Sukuk
Combination of multiple structures to optimize returns and risk.
💡 Why Choose Sukuk?
- • Shariah-compliant: Returns are based on profit-sharing, not interest (riba).
- • Asset-backed: Most sukuk are backed by tangible assets, providing security.
- • Regular income: Receive periodic profit distributions (usually semi-annually).
- • Capital preservation: Face value returned at maturity (unless profit-loss sharing).
- • Diversification: Alternative to stocks for portfolio diversification.
📊 Sukuk vs. Conventional Bonds
| Feature | Sukuk | Bonds |
|---|---|---|
| Return Type | Profit/Rent | Interest |
| Asset Backing | Required | Optional |
| Ownership | Asset ownership | Debt obligation |
| Shariah Status | Halal | Haram |
Note: This calculator provides estimates based on stated profit rates. Actual returns may vary. Some sukuk types (Musharaka, Mudaraba) involve profit-loss sharing where returns are not guaranteed. Always review the sukuk prospectus and consult with Islamic finance professionals before investing.
Frequently Asked Questions
What is a Sukuk?
Sukuk (plural: sukuk, singular: sakk) are Islamic financial certificates similar to bonds but structured to comply with Shariah law. Unlike conventional bonds that pay interest, sukuk represent ownership in tangible assets, services, or projects and provide returns through profit-sharing, rental income, or trading profits. They are often called "Islamic bonds" though they function quite differently.
How do sukuk returns work?
Sukuk returns are based on the underlying asset or project, not interest. For example, Ijara sukuk provide rental income from leased assets, while Musharaka sukuk share profits from business ventures. The "profit rate" is determined upfront based on expected returns from the underlying Shariah-compliant activity. At maturity, investors receive their principal back (unless it's a profit-loss sharing structure).
What are sovereign sukuk?
Sovereign sukuk are issued by governments to raise funds for infrastructure and development projects. Countries like Malaysia, Saudi Arabia, UAE, Indonesia, and even non-Muslim countries like the UK have issued sovereign sukuk. These are generally considered lower risk as they're backed by government assets and credit. The global sukuk market exceeds $700 billion.
Are sukuk completely risk-free?
No, sukuk carry various risks including: credit risk (issuer may default), market risk (value fluctuates with profit rates), liquidity risk (may be hard to sell), and for profit-loss sharing sukuk, the risk of actual losses. However, Ijara and Murabaha sukuk with predetermined returns are generally lower risk. Always review the sukuk prospectus and consider your risk tolerance.
How can I invest in sukuk?
Individual investors can access sukuk through: Islamic banks offering sukuk products, sukuk mutual funds and ETFs (like the SPSK ETF), direct purchase during public offerings, or secondary market trading (limited in some regions). Minimum investments vary widely - retail sukuk may start at $1,000 while institutional sukuk often require $100,000+.
Global Sukuk Market
$800B+
Global Sukuk Outstanding
30+
Countries Issuing Sukuk
15%
Annual Market Growth
Major Sukuk-Issuing Countries
🇲🇾
Malaysia
#1 Market Share
🇸🇦
Saudi Arabia
Largest Issuer
🇦🇪
UAE
Major Hub
🇮🇩
Indonesia
Growing Market
💼 Tips for Sukuk Investors
- • Diversify: Don't put all funds in one sukuk. Spread across issuers and types.
- • Check ratings: Look for sukuk with investment-grade ratings (BBB or higher).
- • Understand the structure: Know if it's Ijara, Murabaha, Musharaka, etc.
- • Consider funds: Sukuk funds provide diversification and professional management.
- • Hold to maturity: If you need liquidity, consider sukuk funds over direct holdings.
- • Tax implications: Sukuk may have different tax treatment than bonds in your country.
Typical Sukuk Yields
| Sukuk Type | Typical Yield | Risk Level | Minimum Investment |
|---|---|---|---|
| Sovereign Sukuk (Malaysia/GCC) | 3-5% | Low | $1,000 |
| Corporate Ijara Sukuk | 4-6% | Low-Medium | $10,000 |
| Corporate Musharaka Sukuk | 5-8% | Medium | $25,000 |
| Green/ESG Sukuk | 4-6% | Low-Medium | $50,000 |
| Sukuk Funds/ETFs | 3-5% | Low | $100 |
📊 Sukuk Investment Products
ETFs
- • SP Funds Dow Jones Global Sukuk ETF (SPSK)
- • Franklin FTSE Sukuk ETF
- • Various regional sukuk ETFs
Mutual Funds
- • Public Mutual sukuk funds (Malaysia)
- • Azzad Wise Capital Fund (USA)
- • Various Islamic bank offerings
⚠️ Important Disclaimer
This calculator provides estimates for educational purposes only. Actual sukuk returns depend on issuer performance, market conditions, and the specific sukuk structure. Past performance does not guarantee future results. Some sukuk types (Musharaka, Mudaraba) involve profit-loss sharing where principal is at risk. Always read the sukuk prospectus, understand the risks, and consult with qualified Islamic finance professionals before investing. This is not financial advice.