Sukuk Yield Calculator
Work out the real return on an Islamic bond (sukuk): yield to maturity, current yield, periodic profit distribution and total return - from its price, profit rate and maturity.
YTM is an estimate assuming distributions are held to maturity and the issuer does not default. A sukuk pays profit from real assets, not interest - always confirm a specific sukuk\'s structure and Shariah compliance with its board. Not investment or religious advice.
Frequently asked
What is a sukuk?
A sukuk is a Shariah-compliant investment certificate - often called an "Islamic bond". Instead of paying interest (riba), which is prohibited, a sukuk represents ownership in a real underlying asset or project and pays you periodic profit distributions generated by that asset. At maturity the face value is typically redeemed.
How is sukuk yield to maturity (YTM) calculated?
YTM is the annualised return you earn if you buy the sukuk at its current price and hold it to maturity, receiving all profit distributions and the face value at the end. It is the discount rate that makes the present value of all future cash flows equal to the current price. This calculator solves it precisely and also shows the simpler current yield.
How is a sukuk different from a conventional bond?
Economically they can look similar, but the structure differs: a bond is a loan that charges interest, while a sukuk is backed by tangible assets and pays profit from those assets - so it is designed to be Shariah-compliant. A sukuk holder owns a share of the asset; a bondholder owns debt. Always confirm a specific sukuk's structure with its Shariah board.
Profit rate vs yield - what is the difference?
The profit rate (like a coupon) is fixed against the face value - e.g. 5% of 1,000 = 50 per year. The yield reflects what you actually earn based on the price you pay: if you buy below face value (discount) your yield is higher than the profit rate; if you pay above (premium) it is lower.
Current yield vs yield to maturity?
Current yield = annual profit distribution ÷ current price - a quick snapshot ignoring maturity. Yield to maturity (YTM) also factors in the gain or loss when the face value is redeemed at maturity, so it is the more complete measure of total return for a buy-and-hold investor.
Are sukuk risk-free?
No. Like any investment a sukuk carries credit risk (the issuer may default), profit-rate risk (prices move as rates change) and liquidity risk. Sovereign and blue-chip corporate sukuk are generally lower risk. This is an estimate, not investment or religious advice - confirm structure and Shariah compliance with your board.