Meezan Bank Profit Rates Calculator

Meezan Bank Profit Rates Calculator

Calculation Results

Gross Annual Profit:	PKR 0
Withholding Tax Deduction:	PKR 0
Zakat Deduction:	PKR 0
Net Annual Profit:	PKR 0
Monthly Profit:	PKR 0

function calculateMeezanProfit() { var amount = parseFloat(document.getElementById('depositAmount').value); var rate = parseFloat(document.getElementById('profitRate').value); var filerStatus = document.getElementById('filerStatus').value; var zakatOption = document.getElementById('zakatDeduction').value; if (isNaN(amount) || isNaN(rate) || amount <= 0 || rate <= 0) { alert("Please enter valid positive numbers for deposit amount and profit rate."); return; } // Gross Annual Profit var grossAnnual = (amount * rate) / 100; // Tax calculation var taxRate = 0; if (filerStatus === 'filer') taxRate = 0.15; else if (filerStatus === 'nonfiler') taxRate = 0.30; var taxAmount = grossAnnual * taxRate; // Zakat calculation var zakatAmount = 0; if (zakatOption === 'yes') { zakatAmount = amount * 0.025; } // Net Profit var netAnnual = grossAnnual – taxAmount; // Monthly calculation var netMonthly = netAnnual / 12; // Display results document.getElementById('resGrossAnnual').innerText = 'PKR ' + grossAnnual.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTax').innerText = '- PKR ' + taxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resZakat').innerText = '- PKR ' + zakatAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resNetAnnual').innerText = 'PKR ' + netAnnual.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMonthly').innerText = 'PKR ' + netMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultArea').style.display = 'block'; }

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Understanding Meezan Bank Profit Rates and Calculations

Meezan Bank operates on the principles of Shariah, specifically through Mudarabah (Profit and Loss sharing). Unlike conventional banks that offer fixed interest rates, Meezan Bank provides a profit-sharing ratio. The "Profit Rate" you see on their website is based on historical weightages and actual profits earned by the bank's Shariah-compliant investment pools.

How the Calculator Works

This calculator helps you estimate your potential monthly income from various savings accounts like the Meezan Bachat Account, Meezan Kafalah, or Term Deposit Certificates. It takes three major factors into account:

• Principal Amount: The total money you have deposited in the bank.
• Expected Rate: The annual profit percentage announced by Meezan Bank for your specific account category.
• Tax Deductions: As per Pakistan's tax laws, Withholding Tax (WHT) is deducted from the profit. Active filers pay 15%, while non-filers pay 30%.

Profit Sharing Mechanism

In a Shariah-compliant setup, the bank is the 'Mudarib' (manager) and you are the 'Rabb-ul-Maal' (investor). The profit is shared according to pre-agreed weightages. If the bank earns more, your profit increases; if it earns less, the profit rate reflects that change. This is fundamentally different from "Riba" or interest-based banking.

Realistic Example Calculation

Suppose you invest PKR 1,000,000 at an expected annual profit rate of 20%. Here is how your monthly return is calculated:

1. Gross Annual Profit: (1,000,000 * 20) / 100 = PKR 200,000.
2. Tax Deduction (Filer @ 15%): 200,000 * 0.15 = PKR 30,000.
3. Net Annual Profit: 200,000 – 30,000 = PKR 170,000.
4. Net Monthly Profit: 170,000 / 12 = PKR 14,166.67.

Important Note on Zakat

Zakat is deducted by the bank on the 1st of Ramadan at a rate of 2.5% on the total balance, unless a Zakat Exemption (CZ-50) form is submitted. Our calculator allows you to visualize this deduction to see how it impacts your net liquidity, though Zakat is technically a deduction from the principal balance, not just the profit.

Disclaimer: This calculator provides estimates based on current tax laws and user-provided rates. Actual profit rates are announced monthly by Meezan Bank and are subject to the bank's final profit distribution.