Is making a profit from trading halal? Is there a limit on profit?

The short answer

Yes. Buying and selling for profit is halal, and the Quran contrasts lawful trade with forbidden interest. The texts set no fixed percentage; the Prophet ﷺ even prayed for blessing for a Companion who doubled his money in a deal. What matters is that the sale is by mutual consent, honest about the goods, and free of exploitation.

Evidence 1 2 3 4 5 6 7 8

Explanation

Trade is one of the most praised ways of earning in Islam. Allah "has permitted trade and has forbidden interest" 1, and He permits people to take each other's wealth through "business by mutual consent" 2.

Is there a profit limit? The Prophet ﷺ gave Urwa (RA) one dinar to buy a sheep. Urwa bought two sheep, sold one for a dinar, and returned with a sheep and the dinar. The Prophet ﷺ did not object to this 100% profit; he prayed for blessing in his trade 3. When prices rose and people asked him to fix them, he declined, saying that Allah is the one who fixes prices and that he did not want to meet Allah with anyone claiming he had wronged them 4. So the market price, freely agreed, is the default.

What makes profit unlawful is not its size but how it is made:

  • Lying or hiding defects. If buyer and seller are truthful and disclose defects, their deal is blessed; if they lie or conceal, the blessing is wiped out 5.
  • Cheating. "He who deceives is not of me" 6.
  • False bidding to push the price up (najsh), which the Prophet ﷺ forbade 7.

Scholars also warn against exploiting someone's desperation or ignorance, since the Prophet ﷺ prayed for mercy on the one who is "lenient in his buying, selling" 8. Honest profit, generously dealt, is a blessing to seek.

The evidence

  1. 1
    Quran Al-Baqara · 2:275

    Allah permitted trade and forbade interest.

    ٱلَّذِينَ يَأۡكُلُونَ ٱلرِّبَوٰاْ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِي يَتَخَبَّطُهُ ٱلشَّيۡطَٰنُ مِنَ ٱلۡمَسِّۚ ذَٰلِكَ بِأَنَّهُمۡ قَالُوٓاْ إِنَّمَا ٱلۡبَيۡعُ مِثۡلُ ٱلرِّبَوٰاْۗ وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَوٰاْۚ فَمَن جَآءَهُۥ مَوۡعِظَةࣱ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمۡرُهُۥٓ إِلَى ٱللَّهِۖ وَمَنۡ عَادَ فَأُوْلَٰٓئِكَ أَصۡحَٰبُ ٱلنَّارِۖ هُمۡ فِيهَا خَٰلِدُونَ ۝٢٧٥

    Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein

  2. 2
    Quran An-Nisaa · 4:29

    Wealth may be taken through business by mutual consent, not unjustly.

    يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُواْ لَا تَأۡكُلُوٓاْ أَمۡوَٰلَكُم بَيۡنَكُم بِٱلۡبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضࣲ مِّنكُمۡۚ وَلَا تَقۡتُلُوٓاْ أَنفُسَكُمۡۚ إِنَّ ٱللَّهَ كَانَ بِكُمۡ رَحِيمࣰ ا ۝٢٩

    O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allah is to you ever Merciful

  3. 3
    Hadith Sahih al-Bukhari 3642
    Sahih Bukhari

    Urwa bought two sheep for a dinar, sold one for a dinar, and the Prophet ﷺ prayed for blessing in his trade.

    Narrated `Urwa:That the Prophet (ﷺ) gave him one Dinar so as to buy a sheep for him. `Urwa bought two sheep for him with the money. Then he sold one of the sheep for one Dinar, and brought one Dinar and a sheep to the Prophet. On that, the Prophet (ﷺ) invoked Allah to bless him in his deals. So `Urwa used to gain (from any deal) even if he bought dust. (In another narration) `Urwa said, "I heard Allah's Messenger (ﷺ) saying, "There is always goodness in horses till the Day of Resurrection." (The subnarrator added, "I saw 70 horses in `Urwa's house.') (Sufyan said, "The Prophet (ﷺ) asked `Urwa to buy a sheep for him as a sacrifice

    العربية

    حَدَّثَنَا عَلِيُّ بْنُ عَبْدِ اللَّهِ، أَخْبَرَنَا سُفْيَانُ، حَدَّثَنَا شَبِيبُ بْنُ غَرْقَدَةَ، قَالَ سَمِعْتُ الْحَىَّ، يُحَدِّثُونَ عَنْ عُرْوَةَ، أَنَّ النَّبِيَّ صلى الله عليه وسلم أَعْطَاهُ دِينَارًا يَشْتَرِي بِهِ شَاةً، فَاشْتَرَى لَهُ بِهِ شَاتَيْنِ، فَبَاعَ إِحْدَاهُمَا بِدِينَارٍ وَجَاءَهُ بِدِينَارٍ وَشَاةٍ، فَدَعَا لَهُ بِالْبَرَكَةِ فِي بَيْعِهِ، وَكَانَ لَوِ اشْتَرَى التُّرَابَ لَرَبِحَ فِيهِ‏.‏ قَالَ سُفْيَانُ كَانَ الْحَسَنُ بْنُ عُمَارَةَ جَاءَنَا بِهَذَا الْحَدِيثِ عَنْهُ، قَالَ سَمِعَهُ شَبِيبٌ مِنْ عُرْوَةَ، فَأَتَيْتُهُ فَقَالَ شَبِيبٌ إِنِّي لَمْ أَسْمَعْهُ مِنْ عُرْوَةَ، قَالَ سَمِعْتُ الْحَىَّ يُخْبِرُونَهُ عَنْهُ‏.‏ وَلَكِنْ سَمِعْتُهُ يَقُولُ سَمِعْتُ النَّبِيَّ صلى الله عليه وسلم يَقُولُ ‏ "‏ الْخَيْرُ مَعْقُودٌ بِنَوَاصِي الْخَيْلِ إِلَى يَوْمِ الْقِيَامَةِ ‏"‏‏.‏ قَالَ وَقَدْ رَأَيْتُ فِي دَارِهِ سَبْعِينَ فَرَسًا‏.‏ قَالَ سُفْيَانُ يَشْتَرِي لَهُ شَاةً كَأَنَّهَا أُضْحِيَّةٌ‏.‏

  4. 4
    Hadith Sunan Abi Dawud 3451
    Sahih graded by Al-Albani

    The Prophet ﷺ declined to fix prices, saying Allah is the one who fixes prices.

    Narrated Anas ibn Malik: The people said: Messenger of Allah , prices have shot up, so fix prices for us. Thereupon the Messenger of Allah (ﷺ) said: Allah is the one Who fixes prices, Who withholds, gives lavishly and provides, and I hope that when I meet Allah, none of you will have any claim on me for an injustice regarding blood or property

    العربية

    حَدَّثَنَا عُثْمَانُ بْنُ أَبِي شَيْبَةَ، حَدَّثَنَا عَفَّانُ، حَدَّثَنَا حَمَّادُ بْنُ سَلَمَةَ، أَخْبَرَنَا ثَابِتٌ، عَنْ أَنَسٍ، وَقَتَادَةُ، وَحُمَيْدٌ، عَنْ أَنَسٍ، قَالَ قَالَ النَّاسُ يَا رَسُولَ اللَّهِ غَلاَ السِّعْرُ فَسَعِّرْ لَنَا ‏.‏ فَقَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم ‏ "‏ إِنَّ اللَّهَ هُوَ الْمُسَعِّرُ الْقَابِضُ الْبَاسِطُ الرَّازِقُ وَإِنِّي لأَرْجُو أَنْ أَلْقَى اللَّهَ وَلَيْسَ أَحَدٌ مِنْكُمْ يُطَالِبُنِي بِمَظْلَمَةٍ فِي دَمٍ وَلاَ مَالٍ ‏"‏ ‏.‏

  5. 5
    Hadith Sahih al-Bukhari 2079
    Sahih Bukhari

    Truthfulness and disclosing defects bring blessing to a sale; lying and concealing destroy it.

    Narrated Hakim bin Hizam:Allah's Messenger (ﷺ) said, "The seller and the buyer have the right to keep or return goods as long as they have not parted or till they part; and if both the parties spoke the truth and described the defects and qualities (of the goods), then they would be blessed in their transaction, and if they told lies or hid something, then the blessings of their transaction would be lost

    العربية

    حَدَّثَنَا سُلَيْمَانُ بْنُ حَرْبٍ، حَدَّثَنَا شُعْبَةُ، عَنْ قَتَادَةَ، عَنْ صَالِحٍ أَبِي الْخَلِيلِ، عَنْ عَبْدِ اللَّهِ بْنِ الْحَارِثِ، رَفَعَهُ إِلَى حَكِيمِ بْنِ حِزَامٍ ـ رضى الله عنه ـ قَالَ قَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم ‏ "‏ الْبَيِّعَانِ بِالْخِيَارِ مَا لَمْ يَتَفَرَّقَا ـ أَوْ قَالَ حَتَّى يَتَفَرَّقَا ـ فَإِنْ صَدَقَا وَبَيَّنَا بُورِكَ لَهُمَا فِي بَيْعِهِمَا، وَإِنْ كَتَمَا وَكَذَبَا مُحِقَتْ بَرَكَةُ بَيْعِهِمَا ‏"‏‏.‏

  6. 6
    Hadith Sahih Muslim 102
    Sahih Muslim

    The Prophet ﷺ found hidden wet grain and said, "He who deceives is not of me."

    It is narrated on the authority of Abu Huraira that the Messenger of Allah (ﷺ) happened to pass by a heap of eatables (corn). He thrust his hand in that (heap) and his fingers were moistened. He said to the owner of that heap of eatables (corn):What is this? He replied: Messenger of Allah, these have been drenched by rainfall. He (the Holy Prophet) remarked: Why did you not place this (the drenched part of the heap) over other eatables so that the people could see it? He who deceives is not of me (is not my follower)

    العربية

    وَحَدَّثَنِي يَحْيَى بْنُ أَيُّوبَ، وَقُتَيْبَةُ، وَابْنُ، حُجْرٍ جَمِيعًا عَنْ إِسْمَاعِيلَ بْنِ جَعْفَرٍ، - قَالَ ابْنُ أَيُّوبَ حَدَّثَنَا إِسْمَاعِيلُ، - قَالَ أَخْبَرَنِي الْعَلاَءُ، عَنْ أَبِيهِ، عَنْ أَبِي هُرَيْرَةَ، ‏.‏ أَنَّ رَسُولَ اللَّهِ صلى الله عليه وسلم مَرَّ عَلَى صُبْرَةِ طَعَامٍ فَأَدْخَلَ يَدَهُ فِيهَا فَنَالَتْ أَصَابِعُهُ بَلَلاً فَقَالَ ‏"‏ مَا هَذَا يَا صَاحِبَ الطَّعَامِ ‏"‏ ‏.‏ قَالَ أَصَابَتْهُ السَّمَاءُ يَا رَسُولَ اللَّهِ ‏.‏ قَالَ ‏"‏ أَفَلاَ جَعَلْتَهُ فَوْقَ الطَّعَامِ كَىْ يَرَاهُ النَّاسُ مَنْ غَشَّ فَلَيْسَ مِنِّي ‏"‏ ‏.‏

  7. 7
    Hadith Sahih al-Bukhari 2142
    Sahih Bukhari

    The Prophet ﷺ forbade najsh (bidding up a price without intending to buy).

    Narrated Ibn `Umar:Allah's Messenger (ﷺ) forbade Najsh

    العربية

    حَدَّثَنَا عَبْدُ اللَّهِ بْنُ مَسْلَمَةَ، حَدَّثَنَا مَالِكٌ، عَنْ نَافِعٍ، عَنِ ابْنِ عُمَرَ ـ رضى الله عنهما ـ قَالَ نَهَى النَّبِيُّ صلى الله عليه وسلم عَنِ النَّجْشِ‏.‏

  8. 8
    Hadith Sahih al-Bukhari 2076
    Sahih Bukhari

    Allah's mercy is on the one who is lenient in buying, selling and asking for repayment.

    Narrated Jabir bin `Abdullah:Allah's Messenger (ﷺ) said, "May Allah's mercy be on him who is lenient in his buying, selling, and in demanding back his money

    العربية

    حَدَّثَنَا عَلِيُّ بْنُ عَيَّاشٍ، حَدَّثَنَا أَبُو غَسَّانَ، مُحَمَّدُ بْنُ مُطَرِّفٍ قَالَ حَدَّثَنِي مُحَمَّدُ بْنُ الْمُنْكَدِرِ، عَنْ جَابِرِ بْنِ عَبْدِ اللَّهِ ـ رضى الله عنهما ـ أَنَّ رَسُولَ اللَّهِ صلى الله عليه وسلم قَالَ ‏ "‏ رَحِمَ اللَّهُ رَجُلاً سَمْحًا إِذَا بَاعَ، وَإِذَا اشْتَرَى، وَإِذَا اقْتَضَى ‏"‏‏.‏

This answer was compiled with the help of AI, using only the verified texts shown here. Every reference links to its source. If you find a mistake, please report it. Updated 2026-09-24

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