Profit distribution among partners

Each partner's share of the profit after Zakat, the retained amount and their drawings, in a table ready to sign.

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What does this tool answer?

At the end of the year, every partner asks: What is my share, and how much is left for me after what I have drawn? The tool calculates the distributable profit, each partner's share according to their stake, and the amount due to or from them after their drawings during the year, and gives you a report with signature boxes for the partners.

The formulas

  • Distributable profit = net profit for the year − Zakat − amount retained in the business.
  • Partner's share = distributable profit × their stake percentage, rounded to two decimal places (halalas). The rounding difference (one or two halalas) is added to the partner with the largest stake so that the total of the shares equals the distributable profit exactly.
  • Amount due to the partner = their share − their drawings during the year. If it is negative, they have drawn more than their share.
  • The stakes must add up to 100%.

The retained amount and the articles of association

The Saudi Companies Law issued in 1443H leaves the creation of reserves to the company's contract and articles of association, so the tool does not impose any percentage: enter the amount the partners agreed to keep in the business as a reserve or for expansion, as your company's contract provides.

Worked example

Net profit for the year is 300,000 SAR, Zakat is 7,500 SAR, the retained amount is 42,500 SAR, and there are three partners with stakes of 50%, 30% and 20%. The first partner drew 100,000 SAR and the third drew 60,000 SAR:

  • Distributable profit = 300,000 − 7,500 − 42,500 = 250,000.00 SAR.
  • The first partner's share = 250,000 × 50% = 125,000.00, and the amount due to them is 125,000 − 100,000 = 25,000.00 SAR.
  • The second partner's share = 250,000 × 30% = 75,000.00, and they drew nothing, so the amount due to them is 75,000.00 SAR.
  • The third partner's share = 250,000 × 20% = 50,000.00, and they drew 60,000 SAR, so they owe 10,000.00 SAR, to be paid back or settled according to the company's contract.

Limits of the tool

The tool does not calculate Zakat itself (use the Zakat calculator in the accountant tools), and it does not decide the retained amount: both are numbers you enter yourself. The final distribution follows the company's contract and the partners' decision. This is an estimate based on the numbers you entered, not financial or investment advice.

Frequently asked questions

Why does one partner's share differ by a halala?
Because the shares are rounded to two decimal places (halalas), so the rounding difference is added to the partner with the largest stake until the total equals the distributable profit exactly.
What if a partner drew more than their share?
The amount due to them appears as negative (in brackets), meaning they owe this amount to the business, and it is settled according to the company's contract and the partners' agreement.
Do I enter the stakes as their percentages of the capital?
Enter each partner's percentage of the profits as stated in the company's contract; it is usually their percentage of the capital unless the contract states otherwise.

Content last reviewed: 2026-10-28

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