Is there a limit on profit in Islam?

No, Islam sets no fixed percentage cap on profit. You can sell for whatever price a buyer freely agrees to. What Islam limits is how you make the profit: no lying, no hiding defects, no exploiting someone's desperation, and no hoarding to push prices up.

No fixed number

Some people have heard that profit above a third, or some other figure, is haram. Most scholars say there's no such rule in the Quran or Sunnah. The Prophet ﷺ once gave Urwa al-Bariqi one dinar to buy a sheep. Urwa bought two, sold one for a dinar, and came back with a sheep and the dinar, a 100% profit. Instead of objecting, the Prophet ﷺ prayed for blessing in his trade (Sahih al-Bukhari 3642).

When prices rose in Madinah and people asked him to fix them, he declined, saying that Allah is the one who sets prices, and that he didn't want to meet Allah having wronged anyone in their property (Sunan Abi Dawud 3451). Many scholars take this as the basis for letting prices follow the market in normal times.

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَـٰطِلِ إِلَّآ أَن تَكُونَ تِجَـٰرَةً عَن تَرَاضٍ مِّنكُمْ "O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent." Quran 4:29

Where the limits really are

Honesty: describe the item truthfully. Buyer and seller who are truthful are blessed in their deal, and lying wipes out that blessing (Sahih al-Bukhari 2079).
No hidden defects: the Prophet ﷺ said whoever deceives is not of him (Sahih Muslim 102).
No hoarding: buying up essentials to create a shortage and raise prices is sinful (Sahih Muslim 1605).
No exploiting need: many scholars say charging a huge markup to someone who is desperate or doesn't know the market value goes against fairness. The Maliki school, for example, gives a buyer the right to cancel a sale when they were grossly overcharged through ignorance.

Price gouging in a crisis

Charging extreme prices for water, food or medicine during an emergency is where many scholars allow the authorities to step in and set limits. Even without a law, it's hard to square with the mercy Islam asks of a Muslim trader.

For resellers and small sellers

If you flip sneakers, sell crafts or resell items online, you can set your own price. Be clear about condition, don't fake scarcity or reviews, and be generous to buyers who are struggling. If you earn by promoting other people's products, see Can I earn money from affiliate links as a Muslim? Once your stock and profits add up, remember zakat. See Do I pay zakat on my business?

Key points

There's no fixed profit cap; a freely agreed price is halal.
The Prophet ﷺ blessed a deal that doubled its money.
Lying, hiding defects, hoarding and exploiting need are forbidden.
In emergencies, gouging on essentials is widely condemned.

Tip: A simple test for any price: would you be comfortable if the buyer later learned exactly what you paid and why you charged what you did? If yes, your profit is likely clean.

Is there a limit on profit in Islam?

No fixed number

Where the limits really are

Price gouging in a crisis

For resellers and small sellers

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