Difference between Profit and Interest

Difference between Profit and Interest:

1. When money is charged, its imposed positive and define result is Interest.
When money is used in trading, its uncertain result is profit.


2. Interest is the premium paid by the borrower to the lender along with principal amount as a condition for the loan.
Profit is the difference between the value of production and the cost of production.

3. Interest is prefixed, and hence there is no uncertainty on the part of either the givers or the takers of loans.
Profit is post-determined, and hence its amount is not known until the activity is done. It is a residual income and not contractual or certain.

4. Interest always be positive, it can at best be very low or zero.
Profit may be positive, zero or even negative.

5. From Islamic Shariah point of view, it is Haram or prohibited.
From Islamic Shariah point of view, it is Halal or not prohibited.