What is Zakat?

Zakat is one of the five pillars of Islam. It is an obligatory act of charity for Muslims who meet the necessary criteria of wealth. It involves giving a fixed portion (usually 2.5%) of one’s wealth to eligible recipients.

Who Should Pay Zakat?

Zakat is obligatory on adult Muslims who are sane and possess wealth equal to or exceeding the Nisab for one full Hijri (lunar) year.

What is Nisab?

Nisab is the minimum threshold of wealth a Muslim must possess for Zakat to be due. It is traditionally equivalent to the value of 7.5 tola (approx. 87.48 grams) of gold or 52.5 tola (approx. 612.36 grams) of silver. You need to find the current market value of either of these in your local currency to determine the Nisab.

This calculator requires you to enter the Nisab value in your local currency.

Assets Subject to Zakat:

• Cash: Money on hand, in bank accounts (savings, current).
• Gold and Silver: In any form (coins, bars, jewelry not for daily personal wear according to some scholars – consult a scholar for jewelry).
• Business Assets:
  • Trading Goods/Inventory: Valued at current sale price.
  • Receivables: Money owed to you that is likely to be recovered.
  • Business Cash.
• Shares/Stocks:
  • If held for trading: Zakat is due on the current market value.
  • If held for long-term investment (e.g., dividends): Zakat is due on the Zakatable portion of the company’s assets represented by your shares, or on the dividends if certain conditions are met. This can be complex; consult a scholar. This calculator simplifies by taking the current market value as a proxy if intended for growth/resale.
• Rental Income: Net income received after deducting property-related expenses.
• Other Assets: Such as bonds (excluding interest), and other cash-equivalent assets.

Deductible Liabilities:

Short-term debts that are due to be paid within the lunar year can be deducted from your Zakatable assets before calculating Zakat. These include loans, unpaid bills, etc.

Calculation:

Zakat Rate = 2.5%

Total Zakatable Assets – Deductible Liabilities = Net Zakatable Wealth

If Net Zakatable Wealth ≥ Nisab, then Zakat Due = Net Zakatable Wealth × 0.025

Disclaimer: This Zakat calculator provides an estimate based on general principles. Zakat calculation can involve specific details and scholarly differences. For precise calculations and specific religious guidance, please consult a qualified Islamic scholar.