Zakat Calculator
Use this calculator to determine your Zakat obligation based on your eligible wealth and the current Nisab value.
Understanding Zakat in Islam
Zakat is one of the five pillars of Islam, an obligatory charity paid annually by Muslims who meet certain wealth criteria. It serves as a means of purifying one's wealth and distributing it among the poor and needy, fostering economic justice and social welfare within the community.
Who Must Pay Zakat?
Zakat is obligatory upon every adult, sane Muslim who possesses wealth above a certain minimum threshold, known as the Nisab, for a full lunar year (Hawl). This wealth must be productive or have the potential for growth.
What is Nisab?
Nisab is the minimum amount of wealth that a Muslim must possess before being obliged to pay Zakat. The Nisab value is traditionally defined in two ways:
- Gold: The value of 87.48 grams of pure gold.
- Silver: The value of 612.36 grams of pure silver.
The monetary value of Nisab fluctuates daily with the market prices of gold and silver. For calculation purposes, it is generally recommended to use the value of silver as it is lower, thus benefiting more recipients of Zakat. However, many scholars also permit using the gold standard. It is crucial to check the current market value of gold or silver in your local currency on the day you calculate your Zakat.
What Assets Are Zakat-Eligible?
Zakat is due on various forms of wealth, provided they meet the Nisab threshold and have been in one's possession for a full lunar year. Common Zakat-eligible assets include:
- Cash and Bank Savings: Money held in bank accounts, physical cash, and other liquid funds.
- Gold and Silver: This includes jewelry (if not for personal adornment or if exceeding customary use), coins, bars, and any other form of gold or silver.
- Investments and Shares: The market value of stocks, bonds, mutual funds, and other liquid investments. Zakat is typically due on the capital value of these investments, not just the dividends.
- Business Assets and Inventory: The value of goods held for sale, raw materials, and finished products in a business. Fixed assets like machinery or property used for business operations are generally exempt, but their net rental income (if applicable) may be Zakat-eligible.
- Rental Income: Net income from properties or other assets that are rented out, once it has been held for a full year and meets Nisab.
- Other Eligible Assets: This can include certain types of livestock (with specific rules), agricultural produce (with different calculation methods), and other forms of wealth that are productive or have growth potential.
What Assets Are NOT Zakat-Eligible?
Certain assets are generally exempt from Zakat, as they are considered necessities for daily living:
- Personal residence (the home you live in).
- Personal vehicles.
- Clothing, furniture, and household appliances for personal use.
- Tools and equipment used for one's profession (e.g., a doctor's instruments, a carpenter's tools).
How to Calculate Zakat
The standard rate for Zakat on wealth (like cash, gold, silver, and business assets) is 2.5% of the net Zakat-eligible wealth that has been held for a full lunar year and exceeds the Nisab threshold.
The calculation process is as follows:
- Sum all Zakat-eligible assets: Add up the current market value of all your cash, gold, silver, investments, business inventory, and other eligible wealth.
- Subtract immediate debts: Deduct any short-term debts or liabilities that are due immediately or within the current Zakat year.
- Determine Net Zakat-Eligible Wealth: This is your total eligible assets minus your debts.
- Compare with Nisab: Check if your Net Zakat-Eligible Wealth is equal to or greater than the current Nisab value.
- Calculate Zakat Due: If your wealth meets or exceeds Nisab, then Zakat due is 2.5% of your Net Zakat-Eligible Wealth.
Example Calculation:
Let's assume the current Nisab value is $5,000 USD.
- Cash & Bank Savings: $10,000
- Value of Gold: $3,000
- Value of Investments: $7,000
- Debts Owed: $2,000
Total Zakat-Eligible Assets: $10,000 + $3,000 + $7,000 = $20,000
Net Zakat-Eligible Wealth: $20,000 – $2,000 = $18,000
Since $18,000 is greater than the Nisab of $5,000, Zakat is due.
Zakat Due: 2.5% of $18,000 = $450
Using the Zakat Calculator:
Our Zakat calculator simplifies this process. Simply enter the current values for each of your Zakat-eligible assets and any debts you owe. Crucially, input the current Nisab value (which you should verify from a reliable source on the day of calculation). The calculator will then instantly determine your net Zakat-eligible wealth and the amount of Zakat you need to pay.
May Allah accept your Zakat and bless your wealth.