Islamic Relief Zakat Calculator
Use this calculator to determine your Zakat obligation based on your eligible assets and liabilities. Zakat is typically 2.5% of your net zakatable wealth held for a lunar year, provided it meets the Nisab threshold.
Your Zakat Calculation:
Total Zakat-Eligible Wealth: £0.00
Your Zakat Due: £0.00
Please note: Zakat is only obligatory if your net zakatable wealth exceeds the Nisab threshold. Refer to the article below for current Nisab values.
Understanding Zakat in Islam
Zakat is one of the five pillars of Islam, an obligatory charity paid annually by Muslims who meet the necessary criteria of wealth. 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 Muslim who possesses wealth above a certain 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 a Muslim must possess before they are obliged to pay Zakat. It is traditionally equivalent to the value of 87.48 grams of pure gold or 612.36 grams of pure silver. The monetary value of Nisab fluctuates daily with the market prices of gold and silver. It's crucial to check the current Nisab value from a reliable Islamic source or charity organization like Islamic Relief.
What Assets Are Zakatable?
Zakat is typically calculated on the following types of assets:
- Cash: Money in bank accounts, savings, and cash in hand.
- Gold and Silver: Jewelry, coins, bars, or any other form of gold and silver.
- Investments: Shares, stocks, mutual funds, bonds, and other investment portfolios.
- Business Assets: Goods for resale, raw materials, and profits from business.
- Rental Income: Net income from properties held for investment.
- Other Assets: Any other wealth that is productive or has the potential for growth, such as outstanding loans owed to you that are likely to be repaid.
Personal use items like your home, car, and household furniture are generally not zakatable.
How is Zakat Calculated?
The standard Zakat rate is 2.5% of your net zakatable wealth. The calculation involves:
- Summing all eligible assets: Add up the current market value of all your zakatable assets.
- Deducting immediate liabilities: Subtract any short-term debts, immediate bills, or financial obligations that are due.
- Determining Net Zakatable Wealth: The remaining amount is your net zakatable wealth.
- Comparing with Nisab: If your net zakatable wealth meets or exceeds the Nisab threshold, then Zakat becomes obligatory.
- Calculating Zakat Due: Multiply your net zakatable wealth by 2.5% (or 0.025).
This calculator helps you with steps 1, 2, and 5. You should verify the current Nisab value independently.
The Importance of Zakat
Paying Zakat is not just a financial obligation but a spiritual act of worship. It purifies wealth, promotes economic justice, reduces poverty, and strengthens community bonds. By fulfilling this pillar, Muslims contribute to a more equitable society and earn immense rewards from Allah (SWT).