Zakat Calculator
Estimate your Zakat (obligatory charity) on various forms of wealth, including cash, gold, silver, and trade goods. This calculator helps you determine if your wealth meets the Nisab threshold and calculates the Zakat amount due (typically 2.5%).
How to Use the Zakat Calculator
- Determine Nisab (Threshold):
- Enter the "Current Price of 1 Gram of 24 Karat Gold" in your local currency. The calculator will display the estimated Nisab value (equivalent to 85 grams of gold). Zakat is generally due if your net zakatable wealth exceeds this Nisab for a full lunar year.
- List Your Zakatable Assets: Enter the current market value for each relevant asset category you've possessed for a full lunar year (Hawl):
- Cash & Bank Balances: Total cash on hand and in bank accounts (savings, checking).
- Gold Owned: Enter the weight in grams and select the Karat (purity). If "Other" is selected, or if you know the total current market value of your gold, enter it in the "Total Value of 'Other' Gold" field. The calculator uses the gold price per gram (from step 1) to value gold based on purity.
- Silver Owned: Enter the weight of silver in grams and the current market price per gram of silver.
- Trade Goods / Business Inventory: The current market value of goods held for sale or business inventory.
- Other Zakatable Assets: Value of other assets on which Zakat is due, such as shares held for trading (not long-term investment for dividends), etc.
- Deduct Liabilities: Enter the total amount of "Short-Term Debts / Liabilities Due Within One Year" (e.g., immediate loan payments, outstanding bills, rent due).
- Calculate Zakat: Click the "Calculate Zakat" button.
- Review Your Estimate: The "Zakat Calculation Summary" will show:
- A breakdown of your total assets.
- Your Gross and Net Zakatable Wealth.
- The calculated Nisab threshold for comparison.
- A message indicating if Zakat is due based on whether your net wealth exceeds Nisab.
- The Total Estimated Zakat Due (calculated at 2.5% of your Net Zakatable Wealth if it's above Nisab).
Understanding Zakat: Key Concepts
Zakat is a fundamental pillar of Islam, representing an obligatory act of charity and purification of wealth for eligible Muslims. Here are some key concepts related to Zakat on wealth:
- Nisab: The minimum threshold of wealth a Muslim must own for a full lunar year (Hawl) for Zakat to become obligatory. It is traditionally defined as the monetary equivalent of 85 grams of pure gold or 595 grams of pure silver. This calculator uses the gold standard for Nisab. You must provide the current market price of gold in your local currency for an accurate Nisab calculation.
- Hawl: The completion of one lunar year (approximately 354 or 355 days) during which a person's wealth has remained at or above the Nisab level.
- Zakatable Assets: Wealth upon which Zakat is due. This calculator covers common categories like:
- Cash (on hand, in bank accounts).
- Gold and Silver (in any form – jewelry, bullion, etc., if held as an asset or store of value beyond personal use items according to some interpretations).
- Trade Goods & Business Inventory (valued at current market price).
- Shares held for the purpose of trading/capital gains (not typically those held for long-term investment and dividends, though rules can vary).
- Deductible Liabilities: Short-term debts and immediate financial obligations that are due within the next lunar year can generally be deducted from your gross zakatable wealth before calculating Zakat. This does not typically include long-term debts like mortgages beyond the payments due within the next year.
- Zakat Rate: The standard rate for Zakat on monetary wealth, gold, silver, and trade goods is 2.5% (or 1/40th) of the net zakatable wealth that has met the Nisab and Hawl conditions.
This tool does NOT cover Zakat on: Agricultural produce (Ushr), livestock (cattle, sheep, camels), or discovered treasures/minerals (Rikaz), as these have different Nisab thresholds and calculation methods.
Frequently Asked Questions (FAQ)
What if I don't know the current price of gold or silver?
You will need to find the current market price for 1 gram of 24K gold (and 1 gram of silver if you own silver) in your local currency. You can usually find this information from local jewelers, financial news websites, or commodity market trackers. An accurate gold price is essential for calculating the Nisab threshold correctly.
How is Zakat on gold jewelry calculated if I wear it?
There are differing scholarly opinions on whether Zakat is due on gold jewelry intended for personal use. Some scholars say it is exempt, while others say it is due if it exceeds the Nisab. This calculator assumes that the gold weight you enter is zakatable. It's best to consult a local scholar for guidance based on your specific situation and the school of thought you follow.
What about Zakat on shares or investments?
Zakat on shares can be complex. Generally, if shares are held for trading (short-term capital gains), their full market value is zakatable. If held for long-term investment and dividends, Zakat might be due on the zakatable portion of the underlying company assets or on the dividends received, depending on scholarly opinion. This calculator has an "Other Zakatable Assets" field where you can include the value of shares you've determined to be zakatable. Consultation with a scholar is advised for specifics.
Does this calculator use the Hijri (lunar) year for Hawl?
The concept of Hawl (one full lunar year) is fundamental to Zakat. This calculator assumes you have determined that your wealth has met the Hawl condition. It does not track the Hawl period itself but calculates Zakat based on the asset values you provide as of your Zakat due date.