Zakat Calculator

Category: Other Finance
- January 13, 2025
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Cash & Bank Balances

Physical cash you possess
Total amount in bank accounts
Fixed deposits and savings

Gold & Silver

Current market value of gold
Current market value of silver

Investments & Business

Current market value of investments
Net value of business assets
Value of goods for trade

Deductions

Total amount of debts owed
Upcoming necessary expenses

Zakat Formula:

Zakat = Net Zakatable Amount × 0.025

What Is Zakat?

Zakat is a mandatory form of charity in Islam, representing one of its five pillars. It is an obligation for Muslims who meet the required wealth threshold, called Nisab. The purpose of Zakat is to purify wealth, help the less fortunate, and contribute to the welfare of the community.

How to Use the Zakat Calculator

The Zakat Calculator helps you determine your Zakat obligation accurately by following these simple steps:

  • Enter the total value of your cash, savings, and bank balances.
  • Add the current market value of your gold and silver.
  • Include investments, business assets, and trade merchandise.
  • Deduct your debts and necessary upcoming expenses.
  • Click the "Calculate Zakat" button to get the Zakatable amount and the Zakat you owe.

Key Features of the Zakat Calculator

  • Automated Calculations: Eliminates the need for manual computation.
  • Customizable Inputs: Includes fields for a variety of asset types and deductions.
  • Accurate Results: Calculates Zakat at the standard rate of 2.5%.
  • Visual Insights: Provides a breakdown of assets and deductions for better understanding.

Understanding Zakatable Assets

Zakat is calculated on specific assets that you own for a full lunar year (Hawl). These include:

  • Cash and Savings: Physical cash, bank balances, and fixed deposits.
  • Precious Metals: Gold and silver, valued at current market rates.
  • Investments: Stocks, shares, and business profits.
  • Trade Merchandise: Inventory held for business purposes.

Frequently Asked Questions

What is the Nisab Threshold?

The Nisab is the minimum amount of wealth required for Zakat to be obligatory. It is equivalent to the value of 87.48 grams of gold or 612.36 grams of silver.

When Do I Pay Zakat?

Zakat is due annually and should be paid once your wealth exceeds the Nisab threshold and is held for a full lunar year.

What Are Valid Deductions?

Liabilities such as debts and necessary expenses can be deducted before calculating the Zakatable amount.

What Happens if My Wealth is Below Nisab?

If your total wealth after deductions is below the Nisab, you are not obligated to pay Zakat.

Benefits of Paying Zakat

  • Spiritual Purification: Cleanses your wealth and purifies your heart from greed.
  • Social Welfare: Supports the less fortunate and reduces economic inequality.
  • Community Growth: Helps in building a stronger, more compassionate society.