Zakat Calculator

What is Zakat?

Zakat is an obligatory charitable payment made annually by Muslims who meet the necessary criteria of wealth. It is one of the Five Pillars of Islam, symbolizing purification of wealth and supporting those in need. Zakat is not merely a tax, but an act of worship and a means of fostering economic justice and social welfare within the community.

Who Must Pay Zakat?

Zakat is obligatory for every adult, sane Muslim who possesses wealth exceeding a specific threshold known as Nisab. This individual must have held this wealth for an entire lunar year (Hawl). The obligation applies to both men and women, provided their wealth reaches the Nisab value after deducting personal needs and immediate liabilities.

What Assets are Zakatable?

Zakat is applicable to various forms of wealth. Common zakatable assets include:

• Cash and Bank Balances: Money held in savings, checking accounts, or in hand.
• Gold and Silver: Jewelry, bullion, or other forms of gold and silver.
• Investments: Stocks, shares, mutual funds, and other financial instruments.
• Business Inventory: Goods held for trade or sale.
• Agricultural Produce: Certain crops and livestock (with specific rules).
• Rental Income: Net income from properties held for investment (after expenses).

Understanding Nisab and Hawl

Nisab: This is the minimum threshold of wealth that a Muslim must possess for Zakat to become obligatory. It is equivalent to the value of 87.48 grams of gold or 612.36 grams of silver. The monetary value of Nisab fluctuates daily with the market prices of gold and silver.

Hawl (Lunar Year): Zakat becomes due on zakatable wealth after it has been held for one full lunar year. The Hawl begins from the date an individual's wealth first meets or exceeds the Nisab threshold. Each year on this date, Zakat is calculated and paid on the current value of the zakatable assets.