Zakat Calculator - Calculate Your Islamic Charity Obligation

Zakat is one of the Five Pillars of Islam, an obligatory annual charitable contribution that purifies wealth and helps those in need. Every adult, sane Muslim who possesses wealth above the Nisab threshold (equivalent to 87.48 grams of gold or 612.36 grams of silver) for one complete lunar year must pay 2.5% of their eligible wealth as Zakat. It applies to savings, gold, silver, business inventory, stocks, and other forms of wealth. Children and those whose wealth is below the Nisab are exempt, though voluntary charity (Sadaqah) is always encouraged.

The Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It equals the value of 87.48 grams of gold (approximately 3 ounces) or 612.36 grams of silver (approximately 21.5 ounces). Most contemporary Islamic scholars recommend using the silver Nisab for calculation, as it results in a lower threshold, enabling more Muslims to pay Zakat and benefiting more recipients. Our calculator automatically computes the current Nisab value in your chosen currency based on real-time precious metal market prices. Your wealth must reach this threshold and remain at or above it for one complete lunar year (Hawl) before Zakat is due.

Zakatable assets include: (1) Cash and bank savings in all currencies, including checking and savings accounts; (2) Gold and silver held as investment (personal jewelry has different rulings based on Islamic schools of thought); (3) Stocks, shares, and investment portfolios (must be Shariah-compliant); (4) Business inventory and trade goods intended for sale; (5) Agricultural produce (with specific rates); (6) Livestock that grazes freely; (7) Money owed to you that you expect to collect; (8) Accessible retirement funds and pensions. Personal items like your primary residence, personal vehicles, clothing, furniture, and tools of trade are exempt from Zakat.

Yes, according to the majority of Islamic scholars, you can deduct immediate, pressing debts from your zakatable wealth before calculating the 2.5% Zakat rate. Deductible debts include credit card balances, personal loans due within the year, unpaid bills and utilities, business payables, and other obligations requiring immediate settlement. However, long-term debts like mortgages are treated differently - some scholars allow deducting only the portion due within the current year, while others don't permit mortgage deductions since the debt is secured against an exempt asset (your home). Our calculator allows you to enter immediate debts, following the majority opinion focused on near-term obligations.

The standard Zakat rate is 2.5% (or 1/40th) of your total qualifying wealth that has been held for one complete lunar year (Hawl). This rate applies to cash, gold, silver, investments, and business assets. Agricultural produce has different rates: 10% (Ushr) for rain-fed crops and 5% for irrigated crops. Discovered treasure (Rikaz) requires 20% Zakat. The Zakat year is lunar, approximately 354 days, not solar. Many Muslims choose to pay Zakat during Ramadan due to increased rewards, but it's due whenever your personal Hawl year completes. You can pay the full amount at once or distribute it throughout the year, though paying at the Hawl completion is more common.

For investment gold and silver, calculate Zakat at 2.5% of the current market value if you've held it for one lunar year and your total wealth exceeds the Nisab. Personal jewelry has different rulings: the Hanafi school considers all gold and silver jewelry zakatable at 2.5%, while Shafi'i, Maliki, and Hanbali schools generally exempt jewelry used for personal adornment. Gold coins, bars, and investment pieces clearly require Zakat. To calculate: determine the current market value of your gold and silver (check local gold dealers or online precious metal markets), multiply by 2.5%, and include this in your total Zakat payment. Our calculator simplifies this by allowing you to enter the total value directly.

Yes, business inventory intended for sale requires Zakat calculation based on its current market value, not the cost price. This includes raw materials, work-in-progress, and finished goods ready for sale. Conduct an annual stock-take when calculating Zakat, valuing all saleable items at current market prices. However, fixed business assets like machinery, vehicles, buildings, tools, and equipment used in production are NOT subject to Zakat - only the inventory and trade goods require Zakat payment. If you run a business, also include business cash reserves, accounts receivable that you expect to collect, and any other liquid business assets in your Zakat calculation.

Modern Islamic finance scholars generally agree that stocks and shares are zakatable, though methodologies differ. The simpler approach, which most Zakat calculators use, applies the 2.5% rate to the total market value of your halal stock portfolio on your Zakat due date. Some scholars argue Zakat should only apply to the zakatable assets held by the company proportional to your shares, but this requires complex analysis. For mutual funds and investment accounts, the same principle applies. Ensure your investments are Shariah-compliant before including them in Zakat calculation - avoid companies dealing in alcohol, gambling, interest-based banking, pork, or other prohibited activities.

This is a contemporary issue with varying scholarly opinions. The predominant view is that if you have full access and control over retirement funds, they're subject to Zakat calculation at the standard 2.5% rate. However, if access is restricted until retirement age with penalties for early withdrawal, some scholars say Zakat becomes due only when funds become accessible. A cautious approach, which ensures fulfilling your obligation, is to include accessible retirement funds in your annual Zakat calculation. For employer-matched contributions or pension funds you cannot access, consult a qualified Islamic scholar for specific guidance based on your situation and the school of thought you follow.

Yes, contemporary Islamic finance scholars increasingly address cryptocurrency in Zakat rulings. Since cryptocurrencies like Bitcoin, Ethereum, and others function similarly to currency or tradeable assets, most scholars rule they're zakatable at the standard 2.5% rate when they reach the Nisab threshold and are held for one lunar year. Calculate Zakat on cryptocurrency based on its market value in your local currency on your Zakat due date. Include digital assets in your comprehensive Zakat calculation if they constitute a significant portion of your wealth. However, ensure your cryptocurrency activities align with Islamic principles - speculative trading and gambling-like activities should be avoided. NFTs and other digital tokens should be evaluated based on their underlying nature and use case.

If you're from a family or community that traditionally follows a specific madhab, it's generally recommended to continue that tradition for consistency. The four major Sunni madhabs (Hanafi, Shafi'i, Maliki, Hanbali) are all valid and respected. If you don't have a family madhab tradition, consider consulting with local Islamic scholars or institutions to understand which madhab is predominant in your region. Many contemporary scholars also recommend following qualified scholars who can guide you based on your specific circumstances, regardless of strict madhab adherence. The important principle is consistency - once you choose an approach for Zakat calculation, maintain it year after year rather than switching for convenience.

Your primary residence is not subject to Zakat, regardless of its value, as it fulfills a basic need. However, rental properties and investment real estate have different rulings. According to most scholars, you pay Zakat on the rental income you receive (if it meets Nisab and has been held for one lunar year), not on the property's market value. If you purchased property specifically for resale as a business investment, then treat it as trade goods and calculate Zakat on its current market value at 2.5%. Land or property held for future personal use or uncertain purposes typically isn't subject to Zakat. For complex real estate portfolios, consult an Islamic finance advisor to determine the correct Zakat treatment.

Zakat becomes obligatory immediately once your Hawl year completes and your wealth exceeds the Nisab threshold. Ideally, you should pay it promptly. However, if you're experiencing genuine financial difficulty, Islamic scholars allow payment in installments over a reasonable period, provided you have sincere intention to fulfill the obligation. You cannot delay Zakat payment simply for convenience or investment purposes. If you have assets that are difficult to liquidate (like property or business inventory), you may need to sell some assets or take a temporary loan to fulfill your Zakat obligation on time. Remember that Zakat is a right of the poor and must be taken seriously. If you repeatedly cannot pay Zakat, you should reassess whether you truly meet the Nisab threshold after accounting for essential expenses and debts.

You cannot give Zakat to your own parents, grandparents, children, grandchildren, or spouse, as you're already responsible for their basic maintenance. However, you CAN give Zakat to your siblings, aunts, uncles, cousins, in-laws, and other relatives if they fall into one of the eight eligible categories mentioned in the Quran (9:60). In fact, giving Zakat to qualifying relatives is often preferable as it combines the reward of Zakat with the reward of maintaining family ties. For example, if your brother or sister is in financial need, they may be eligible recipients. The key criterion is that they must genuinely qualify as Zakat recipients (poor, needy, in debt, etc.) and you must not be legally responsible for their maintenance.

Zakat is obligatory (fard) on every eligible Muslim once specific conditions are met: having wealth above the Nisab threshold for one complete lunar year. It's one of the Five Pillars of Islam and must be calculated precisely at 2.5% of qualifying wealth. Zakat can only be given to specific categories of recipients defined in Quran 9:60. Sadaqah, in contrast, is voluntary charity that can be given anytime, in any amount, to anyone in need, including non-Muslims. Sadaqah has no minimum threshold or specific rate. Both purify wealth and bring immense spiritual reward, but Zakat is a religious obligation whose non-payment is a major sin. Many Muslims pay both their obligatory Zakat and additional voluntary Sadaqah throughout the year. Zakat should be paid from your wealth, while Sadaqah can also be given through good deeds, kind words, or any beneficial actions.