Zakat Calculator

Using the Zakat Calculator (Steps 1–5)

SabirWrites allows you to easily calculate your Zakat in multiple currencies in just 5 steps. First step, read about the tool calculating system, which is fully compliant with Islamic principles. If you want to calculate your zakat with gold nisab or with silver. 

Add the price of gold or silver per gram in the gold input and silver in the silver input, equivalent of 87.48 grams (7.5 tola) of gold and 612.36 grams (52.5 tola) of silver.

Step two: fill the cash section, add the cash in hand & in the bank, and cash deposited for future (e.g. Hajj), Cash given out in loans, Investments, shares, and pensions. 

Step 3: Gold and Silver, add the value of your gold and the value of silver. 

Step 4: Liabilities, Borrowed money, Credit, Salary due to employees, Taxes, Rent, and bills due. 

Step 5: Trade Goods, add the Value of the stock. And this online tool will calculate your total net worth with 2.5% percent and show the result, below your TOTAL NET WORTH and PAYABLE ZAKAT.

What is Zakat?

Zakat is an obligatory (Wajib) form of charity, donating a fixed  2.5%  percentage of their net wealth to needy people. It is one of the five pillars of Islam, and eligible Muslims are required to pay zakat on their net wealth to poor people. 

What is Nisab?

In Islam, nisab refers to paying the minimum amount, 2.5% of their wealth, that makes a person liable to pay zakat. Zakat is the third pillar of Islam. Muslims must understand Nisab, as it determines the minimum wealth on which Zakat becomes obligatory. 

• • • Purpose: In Islam, nisab acts as a financial threshold for Zakat, a mandatory form of charity. It determines when Zakat becomes obligatory. 
    • Calculation:  In Islam, Nisab is traditionally set by the value of gold or silver.
    • Gold: 87.48 grams  (7.5 tola)
    • Silver: 612.36 grams  (52.5 tola)   
    • Determining the value: determining the nisab cash with gold or silver with the current market price.
    • Which standard to use: Using the best standard, counting the nisab with silver, recommended by many scholars. Because it has a lower threshold allows more people to pay zakat.
    • Obligation: if a person is saving cash and assets exceed the Nisab for a full lunar year, they must pay Zakat.

What are the Benefits of Zakat?

Zakat is an act that ends the hunger and thirst of the needy and poor people. Zakat, by the command of Allah Subhanahu wa Ta’ala, makes a person humble. In Islam, Zakat is given as charity, in which 2.5% of one’s wealth is given to the poor.

Zakat means purification and growth. In Islam, it helps rich people to come closer to the poor and support them through Zakat.

Is Zakat on Income or Savings?

Zakat is applied to both income and savings when the savings or income reach an amount equivalent to 612.36 grams of silver (52.5 tola) or 87.48 grams of gold (7.5 tola). When this amount is reached, Zakat becomes obligatory.

If a child has gold or silver more than the Nisab amount or has cash, Zakat is not obligatory on that child. When the child becomes an adult, then he can give Zakat.

How to Calculate Zakat on Cash?

Calculating Zakat on cash if you have cash exceeding Nisab, and have some money in the bank, and have some gold and some silver, and also have some money for employees’ salaries and debts. So, calculate your Zakat without debts and without employees’ salaries. Combine your gold price, silver price, and cash, and calculate Zakat in the lunar year.

Calculating your own Zakat. If you have some debts, calculate your Zakat by subtracting this year’s debt installment from your personal cash and then calculate Zakat.

How to Calculate Debts and Liabilities for Zakat?

To give Zakat, you should subtract your debts and liabilities (the amounts that must be paid soon). Then calculate your Zakat according to the Nisab. 

Who are the Recipients of Zakat?

Zakat should be given to the needy, poor, and people who need help. It should be given to those who free slaves and to Muslim workers. Zakat is for helping poor people, those who have debts, those who work for Allah’s cause, and travelers.

This is prescribed by Allah; Allah is All-Knowing and All-Wise. (Quran 9:60)

Here are seven categories of people to give zakat.

• • • The poor 
    • The needy (Masakeen)
    • Collectors of Zakah 
    • The cause of (freeing) the slaves (Ar-Riqaab)
    • Debtors (Al-Gharimeen)
    • The way of Allah SWT (fi Sabilillah)
    • Wayfarer (Ibn-us-sabil)

Who Should Pay Zakat?

Who pays Zakat? A Muslim who is an adult and has gold, silver, or cash exceeding the Nisab must pay Zakat.

• • • Major (Baligh)
    • Sane

If he has net wealth above the Nisab, he must pay Zakat.

Which Assets are Subject to Zakat?

For Zakat, the obligatory assets include gold, silver, cash, other inventory stock, and other investments. Other valuable productive assets, like livestock and receivable debts, are also part of it

Zakat will not apply to your factory building and company building; these are not subject to Zakat because they are sources of generated income. Zakat will be applied on the generated revenue, excluding the debts you need to pay this year and liabilities like employees’ salaries, bills, etc.

Zakat is also applied in agriculture, including crops and other agricultural outputs, and also on animals like cows, sheep, goats, and camels.

What is not Liable for Zakat?

Zakat does not apply to personal use items, such as cars, residences, and buildings. Machinery and fixed assets of a business are generally not subject to Zakat.

Monetary and Financial Assets

• • • Gold and Silver: Includes personal jewellery and silver that exceeds the nisab limit.
    • Cash and Savings: Personal cash and savings amounts that exceed the nisab.
    • Investments: Mutual funds, bonds, stocks, and retirement plans are different ways people invest their money. In Islam, these should follow Shariah rules to ensure the money is earned in a halal (lawful) way.
    • Cryptocurrency: Also includes digital money like Bitcoin and other tokens that follow Shariah rules, as long as they can be used easily.

When can Zakat be Paid?

You should pay Zakat once a year when your net wealth reaches at least the nisab limit. After completing one full lunar year, people calculate Zakat and can pay it anytime after the year is complete. Most of the time, people pay their Zakat during Ramadan.

You can pay Zakat only after one full year has passed. If your income reaches the nisab level in 11 months and 20 days, you cannot pay Zakat yet.

Zakat becomes obligatory only when one full year has passed since your net wealth reached the nisab limit. After the full year is completed, you become eligible to pay Zakat.