Zakat Calculator

What is zakat?

Zakat is the third pillar of Islam: an obligatory due on specific wealth, for specific categories of people, at a specific time. In Arabic, zakat means growth and purification: it purifies the soul of the giver from greed and miserliness, purifies and blesses the wealth, meets the needs of the poor and needy, and strengthens the bonds of mutual support in the Muslim community. Allah the Exalted paired it with prayer in many places in His Book, indicating the greatness of its status.

﴿وَأَقِيمُوا الصَّلَاةَ وَآتُوا الزَّكَاةَ وَارْكَعُوا مَعَ الرَّاكِعِينَ﴾“And establish prayer and give zakat and bow with those who bow [in worship].”Surah Al-Baqarah: 43

"Islam is built on five: testifying that there is no god but Allah and that Muhammad is the Messenger of Allah, establishing prayer, giving zakat, Hajj, and fasting Ramadan."Agreed upon (al-Bukhari and Muslim)

The zakat calculator on the Mizan website helps you list your various zakatable assets, compare them with the religious nisab, and then accurately calculate the amount due, according to the position of the majority of jurists, while pointing out where valid scholarly differences exist.

The conditions that make zakat obligatory

Zakat is not due on all wealth, nor from every person; rather, certain conditions must be met, the principles of which the jurists agree upon:

1. Islam: zakat is an act of worship that is obligatory only on a Muslim.
2. Full ownership: the wealth must be owned by its owner with settled ownership, so that he can dispose of it as he wishes; there is no zakat on wealth that he does not truly own or cannot dispose of.
3. Reaching the nisab: the minimum amount of wealth on which zakat is due; whoever owns less than it owes no zakat.
4. The passing of the hawl: a full Hijri year (about 354 days) must pass while the nisab is owned, with the exception of crops and fruits, whose zakat is due on the day of harvest. You can determine the date of your Hijri zakat year precisely with the Hijri date converter.

Many jurists add that the wealth must be surplus to basic needs, such as one's home, clothing, tools of work and the vehicle in use; there is no zakat on these, however much they are worth, as long as they are for use and not for trade.

The nisab and the amount of zakat

The nisab for money is measured by gold or silver, which are the basis of the religious assessment:

Contemporary scholars differ on how to determine the nisab for money: some measure it by the gold nisab because it is closer to stable value and fairer in our time, while others measure it by the silver nisab because it is more beneficial to the poor and more cautious in discharging the obligation. The calculator lets you choose the nisab standard, and enter the price per gram in your country at the time of paying zakat.

Zakat on cash and bank accounts

Zakat is due on paper money and coins in all currencies, and on current bank balances, savings accounts and deposits, because they take the place of gold and silver as a medium of value. So you add up the cash you have on hand and what is in your accounts, combining them even if the currencies differ, after converting them into one currency. As for interest (riba) earned from accounts, it is not lawful wealth on which zakat is paid; rather, it should be disposed of in charitable causes without the intention of charity, as established by many scholars.

A practical and easy method is for the Muslim to set one day of the Hijri year as his zakat date, on which he looks at all the zakatable wealth he has and pays zakat on it, including what he acquired during the year; this is easier, more cautious and more beneficial for the poor.

Zakat on gold, silver and jewellery

Zakat is due on gold and silver when they reach the nisab, whether they are bullion, coins or savings, and the weight is calculated according to the pure carat: whoever has 21-carat gold, for example, converts its weight to the equivalent in 24 carat by multiplying it by 21/24.

Jewellery intended for personal use

The jurists differ about zakat on permissible jewellery that a woman wears for adornment: the majority of jurists, the Malikis, Shafi'is and Hanbalis, hold that there is no zakat on it, because it has become one of the needs in use, like clothing. The Hanafis and a group of scholars hold that zakat is obligatory on it if it reaches the nisab, based on the general wording of the texts. Whoever pays zakat on it as a precaution has taken the more cautious course. As for jewellery that is saved, intended for trade or hoarded, zakat is due on it by agreement. The calculator has an option to specify whether or not you want to include personal jewellery.

Zakat on shares

The ruling on shares differs according to the intention of their owner:

• Shares held for trading (buying and selling to profit from price differences): they are treated as trade goods, so zakat is paid on their market value on the day zakat becomes due, at a rate of 2.5%.
• Shares held as a long-term investment (to benefit from distributed dividends): many contemporary fiqh councils hold that their zakat is according to the share's portion of the company's zakatable assets (such as cash, goods and receivable debts), excluding fixed assets such as buildings and machinery. If the shareholder does not know this, some scholars hold that zakat is paid on the distributed dividends when received if a full year passes over them, while others hold that it is more cautious to pay zakat on the market value.

If the company itself pays zakat on behalf of its shareholders, the shares are not subject to zakat a second time, to avoid double payment.

Zakat on trade goods

Trade goods are anything held for sale for profit, such as merchandise, stock, real estate, cars and others. Zakat is due on them according to the majority of scholars: the merchant values his goods at the end of the year at the market price (the current selling price, according to the preferred view of many), adds the cash and receivable debts he has, and then pays 2.5% of the total. As for fixed assets that are not sold, such as the shop, shelves and machinery, there is no zakat on them. Whoever buys land to build a home for himself owes no zakat on it, unlike someone who buys it to sell at a profit.

Debts: those owed to you and those you owe

Debts owed to you by others

A debt owed to you by someone who is solvent, acknowledges it and is willing to pay (i.e. able to repay and admitting it) is called a receivable (good) debt, and the majority hold that zakat is due on it: its owner pays zakat on it every year along with his wealth, or, according to a differing view, when he receives it for the past years. As for a doubtful debt (owed by someone in hardship, who denies it or who procrastinates), no zakat is paid on it until it is received; then the scholars differ on whether zakat is paid for one year or a new hawl begins. There is latitude in the matter.

Debts you owe

Many jurists, such as the Hanafis and Hanbalis, hold that the debt a person owes is deducted from his zakatable wealth before the calculation, and if what remains falls below the nisab he owes no zakat; the Shafi'is, in their later view, hold that debt does not prevent zakat. Many contemporary scholars have chosen to deduct the debt that is due and payable during the year, or only the current year's instalments for long-term debts such as home financing, not the entire deferred debt.

How to use the zakat calculator

1. Enter the price of one gram of gold (24 carat) or silver in your local currency on the day you pay zakat, and choose the nisab standard.
2. Enter cash and balances: cash on hand and the balances of bank accounts and e-wallets.
3. Enter gold and silver: by weight and carat, and specify whether it is jewellery for personal use.
4. Enter investments: the value of shares held for trading, and the zakatable portion of long-term shares.
5. Enter trade goods: the value of merchandise and stock held for sale.
6. Enter debts: receivable debts owed to you, and debts you owe that are due.
7. Press "Calculate": to see the value of the nisab, the total zakatable wealth, whether it has reached the nisab, and the amount of zakat due.

A practical example of calculating zakat

Suppose the price of one gram of 24-carat gold is 300 currency units; the gold nisab is then: 85 × 300 = 25,500. A full year has passed for a person who owns the following:

The zakatable wealth (230,000) is greater than the nisab (25,500), so zakat is due: 230,000 × 2.5% = 5,750 currency units.

The eight categories of zakat recipients

Allah the Exalted Himself specified those entitled to zakat, so it may not be given to anyone outside these categories:

﴿إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ ۖ فَرِيضَةً مِّنَ اللَّهِ ۗ وَاللَّهُ عَلِيمٌ حَكِيمٌ﴾“Zakat expenditures are only for the poor and for the needy and for those employed to collect [zakat] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveller — an obligation [imposed] by Allah. And Allah is Knowing and Wise.”Surah At-Tawbah: 60

• The poor (al-fuqara'): those who have nothing or have less than half of what suffices them.
• The needy (al-masakin): those who have some of what suffices them, but not all.
• Those employed to administer it: those who collect and distribute zakat on behalf of the authorities.
• Those whose hearts are to be reconciled: those whose acceptance of Islam is hoped for, whose faith is to be strengthened, or whose harm is to be averted.
• Freeing captives (fi al-riqab): freeing slaves and those who have contracted to buy their freedom; some scholars also include ransoming Muslim prisoners.
• Debtors (al-gharimin): those in debt who are unable to repay debts incurred for something other than sin.
• In the cause of Allah (fi sabil Allah): jihad in the cause of Allah according to the majority; some contemporary scholars have broadened it.
• The wayfarer (ibn al-sabil): the traveller cut off from his wealth, even if he is wealthy in his own country.

Zakat may not be paid to one's ascendants (parents and grandparents), descendants (children and grandchildren) or wife, because the payer is obliged to maintain them. It is recommended to give it to needy relatives other than these, for it is both charity and maintaining family ties. To learn the rulings on Zakat al-Fitr, which differ from zakat on wealth, you can visit its dedicated page, and you will find more in the articles.