How to Calculate Zakat
Zakat is a foundational pillar of Islam, essential for every adult Muslim with the means to do so. It's about purifying one's wealth by supporting those in need, embodying growth and compassion. This act of giving is mandated for all mentally sound, adult Muslims who meet the minimum wealth threshold, known as the nisab. This principle is underscored in the teachings of the Qur'an, emphasizing the importance of aiding the less fortunate.
Take [O Prophet (saw)] from their wealth a charity in order to cleanse and purify them..
At Muslim Hands, the majority of our initiatives qualify for Zakat, enabling us to support the most vulnerable with your kind contributions. Figuring out the precise Zakat amount can be a challenging task, especially when accounting for assets like real estate or business investments. To simplify this process, Muslim Hands provides a Zakat calculator. Just enter your asset details, and it will instantly compute the Zakat you owe.
Zakat Nisab
To be eligible for Zakat, your net wealth must exceed the nisab threshold, equivalent to 87.48 grams of gold or 612.36 grams of silver. This wealth must have also been maintained above the nisab for one Islamic (lunar) year, known as Hawl. While many Muslims choose to fulfill their Zakat during the holy month of Ramadan, it is permissible to pay Zakat at any point throughout the year.
Given that the prices of gold and silver fluctuate, the nisab value is subject to change. We provide a real-time nisab value on our Zakat calculator to ensure accuracy in your Zakat calculations.
WHAT IS ZAKAT DUE ON?
Zakat must be paid on the money and property a sound-minded adult Muslim owns, including what's invested in businesses and real estate. This means adding together the value of these investments and any savings in the bank and cash you have at home to figure out how much Zakat is to be paid.
Here is the complete list of what Zakat is due on:
- Gold and silver (ornaments or jewellery)
- Cash held at home or in bank accounts
- Pensions
- Property owned for investment purposes
- Stocks and shares owned directly or through investment funds
- Money lent to others
- Business stock in trade and merchandise
- Agricultural produce
When calculating Zakat, any debt you owe should be deducted from your total wealth. This includes personal and business loans, which are not counted as part of your wealth and do not qualify for Zakat.
An Illustrated Guide to Paying Zakat
Working out how much Zakat to pay and how to pay it can be sometimes difficult and for that reason, we have created this illustrated guide that’s easy-to-follow and covers everything from why we give Zakat to who receives it and everything in between!
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Muslim Hands is an international aid agency and NGO working worldwide to help those affected by natural disasters, conflict and poverty. Muslim Hands USA is a 501 (c)(3) nonprofit organization (No. 27-4155655).