Zakat Calculator

Assets

Cash and liquid investments are subject to Zakat.

You should include cash in all your bank accounts, in your wallet and under your mattress!

If interest has been earned on your liquid investments, then all of it should be given to charity and only the principal invested amount should be noted for Zakat purposes.

Cash and liquid investments are subject to Zakat.

You should include cash in all your bank accounts, in your wallet and under your mattress!

If interest has been earned on your liquid investments, then all of it should be given to charity and only the principal invested amount should be noted for Zakat purposes.

In relation to your business, you should include the following as Zakatable assets below where relevant.

  • Cash
  • Goods for Sale* (Wholesale Price or Retail Price)
  • Inventory* (Wholesale Price or Retail Price)
  • Work in progress (at cost)
  • Raw materials (at cost)

*We follow the opinion that Zakat is due upon the wholesale price of your inventory or goods for sale.

What do we mean by Wholesale price? If someone wanted to buy this inventory or your goods in bulk what price would you sell it to them for. This would be liable portion of your Zakat and if you pay lower than this that you are underpaying your Zakat.

If however you decide to pay on the Retail price then you are going above the requirement of whats liable and doing ihsaan as many scholars have stated as your Zakat will benefit more people as you are paying more.

If you have business liabilities to offset against these assets, then you will be able to enter these in the next section.

Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity.

Please only include business assets in line with your % ownership of the business.

Gold ?

Gold price last update from GoldBroker at March, 30th 2021, 12:00 PM

Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat.

However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not.

If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.

Gold and silver can be valued at its resale value by a jeweler or you can multiply the amount of grams (of gold or silver) you own by the current market value.

IDRF takes the opinion that Zakat should be paid on Gold and Silver regardless of whether it is used or not.

Silver ?

Silver price last update from GoldBroker at March, 30th 2021, 12:00 PM

Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat.

However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not.

If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.

Gold and silver can be valued at its resale value by a jeweler or you can multiply the amount of grams (of gold or silver) you own by the current market value.

IDRF takes the opinion that Zakat should be paid on Gold and Silver regardless of whether it is used or not.

If you possess any other cash equivalent or liquid assets that are not mentioned above, please add the dollar value of these here. This could include (but not limited to)

  • the face value of your cryptocurrency holdings
  • other currencies held in offshore accounts which you did not include above
  • assets belonging to a family member on whose behalf you are paying Zakat

The house in which you live is not subject to Zakat.

If a property or other fixed asset is purchased with the express intent to resell, then the entire sale value of the property is subject to Zakat.

Remember this rule does not apply to the house you live in yourself. This is for additional properties you may own or possess.

If you don’t have enough cashflow to pay the Zakat due if marked for sale then you should pay Zakat on the property once you have the funds available and Allah knows best.

If it is a rental property then you only have to pay Zakat on the rental income minus the expenses related to the rental income. Remember, you will only pay Zakat on what you currently possess in cash or liquid assets. Whatever has already been spent has no Zakat on it.

If you have no intention with a property or fixed asset then there is no Zakat on it until it falls into one of the other options mentioned above.

Liabilities

Certain liabilities can be deducted from your Zakatable assets.

These include outstanding or overdue living expenses such as rent payments, utility bills and debts.

For long-term debt, such as mortgages or student loans, only the non-interest or principal portion of the upcoming lunar year’s worth of payments can be deducted for Zakat calculation purposes.

If payments are not being paid on the long-term debt, then it should not be deducted from your zakatable assets.

Certain liabilities can be deducted from your Zakatable assets.

These include outstanding or overdue living expenses such as rent payments, utility bills and debts.

For long-term debt, such as mortgages or student loans, only the non-interest or principal portion of the upcoming lunar year’s worth of payments can be deducted for Zakat calculation purposes.

If payments are not being paid on the long-term debt, then it should not be deducted from your zakatable assets.

Certain liabilities can be deducted from your Zakatable assets.