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Zakat is an Arabic word "Zakah" which literally means "to purify". Zakat is a charity, donation, almsgiving or a form of tax in Islam lavied on a person having a certain amount of wealth. It is obligatory on a Muslim person called "Sahib-e-Nisab" (having wealth of threshold). By paying zakat, a person can not only help needy but also purify his wealth. It applies 2.5% of a wealth of threshold/nisab accumulated for a whole lunar year.
Nisab is a minimum threshold of wealth, a Muslim must have accumulated for the whole lunar year on which zakat becomes due. In other words, it is a certain amount of wealth or assets exceeding which zakat becomes obligatory and the wealth holder being Muslim, must have to pay zakat which is 2.5% of his total wealth meeting the nisab value.
Nisab is determined by calculating the value of gold and silver which is given as under:
87.48 grams of gold, and
612.36 grams of silver.
This is the most common standard used. The value may slightly vary according to some scholars as they calculate nisab on 85 grams of gold and 598 grams of silver but the difference is minor.
Since silver is cheaper than gold and zakat becomes due earlier than gold, therefore, scholars emphasize to pay zakat on silver to circulate zakat in more needy hands to contribute social welfare for the prosperity of less fortunate.
The exact monetary value of zakat depends on current market value of gold and silver, hence, it is important to keep in touch with current market prices to calculate zakat. Our zakat calculator, uses current live currency and gold, silver rates to determine your zakat. Hence, you don't need to look for current prices separately.
For separate calculation of Nisab, please visit our Nisab Calculator
To manually calculate zakat, create a list of all your wealth and assets. These may include cash, gold, silver, business property, amount in bank accounts, stocks and investments. Sum up all the assets.
Calculate your liabilities such as loan, debts, mortgage and then subtract your liabilities from your total assets. Compare the results values with nisab and if the total assets exceeds nisab, you are liable to pay zakat and if it doesn't exceed nisab, you are not liable to pay zakat.
If your net wealth exceeds zakat, calculate zakat with following formula:
Zakat due = 2.5% x net wealth
Keep in mind the current nisab rates while calculating your zakat or use our zakat calculator which can automatically calculate zakat based on live currency exchange and metal rates.
Let's take an example for clear understanding.
Example:
Here we will calculate in dollars, you can choose your own currency but the process will remain the same.
Suppose, you have the following assets:
Cash: 12000 $
Gold (current value): 2000 $
Other assets value: 3000 $
Sum of all assets=17000 $
Now, determine liabilities:
Liabilities (Loan): 1000 $
Net assets= total assets - liabilities
Net assets=17000-1000
Net assets=16000$
Our net assets are 16000$.
Now, compare net assets with nisab:
Assume, nisab at current value of gold or silver is 400$
16000$ is greater than 400$, hence, you are liable to pay zakat.
Let's apply the formula:
Zakat due = 2.5% x net assets
Zakat due = 0.025 x 16000$
Zakat due = 400$
In this example, Zakat of 400$ is obligatory.
For separate calculation of zakat on cash, please visit our Zakat on Cash CalculatorFor separate calculation of zakat on Bank Accounts, please visit our Zakat on Bank account Calculator
For separate calculation of zakat on business assets, please visit our Zakat on business assets Calculator
A Muslim adult having sound mind and wealth equal or more than Nisab is obligated to pay zakat. Irrespective of the gender, whether the adult is male or female, and posses wealth such as cash, gold, silver, business assets and others worth of which meets or exceeds the Nisab. The wealth should be in possession of that adult for one whole Islamic year which is called the lunar year.
The person who is not in the sound mind, or elder who does not reach nisab value and children are not obligated to pay zakat.
Zakat can only be given to specific categories of people (Masarif al-Zakat) as mentioned in Surah At-Tawbah (9:60) of the Qur'an:
“Zakat expenditures are only for the poor and the needy, and those employed to collect it, and for bringing hearts together (for Islam), and for freeing captives (slaves), and for those in debt, and for the cause of Allah, and for the stranded traveler – an obligation (imposed) by Allah. And Allah is Knowing and Wise.” (Surah At-Tawbah 9:60)
Based on this verse, there are following eight categories (Masarif al-Zakat) who can receive zakat:
Wealthy individuals who have sufficient means.
Direct family members such as parents, children, or spouses (one cannot give zakat to them).
Non-Muslims (except those under the category of Mu’allafatul-Qulub).
Descendants of Prophet Muhammad (PBUH) (Banu Hashim and their dependents).
Zakat has significant importance in Islam as described in both the Qur'an and Hadith. Following is a description of its importance in view of Quranic references, Hadith and Five Pillars of Islam.
Zakat is a source of spiritual purification. By giving a minor portion of earnings, a Muslim can purify his whole wealth.
It is also the source of Social Justice and Economic Balance. By giving zakat, wealth circulates within the community which helps to reduce poverty and gap between the rich and poor. In this way a. Equitable society is developed where resources are shared.
The act of paying zakat reminds Muslims that wealth is granted by Allah which should not be accumulated into one hand rather it should be redistributed in the needy community in order to develop a strong shared society. It creates solidarity among the society.
The concept of zakat is mentioned approximately 32 times in Quran reflecting its importance throughout the Islamic revelation.
Quranic Verses related to zakat:
Surah Al-Baqarah (2:43): “And establish prayer and give zakat...”
Surah Al-Baqarah (2:110): “Establish prayer, give zakat, and whatever good you send forward for yourselves…”
Zakat is one of the Five Pillars of Islam, which are the foundation of a Muslim’s faith. The Five Pillars include:
Being part of pillars shows its important role in the spiritual and communal life of a Muslim.
Several authentic Hadith emphasize the importance of zakat:
A well-known Hadith states, “Islam is built on five [pillars]: testifying that there is no god but Allah and that Muhammad is His Messenger, establishing prayer, paying zakat, performing the pilgrimage to the House, and fasting in Ramadan.” This Hadith clearly places zakat as a core component of the Islamic faith.
The Prophet Muhammad (peace be upon him) is reported to have said, “Whoever pays the zakat on his wealth, his sins will be purified…” This Hadith reinforces the idea that zakat cleanses the soul and wealth.
While zakat is obligatory for many, there are clear guidelines regarding exemptions as under:
Individuals whose total wealth does not exceed the nisab (the minimum threshold, based on the current market value of either gold or silver) are not required to pay zakat.
Those who are financially incapable or living in extreme poverty are exempt from the obligation.
Certain individuals, such as children, the elderly, or those who are mentally incapacitated, are typically not held liable for zakat if they do not manage their own finances.
A person cannot pay zakat to his immediate family members such as parents, brother, sister, wife and children etc.
The main feature of our zakat calculator is that it fetches live currency rates and metal rates such as gold, silver. User don't need to enter currency or metal rates manually. User only selects currency and it automatically fetches live rates.
The layout of the calculator is simple and intuitive. Calculations performed are accurate based on actual formulas. It is powerful and robust enough to calculate instantly.
No registration or subscription is required. It is free and online. Anyone can access and use the calculator from anywhere in the world. No login is required.
Our zakat calculator is safe to use and we care for your security. We don't use any storage for user's data. Every task is performed at the end of user interface.
Now, let's discuss how to use the zakat calculator.
For separate calculation of zakat on Gold only, please visit our Zakat on Gold CalculatorFor separate calculation of zakat on Silver only, please visit our Zakat on Silver Calculator
To use our zakat calculator, first you need to understand the interface of our calculator.
The upper section of the calculator displays live rates of gold, silver and currency exchange rates in the selected currency. It also displays current nisab values of gold and silver in selected currency. All these rates are displayed when user selects required currency.
Below this section, a drop-down option, in which all the currencies of the word are available. A user can choose desired currency and all the rates in the upper section will be displayed and all the calculations will be made in the selected currency.
Below the currency drop-down, there is an asset form where a user can enter assets. It contains multiple textfields for user input. The first field is for entering gold in grams, second for silver in grams. Users enter these values in grams and the calculator performs calculations based on its backend formula.
Below these fields, there are three more fields that are cash and other assets, business assets and liabilities (loan, debt, mortgage or any other). Users are required to enter desired values and hit the calculate button which performs calculations instantly and gives you results in a table just below along with a graph representing percentage values of the results. The clear button clears all the values in the fields.
Use our zakat calculator which offers dynamic calculations with live rates of gold and silver and current currency exchange rates. This calculator is online and free of cost.
For separate calculation of zakat on property, please visit our Zakat on property CalculatorFor separate calculation of zakat on savings, please visit our Zakat on saving Calculator