Zakat Calculator & Method to Calculate Zakat

Zakat Calculator

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What is Zakat?

Zakat, one of Islam’s basic and pillar elements, demands Muslims to share specific amounts of their money with deserving people. Zakat is a financial term in Islam. Zakat itself has a meaning of “Purifying” and ” Growth.” Allah teaches Muslims to purify our wealth by spending for the poor. The essence is to help the poor and money circulation in society.

Eligibility for zakat

Not all Muslims are confined to pay Zakat. It’s a mandatory obligation devoted to those who can afford or have a certain amount of money. Zakat is regarded as worship, and Islam specified a nisab for Zakat.

3 Conditions of Zakat

Zakat falls due when the following conditions are fulfilled.

  1. You are a Muslim.
  2. Your wealth meets the specific criteria (nisab).
  3. One lunar year is passed after paying one Zakat.

Nisab for Zakat

Gold And Silver are used as thresholds for Zakat. Islam guided its believers on how to pay Zakat. For this purpose, Islam set criteria called “nisab.” Zakat became Farz in 2nd Hijri. Jibrail revealed verses of The Quran to Prophet Mohammad(PBUH), “[Al Qur’an, 2:254] O you who believe; you shall give to charity (zakat-ul-mal)from the provisions we have given to you, before a day comes where there is no trade, no nepotism, and no intercession. The disbelievers are the unjust.”

Reference: (Al Qur’an, 7:156; 9:71; 22:78; 24:56 and many more).

Zakat Nisab for Gold

If a person possesses 87.48 grams (7.5 tola) of Gold or money equivalent to a specified amount of Gold, he is eligible for Zakat. He has to pay 2.5% of his wealth as a Zakat once a lunar year.

Zakat Nisab for Silver

If a person have 612.36 grams (52.5 tola) of Silver or money equivalent to a specified amount of Silver, he is eligible for Zakat. He has to pay 2.5% of his wealth as a Zakat once a lunar year.

Calculate Zakat

The standard Zakat rate is 2.5% of an eligible individual’s total wealth. Gold and Silver are thresholds. Therefore, we will calculate Zakat amount according to the current price of these metals.

Zakat on Gold

Find the latest Gold price and calculate the total amount of 7.5 Tolas Gold. If your savings are more than or equal to the amount, you are eligible for Zakat. 2.5% is the Zakat percentage of the total amount.

Zakat Calculation

Calculation of Zakat on Gold

suppose Gold rate= Rs. 210000

Zakat eligibility amount= 7.5*210000=1,575,000

suppose your savings= 2Million

Zakat = Total amount * 2.5%

= 2000000 * 0.025

= Rs. 50000

Zakat on Silver

Find the latest Silver price and calculate the total amount per 52.5 Tola Silver. If your savings are more than or equal to the amount, you are eligible for Zakat. 2.5% is the Zakat percentage of the total amount.

Zakat calculation

Calculation of Zakat on Silver

suppose 1 tola Silver rate = Rs. 2500

Zakat eligibility amount= 52.5*2500=131,250

suppose your savings= 2Million

Zakat = Total amount * 2.5%

= 2000000 * 0.025

= Rs. 50000

Zakat Calculator 2023

8 Recipients of Zakat (Masarif e Zakat)

The Quran mentions 8 recipients who can receive Zakat (Masarif e Zakat).

  1. The poor  (Fuqara).
  2. The needy (Masakin).
  3. Zakat administrators (Amilin).
  4. Debtors (Al-Gharimin).
  5. Those whose hearts are to be reconciled (new Muslims and friends of the Muslim community).
  6. Slaves and captives.
  7. Travelers in Need (Ibn al-Sabil).

Objects excluded from Zakat

Islam defines the proper regulatory system for Zakat. According to rules defined by Islam, Some things are excluded from zakat. These exclusions are important to understand when calculating Zakat. Here are the key items and assets that are typically excluded from Zakat:

Zakat on Property

Zakat on property, particularly real estate, is a complicated and debatable issue in Islamic ordinances (Masail e Zakat). Zakat on property applies in certain conditions:

Zakat on Personal Residence

The property where you are living does not come in the Zakat category. Zakat is not applied to your residence. 

Zakat on Rental Property

If any property is for rental objectives and it is generating income. The income you receive from the property will be considered as part of your wealth, and you should calculate and pay Zakat on the income you earn from the rent.

Zakat on Commercial Property

Any property for commercial or investment purposes, such as real state land or plots, is subject to Zakat. Still, it is a debatable issue. Different scholars hold different opinions on this topic.

Zakat on Jewelry for Personal Use 

Jewelry and ornaments for personal use are generally excluded from Zakat. These are daily used items rather than investments or wealth.

Zakat Business Stock

If you have a business, the inventory or stock you hold for trade is not subject to Zakat. Zakat is evaluated on the net profit generated from the business, not on the trading items.

Zakat on Agricultural Produce

Agricultural land resulting in income or generating profit from its sale may be subject to Zakat. However, Crops grown for Personal use are generally not subject to Zakat.

Livestock Used for Personal Purposes 

Animals such as cows, goats, and sheep used as personal assets (e.g., for milk, transportation, or labor) are excluded from Zakat.

Items Held Temporarily for Resale

If you buy items with the intention of resale, they are not applicable to Zakat until they are sold. After selling, the profit from the sale may be subject to Zakat.

Zakat on borrowed Money 

Money that you have borrowed from someone is not part of your Zakatable wealth. Only the amount you actually own is subject to Zakat.

Frequantly Asked Questions

Nisab is a criteria or a threshold set for Zakat. It’s an eligible amount for Zakat. Zakat nisab is the amount equivalent to 7.5 Tolas Gold or 52.5 Tolas Silver.

Calculate your Savings if it is more than or equal to nisab, and find 2.5% of that amount. It is a payable amount for Zakat.

Zakat becomes due after completing a full lunar year on your qualifying wealth. If You have paid Zakat before, the next Zakat is obligatory after completing a year of the first one.

2.5% Zakat is paid on Gold’s value.

Personal used items such as home, furniture, cars, food, and clothes are excluded from Zakat.

See More: How to check purity of Gold

Conclusion

Zakat on gold and silver is an essential aspect of Islamic fundamentals. It regulates redistribution, money circulation, etc. Allah has assigned responsibility to Muslims with good incomes to care for low-income people. Zakat promotes economic justice and social welfare within the Islamic community. It is highly recommended to consult a knowledgeable religious person or financial advisor to calculate Zakat.