Zakat Calculator

Zakat is the third pillar of Islam. It signifies the amount of wealth a Muslim pays to the poor and less privileged people. Zakat is a compulsory act of worship and signifies the responsibility and duty the richer have towards those in need. Literal meaning of the word Zakat is ‘to cleanse.’ Muslims believe that paying Zakat purifies their wealth and pleases Allah SWT.

Nisab is a term that denotes the minimum amount of wealth Muslims must have before Zakat becomes obligatory upon them. They are required to donate 2.5% of their total wealth to those in need.

Nisab was set by Prophet Muhammad (صلی اللہ علیہ وسلم) at 20 Mithqaal (مثقال) of gold or 200 dirhams of silver. This is the equivalent of 87.48 grams (7.5 tola) of gold and 612.36 grams (52.5 tola) of silver, respectively.

Important Note: If someone possesses only gold, then the Nisab level for gold (87.48 grams) must be used. However, if a mixture of assets are possessed (like 1 or 2 tola gold, 10 tola silver, 5 thousand rupees etc.) then the (lower) silver Nisab level (current value of 612.36 gram silver) must be used.

Zakat brings one closer to Allah SWT. As an obligatory act of charity, it ensures that the poor and needy are protected from deprivation, hunger and financial insecurity. Zakat not only benefits those in need but also brings countless blessings to the ones who pay it. It cleanses our wealth, wipes away minor sins and purifies heart and soul from stinginess.

Here are the eight categories of recipients of Zakat:

• The poor (Fuqara)
• The needy (Masakeen)
• Collectors of Zakat (Al-‘Aamileen)
• Friends of the Islamic community and/or convert Muslims (Al-Mu’allafatu-Al-Quloob)
• The cause of (freeing) the slaves (Ar-Riqaab)
• Debtors (Gharimeen)
• The way of Allah SWT (fi Sabilillah)
• Wayfarer (Ibn-us-sabil)

Zakat must be paid by the one who is:

• Muslim
• Major (Baligh)
• Sane
• Owner of wealth, above the level of Nisab (Sahib-un-nisaab)

If all the above apply, you have to pay 2.5% Zakat on all of your savings and other applicable assets.

It is not obligatory to pay Zakat on every asset. Only those assets that have the potential of growth or increase are subject to Zakat. These assets may be broadly classified as follows:

• Trading Assets.
• Cash & Cash Equivalent (like prize bonds, travellers’ cheques etc.)
• Gold and Silver
• Livestock (goats, sheep, cows, and camels). Nisab for this is different.
• Agricultural output (called Ushr)

Only the balanced value of these assets at the end of the year is subjected to Zakat. No Zakat is obligatory on the amount spent over the whole year.

Zakat only becomes obligatory once a full lunar year has passed, providing that your qualifying wealth has been held for one full year. Your Zakat year, therefore, starts on the date your wealth first equaled or exceeded the Nisab and should be calculated on that date for each subsequent year.

Although you can give Zakat at any time of year many Muslims choose to pay their Zakat during the Holy month of Ramadan. This is because the rewards and blessings of giving in this month are far greater than at any other time of the year.

You may not send your Zakat anywhere outside your locality until you are certain that there is absolutely no need for it. You are obligated to give back to the locality you live in before you take that money elsewhere. The only exception to this is if you are sending money to your family members.

Yes, you may pay your zakat for next year in advance along with this year. However, if your earnings and savings change so that you owe more, you will have to pay the difference later.

You should look back to your balance statements and estimate your liability for the past years, then pay for those years.

Zakat-al-Fitr is paid in expiation for the sins and mistakes we commit during Ramadan. It is paid as 2.5 kilos or 5 pounds of wheat, dates, rice, etc. You may pay the cash value of rice if you like. The cash value this year $10.00 is per person. Your Islamic Center will act as your agent in distributing to the poor.