Zakat Calculator

Understanding Zakat in Islam

Zakat is one of the Five Pillars of Islam — a compulsory form of charity designed to purify wealth, promote social justice, and help those in need. It is both a spiritual duty and a financial obligation for eligible Muslims.

This guide explains what Zakat is, how it is calculated, its purposes, and frequently asked questions to help you fulfill your religious obligations with clarity and confidence.

What is Zakat?

Zakat, meaning "purification" and "growth," is a mandatory act of almsgiving for Muslims whose wealth exceeds a minimum threshold (Nisab). It is calculated as 2.5% of eligible wealth annually and distributed to specific categories of recipients outlined in Islamic teachings.

Key Points about Zakat

  • Obligation: Required for adult Muslims meeting the Nisab criteria.
  • Nisab: Minimum wealth threshold to pay Zakat.
  • Rate: 2.5% of eligible wealth annually.
  • Recipients: The poor, orphans, debtors, travelers, and others in need.
  • Timing: Often paid annually, especially during Ramadan.

How to Calculate Zakat

Add all eligible wealth, subtract debts, and multiply the result by 2.5%:

Zakat = (Eligible Wealth - Debts) × 0.025

Example Calculation

Example:

  • Cash: $5,000
  • Gold: $3,000
  • Stocks: $2,000
  • Total Wealth = $10,000
  • Zakat = $10,000 × 0.025 = $250

Purpose of Zakat

Zakat aims to help those in need, promote equality, purify wealth, and strengthen the bonds of community and compassion among Muslims.

Conclusion

Understanding and calculating Zakat correctly is a vital part of fulfilling this important pillar of Islam. By giving with sincerity, you purify your wealth and contribute to the welfare of the community.

Frequently Asked Questions

How do we calculate Zakat?

Add all eligible wealth, subtract debts, and multiply by 2.5% (0.025).

When should Zakat be paid?

Zakat is typically calculated and paid annually, often during Ramadan, but can be given anytime once Nisab is met.

Can Zakat be given to non-Muslims?

Zakat is generally intended for eligible Muslim recipients, though some scholars allow limited distribution to non-Muslims in specific cases.

What is Nisab?

Nisab is the minimum amount of wealth a Muslim must possess before being obligated to pay Zakat. It is calculated based on the value of gold or silver.