Zakat Calculator & Guide

The Importance of Zakat

Zakat is not just a tax; it is a spiritual investment.

Zakat is the third pillar of Islam, a mandatory act of worship for every qualified Muslim. The word "Zakat" literally means "to cleanse" or "to purify." By giving Zakat, a Muslim acknowledges that all wealth belongs to Allah (SWT) and that we are merely trustees. It purifies the remaining wealth and cleanses the soul from greed and selfishness.

"Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah 's blessings] upon them. Indeed, your invocations are reassurance for them."

Surah At-Tawbah [9:103]

Obligations of Zakat

Zakat becomes obligatory (Fard) upon a person who meets the following criteria:

Islam: Must be a Muslim.
Freedom: Must be free (not a slave).
Sanity & Maturity: Must be sane and an adult (according to majority scholars).
Nisab: Possession of wealth exceeding the threshold.
Hawl: The wealth must be held for one full lunar year.

The Nisab (Threshold)

Nisab is the minimum amount of wealth a Muslim must possess for a whole year to be liable to pay Zakat.

Gold Standard

87.48 grams (approx. 7.5 Tolas)

Silver Standard

612.36 grams (approx. 52.5 Tolas)

Note: It is generally preferred to use the Silver Nisab to determine eligibility as it benefits more of the poor.

The 8 Recipients of Zakat (Masarif)

The Holy Quran (Surah At-Tawbah, 9:60) specifies eight categories of people who are eligible to receive Zakat:

1. Al-Fuqara (The Poor)

Those who have no wealth or property.

2. Al-Masakin (The Needy)

Those whose income is insufficient for their basic needs.

3. Al-Amilun (Administrators)

Those appointed to collect and distribute Zakat.

4. Al-Mu'allafatu Qulubuhum

Those whose hearts are to be reconciled to Islam.

5. Fir-Riqab (Captives)

To free slaves or captives.

6. Al-Gharimun (Debtors)

Those burdened by debt and unable to pay it off.

7. Fi Sabilillah (In Allah's Cause)

Those striving in the path of Allah.

8. Ibnus-Sabil (The Wayfarer)

Travelers stranded without resources.

Rules According to Hanafi Fiqh

The Hanafi school of thought has specific rulings regarding Zakat calculation:

Jewelry

Zakat is due on gold and silver jewelry, regardless of whether it is worn daily or stored, provided the total value meets the Nisab.

Business Assets

Any goods purchased with the intention of resale are subject to Zakat at their current market value.

Debts

Debts owed to others can be deducted from total wealth. However, long-term debts (like mortgages) are often treated by deducting only the upcoming year's payments.

Minors

According to Imam Abu Hanifa, Zakat is not obligatory on the wealth of minors or the insane, as it is an act of worship requiring intention.

Frequently Asked Questions

You cannot give Zakat to your parents, grandparents, children, grandchildren, or spouse. However, you can give Zakat to siblings, cousins, aunts, uncles, and other relatives if they are eligible (poor/needy). In fact, giving to relatives is considered double reward: one for charity and one for upholding family ties.

According to the Hanafi school of thought, Zakat is due on gold and silver jewelry regardless of whether it is worn or stored, provided the total value meets the Nisab threshold. Other schools of thought may differ, so it is best to consult with a scholar if you follow a different Madhab.

Yes, you can pay Zakat in advance for future years or in monthly installments, provided you make the intention that these payments are for Zakat. At the end of your Zakat year, you should calculate your total liability and ensure you have paid enough. If you paid less, you must pay the difference.

Zakat is calculated on your total zakatable assets (savings, gold, silver, investments, business goods) held for a lunar year, not just your annual income. Expenses for immediate needs (food, housing, bills) are not subject to Zakat, but whatever remains as savings is zakatable if it meets the Nisab.