Home Zakat Information 14.0 How should I Calculate Zakat
Zakat Information
14.0. How should I Calculate Zakat?
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How should I Calculate Zakat?

The amount of wealth which makes one liable for Zakat is called Nisab. The payment of Zakat is compulsory on the excess wealth which is equal to or exceeds the value of Nisab, and which is possessed for a full Islamic year. If such wealth decreases during the course of the year, and it increases again to the value of Nisab before the end of the year, the Zakat then must be calculated on the full amount that is possessed at the end of the year.

Simple Zakat Calculator Table

Following is a simple table which may help in calculating Zakat:

Assets Total ($) Assets subject to Zakat ($) Assets exempt from Zakat ($)
Gold and silver (metal)
x
Cash on hand and at bank
x
Stocks and Mutual Funds (at market value)
x
Stock Options
x
Business Merchandise Inventory
x
Private Companies, Corporations and Partnerships
x
Retirement plans (yearly amount)
x
Real Estate Investment (as business merchandise inventory, e.g. 2 houses)
x
Immovable property acquired for investment (and not to resell), whether company owned or privately owned

x
Accounts Receivable
x
Profits from Investment
x
Trusts (yearly amount)
x
Life Insurance
N/A N/A
Lump Sum Payments (Compulsory Pension, etc.)
N/A N/A
Severance Package
x
Loan account in companies - amount of income credited to loan account (excluding capital introduced)
x
House

x
Furniture and household effects

x
Motor vehicles

x
Gold coins
x
Diamonds and precious stones (not for business)

x
Plant, machinery and fixtures and fittings

x
Trade debtors
x
Stamp collection

x
Paintings

x
Loan debtors
x
Deposits and pledges

x
TOTAL ASSETS


Table A: Asset calculation for Zakat


Liabilities  
Total($)
Deductible       ($)        
Non-Deductible ($)
Mortgage on house yearly

x
Bank overdraft (to fund stocks and trade debtors only)
x
Trade creditors
x
Installment sale and lease creditors to fund motor vehicles/plant and equipment

x
Any other liabilities incurred in respect of an asset on which Zakat is not payable

x
Shipping loans to finance business merchandise and/or trade debtors
x
TOTAL LIABILITIES


Table B: Liabilities calculation for Zakat


Summary USD ($)
Total value of assets subject to Zakat
Deduct liabilities relating only to assets subject to Zakat
NET AMOUNT subject to Zakat
Zakat = 2.5% x $ NET AMOUNT

Table C: Final Computation Table calculation for Zakat

Alternate Summarized Zakat Calculator Table

 

For a simpler calculation, kindly use this table. All these assets are Zakat-able, and the liabilities should include only those which are deductible (i.e. liabilities incurred due to assets that are Zakat-able, not on assets that are not Zakat-able). For example, the house you live in is non-Zakat-able so any mortgage payment on it is not deductible.

 

Item Value
Total Gold value without jewels $
Total Silver value without jewels $
Cash on hand $
Checking Account $
Saving Account $
Business Bank Account(s) $
Stocks & Mutual Funds $
Business Merchandise Inventory $
Retirement Plans (401K/IRA/etc.) $
Real Estate (excluding personal residence) $
Accounts Receivable $
Other funds (profits, trust accounts, partnerships, etc.) $
Sub Total $
Less deductible liabilities only $
TOTAL $
TOTAL x 0.025 (Zakat you have to pay) $

Table: Alternate Summarized Zakat Calculation Table

< 13.6 Other assets exempt
from Zakat
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15.0 What is the method
of giving Zakat?

 

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