Calculate Your Zakat

Any liquid wealth you possess, including cash bills, bank deposits, or cryptocurrency, is liable to Zakat. This applies regardless of whether the money is kept in your own accounts, held in a different currency, or stored with someone else. It is worth noting that any interest earned on this wealth should not be included in the Zakat calculation but can be given as Sadaqa or charity separately.

Enter the dollar value only.

Zakat is applicable on any gold you possess, irrespective of its form, based on its weight value. You can determine the value of your gold by weighing it and calculating its market value or by consulting a jeweler. This includes gold jewelry, coins, and other ornaments. Although there is a difference of opinion among scholars on whether Zakat should be paid on gold jewelry used for personal purposes, it is advisable to pay Zakat on all gold jewelry to be on the safer side.

If any personal use item is made of a mixture of metals, Zakat is only applicable if the gold in it accounts for 50% or more of the total weight, although some scholars consider the proportion of gold in any owned asset to be subject to Zakat.

Enter the dollar value only.

Silver that you own in any form is subject to Zakat according to its weight value. Silver can be valued by its weight and resale value by a jeweler or you can multiply the number of grams (of silver) that you own by the current market value.

This includes any jewelry, coins, ornaments, etc. made of silver. There is a difference of scholarly opinion regarding whether Zakat is due on jewelry kept for personal use vs. that which is kept as an investment or to sell, however it is safer to pay Zakat on all gold or silver jewelry.

For personal use items made from a mixture of metals, these are only subject to Zakat if 50% or more of the metal is silver, although some scholars hold that the proportion of silver in any owned asset is subject to Zakat.

Precious gems and other metals are not subject to Zakat.

Any other savings which are not included above that you wish to include

Since retirement plans and funds are owned assets or cash, they are subject to Zakat depending on the nature of the fund.

Accessible: If you have access to withdraw funds, then first calculate the total fund value minus the Penalties and Taxes you will pay for early withdrawal, then add this value to your Zakatable assets.

Long Term: If it is a long term fund and you do not have access or control to withdraw, then you may treat it as a passive investment and only pay Zakat upon maturity when you have access to your investment. Zakat will be payable on the entire value of the fund less any fees or taxes.

Zakat is payable on money owed to you that you are confident will be returned back to you, such as personal loans to friends and family. This does not include outstanding wages, unpaid dowry, inheritance that is not in your possession or assets held in trust.

Long Term: For halal-compliant shares that are purchased for long-term investment to generate dividends, without intention to resell, then only the dividend income is added to your Zakatable assets.

Short Term: If halal-compliant shares are purchased for capital appreciation with the intention to resell, in the case of day trading or short term trading, then the total of their market value is added to your Zakatable assets.

If you are cashing out halal-compliant shares, the amount remaining after taxes and fees, is added to your Zakatable assets.

You may deduct any short term debts that you owe and intend to pay immediately from your Zakatable assets.

For long-term debt that you are actively paying, such as mortgages or student loans, the preferred scholarly opinion is that you should only deduct the immediate month’s principal (non-interest) portion.*

Short term is considered anything less than one lunar year, and long term is considered more than one lunar year.

If payments are not being paid on the long-term debt, then it should not be deducted from your Zakatable assets.

* There is a difference of opinion that allows the non-interest or principal portion of the upcoming lunar year’s worth of payments to be deducted for Zakat calculation purposes. Please refer to your local scholars.

You may deduct your personal and living expenses for the upcoming month from your Zakatable assets, including outstanding or overdue living expenses, such as rent payments, utility bills, food, and other bills.

You may deduct business expenses from your Zakatable assets, including rent, bills, salaries, even if they are outstanding or overdue.

You may also deduct the amount of outstanding short term commercial loans that are due in less than 1 lunar year and you actively intend to pay back. For long term business debt, deduct only the immediate month’s principal (non-interest) portion.

For goods purchased on credit, deduct the total value of the goods.

Any other outgoing dues that you wish to include