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Zakat Formula:
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Zakat is one of the Five Pillars of Islam, requiring Muslims to donate a portion of their wealth to charity each year. It's calculated as 2.5% of wealth above the nisab threshold.
The zakat calculation formula is:
Where:
Note: Zakat is only payable if your total wealth exceeds the nisab threshold for a full lunar year.
Details: The nisab value fluctuates with gold prices. As of 2023, the commonly used nisab value in Australia is approximately AUD 496.50 (based on silver value) or AUD 3,500+ (based on gold value). Many scholars recommend using the silver standard as it makes zakat accessible to more people in need.
Instructions: Enter your total wealth in AUD and the nisab threshold (default is set to AUD 496.50 based on silver standard). The calculator will determine if zakat is payable and calculate the amount.
Q1: What wealth is included in zakat calculation?
A: Cash, savings, investments, gold, silver, business inventory, and assets held for trade. Personal items like home, car, and daily clothing are excluded.
Q2: How often should I pay zakat?
A: Zakat is paid once every lunar year (Hawl) when your wealth exceeds the nisab threshold for the entire year.
Q3: Can I pay zakat in installments?
A: Yes, you can pay the calculated amount in installments throughout the year as long as the full amount is paid by your zakat due date.
Q4: Who is eligible to receive zakat?
A: The Quran specifies eight categories including the poor, needy, those in debt, travelers, and those working to distribute zakat.
Q5: Should I use gold or silver nisab value?
A: There's scholarly difference. Using silver nisab makes zakat obligatory on more people, thus benefiting more recipients. Consult your local scholar for guidance.