1. What is Zakat?

Zakat is one of the five pillars of Islam, an obligatory charity for Muslims who meet the necessary criteria of wealth. It's a fixed percentage (2.5%) of your savings and financial assets that are not used for debts or living expenses.

2. How is Zakat Calculated?

The calculator uses the standard Zakat formula:

Where:

• Wealth — Your total savings and assets in PKR
• Nisab — The minimum threshold for Zakat eligibility (current value: 88,000 PKR)
• 2.5% — Fixed Zakat rate on wealth above Nisab

Explanation: Zakat is only payable if your wealth exceeds the Nisab threshold after deducting your immediate living expenses and debts.

3. Current Nisab Value

Details: The Nisab value is based on the value of 612.36 grams of silver (approximately 88,000 PKR as of 2023). This value changes with silver prices and should be verified annually.

4. Using the Calculator

Tips: Enter your total wealth in PKR (cash, savings, investments, gold/silver not for personal use). The calculator automatically uses the current Nisab value but you can adjust it if needed.

5. Frequently Asked Questions (FAQ)

Q1: What assets are included in Zakat calculation?
A: Cash, savings, investments, business inventory, gold/silver not for personal use, and receivables.

Q2: What assets are exempt from Zakat?
A: Primary residence, personal vehicles, clothing, and items for personal/family use.

Q3: When is Zakat due?
A: After one lunar year (Hawl) of owning wealth above Nisab, unless it's your first time becoming Sahib-e-Nisab.

Q4: Can I pay Zakat in installments?
A: Yes, you can pay the calculated amount throughout the year if needed.

Q5: Where should Zakat be given?
A: To eligible recipients as defined in the Quran (Surah At-Tawbah 9:60) - the poor, needy, etc.