1. What is Zakat?

Zakat is one of the Five Pillars of Islam, requiring Muslims to donate a portion of their wealth to those in need. It's calculated as 2.5% of wealth above the nisab threshold, which is the minimum amount of wealth one must have before being obligated to pay zakat.

2. How Does the Calculator Work?

The calculator uses the Zakat formula:

Where:

• Wealth — Your total zakatable assets (cash, gold, investments, etc.)
• Nisab — Minimum threshold (equivalent to 87.48 grams of gold or 612.35 grams of silver)
• 2.5% — Fixed zakat rate for wealth above nisab

Explanation: Only wealth above the nisab threshold is subject to zakat. If your total wealth is below nisab, no zakat is due.

3. Importance of Zakat Calculation

Details: Accurate zakat calculation ensures you fulfill your religious obligation correctly, neither underpaying nor overpaying. It helps purify your wealth and supports those in need.

4. Using the Calculator

Tips:

• Enter your total zakatable wealth in USD
• The nisab value is pre-filled with the current silver standard (612.35 USD)
• You may adjust the nisab value if using gold standard (typically higher)
• All values must be positive numbers

5. Frequently Asked Questions (FAQ)

Q1: What counts as zakatable wealth?
A: Cash, savings, investments, gold/silver, business inventory, and other liquid assets held for one lunar year.

Q2: Should I use gold or silver nisab?
A: Most scholars recommend using the silver standard (lower threshold) to be more charitable. Current silver nisab is approximately $612.35.

Q3: When is zakat due?
A: After one lunar year (354 days) of holding wealth above nisab. Many Muslims pay during Ramadan.

Q4: Are debts subtracted from wealth?
A: Yes, immediate debts can be subtracted from your total wealth before calculating zakat.

Q5: Who is eligible to receive zakat?
A: Eight categories mentioned in the Quran including the poor, needy, those in debt, and travelers in need.