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Zakat Formula:
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Zakat is one of the Five Pillars of Islam, an obligatory form of almsgiving for Muslims who meet the necessary criteria of wealth. It's a fixed percentage (2.5%) of a Muslim's total savings and wealth above the nisab threshold that is given to the poor and needy.
The calculator uses the standard Zakat formula:
Where:
Explanation: Zakat is only payable when your wealth exceeds the nisab threshold and has been in your possession for one lunar year (Hawl).
Details: Zakat purifies wealth, supports the less fortunate, and strengthens the Muslim community. It's a compulsory act of worship and a right that the poor have over the wealth of the rich.
Tips: Enter your total wealth and the current nisab value in your local currency. The calculator will determine if you owe Zakat and how much. Remember to consider all assets including savings, investments, gold, silver, and business merchandise.
Q1: What is the current nisab value?
A: The nisab value changes based on gold and silver prices. As of 2023, it's approximately $4,360 (based on gold) or $360 (based on silver). Most scholars recommend using the gold standard.
Q2: What assets are included in Zakat calculation?
A: Cash, savings, investments, gold, silver, business merchandise, and other valuables intended for trade. Personal items like your home, car, and furniture are exempt.
Q3: When is Zakat due?
A: After one lunar year (Hawl) of owning wealth above the nisab threshold. Many Muslims pay Zakat during Ramadan for greater blessings.
Q4: Can I pay Zakat in installments?
A: Yes, you can pay Zakat in installments throughout the year as long as the full amount is paid by the due date.
Q5: Who is eligible to receive Zakat?
A: The Quran specifies eight categories including the poor, needy, those in debt, travelers, and those working to collect and distribute Zakat.