How zakat is calculated
- Add up zakatable wealth held for a full year: cash, saved gold and silver, shares held for trading, inventory and collectible receivables.
- Subtract debts that are due now.
- Compare the result with the nisab (the value of 85 g of gold). If it reaches the nisab, zakat is 2.5% of it.
Why 2.577% for a Gregorian year? The Gregorian year is about 11 days longer than the Hijri year, so the rate is adjusted to equal 2.5% per Hijri year.
FAQ
Is zakat due on gold jewelry that is worn?
Scholars differ: some require zakat on jewelry in regular use and some don't. Include its value if you follow the view that it's due.
How do I pay zakat on long-term shares?
If the company pays zakat on them, many scholars consider that sufficient. Otherwise, you pay on your share of the company's zakatable assets. Shares held for trading are zakatable at their full market value.
This is a calculation aid. For specific religious questions, please consult a scholar.