Zakat Calculation

Zakat Calculator 🧮

✅ 1. Cash-Based Investments

Includes:

📌 Zakat is due on the full amount, just like regular cash holdings.

💰 Zakat = 2.5% of the total amount

✅ 3. Real Estate Investments

For sale (investment): Zakat is due on the current market value.
For rent (not for sale): Zakat is not due on the property, but on rental income if saved.

✅ 4. Business Investments / Partnerships

If you invest in a business (as a silent partner or active investor):

Zakat is due on your share of the zakatable assets (cash, inventory, etc.) in the business.
Not on fixed assets (buildings, machines).

✅ 5. Retirement Funds (Pension, 401(k), Provident)

If accessible, pay Zakat on the Zakatable portion.
If not accessible (before retirement age or penalties apply), some scholars delay Zakat until it’s available.

🧾 1. Are You an Investor or a Trader?

✅ If You Are a Trader (Buy & Sell Frequently for Profit):

You treat stocks like inventory (trading goods), so Zakat is due on the market value of the stocks on your Zakat due date.

📌 Formula:
Zakat = 2.5% of the current market value of all stocks you own

✅ If You Are an Investor (Holding Long-Term for Dividends):

You pay Zakat only on the Zakatable assets of the company — not the full market value.

💡 But… that info is hard to get, so scholars allow two options:

Option 1: Pay on full market value (simplest)

Option 2: Pay on Zakatable assets only (more accurate)

You’ll need company financials: pay Zakat on cash, receivables, inventory (not fixed assets).
Usually this ranges between 25-40% of the stock’s value, so:

📌 Formula:
Zakat = 2.5% of tZakat = 2.5% of 25–40% of the stock’s market valuehe current market value of all stocks you own

💰 What About Dividends?

Dividends you receive are considered cash, so include them in your cash holdings and pay 2.5% Zakat if still in your possession at your Zakat date.

Land for personal use: No Zakat.
Land for investment or business: Zakat on the market value.
Land rented out: Zakat on rental income and possibly the market value.
Agricultural land: Zakat on crops produced.

Zakat is due on gold if:
- It reaches or exceeds the Nisab amount (the minimum threshold).
- It has been in your possession for one lunar year (Hijri year).
- It is not being used exclusively for personal necessity (depending on school of thought).