Zakat Made Simple Calculator

Zakat is due to be paid once every lunar year.

Did you pay your Zakat last year?

If one lunar year has not passed since your net assets exceeded the Nisab, then Zakat is not due upon you until the year has passed. If you wish to pay in advance, then that is permissible. However, when your actual Zakat due date sets in you will need to recheck your financial condition to confirm that you have not underpaid for that Zakat year.

Zakat is an obligatory act of worship and its omission is a grave sin in Islam. Omitting the payment of Zakat is not only disobedience to Allah but also a denial of the rights of the poor and needy. If you have omitted Zakat payments for previous years then you must make your best effort to make up for these omissions as soon as possible.

It is important for you to have a fixed date in the Islamic calendar by which you pay your Zakat in order to avoid the possibility of late payment.

Have you set a fixed date in the Islamic calendar by which you pay your Zakat?

What date do you annually pay Zakat?

Do you intend to pay your Zakat in advance?

You should proceed with your calculation according to your best estimate but on your Zakat date, you should recalculate to check that you have not underpaid your Zakat.

Whatever date you make your payment will be treated as your Zakat day for future years.

Do you have any children below the age of puberty?

There is an accepted difference of opinion as to whether Zakat is due on the wealth of children. The National Zakat Foundation adopts the view that Zakat on wealth owned by children should be paid. The reason is that according to a narration of Abu Dawud, the Prophet Muhammad (peace be upon him) came across a lady whose daughter was wearing two gold bracelets and he asked her if Zakat had been paid upon them. When she replied in the negative he gave her a stern warning against her actions, at which point she donated both bracelets in charity. Therefore, as you go through the calculator, bear in mind any cash or jewellery (or any other asset) that is owned by your children. If your child is over the age of puberty, then he or she should be encouraged to take responsibility for calculating their Zakat payment, even though parental support is be advisable.

Please remind any children above the age of puberty that they are responsible for calculating and paying their own Zakat.

Have you already calculated your Zakat payment?

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Make your intention

There is a famous narration of the Prophet Muhammad (peace be upon him) in which he said, "Indeed actions are judged only by their intentions, and for every person is that which he (or she) intended".

Paying your Zakat is such a crucial act of worship, the most important obligation after the five daily prayers. Therefore refresh your intention that you are about to embark on an act of worship purely for the sake of Allah. Remind yourself that calculating and paying your Zakat is a means of purifying yourself, your wealth, fulfilling the rights of the poor needy and incurring the blessings and mercy of Allah.

Once all of this is firmly rooted in your mind and heart, begin!

Cash

At the time of the Prophet Muhammad (peace be upon him) the currency of the day was gold dinars or silver dirhams and Zakat was due on them. Since paper money has now become an accepted and commonly used means of transacting, Zakat is due on wealth held in this form even though it does not carry any intrinsic value.

In calculating all your cash holdings, don't forget to include all your bank accounts as well cash in your wallet or under your mattress!

If you hold cash in various currencies, convert the value to Australian dollars before adding them below.

Cash assets in AUD

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Gold

There is an accepted difference of opinion as to whether Zakat is payable on jewellery. The National Zakat Foundation adopts the view that Zakat should be paid on jewellery.

Note that for lower carat gold items (i.e. where there is a mixture of gold with other metals), Zakat is only due on the proportion that contains gold. Therefore, when entering weights, please only enter the best estimate of the weight of gold in your jewellery. The safest way to avoid underpayment of Zakat is to enter the total weight of gold jewellery.

Even though men are prohibited from wearing gold jewellery, if a man possesses a gold watch for example, then Zakat should still be paid on that watch.

Don't forget to enter the value of any gold items held in other forms, such as gold biscuits and coins.

Zakat is not due on jewellery made of platinum, pearls or any other precious metals.

Gold assets in grams

grams

Silver

There is an accepted difference of opinion as to whether Zakat is payable on jewellery. The National Zakat Foundation adopts the view that Zakat should be paid on jewellery.

Note that for silver alloy items (i.e. where there is a mixture of silver with other metals), Zakat is only due on the proportion that contains silver. Therefore, when entering weights, please only enter the best estimate of the weight of silver in your jewellery. The safest way to avoid underpayment of Zakat is to enter the total weight of silver jewellery.

Don't forget to enter the value of any silver items held in other forms, such as silver biscuits and coins.

Zakat is not due on jewellery made of platinum, pearls or any other precious metals.

Silver assets in grams

grams

Business

In relation to your business, you should include the following as Zakatable assets below where relevant.

  • Cash
  • Goods for sale (at current prices)
  • Inventory (at current prices)
  • Work in progress (at cost)
  • Raw materials (at cost)

If you have business liabilities to offset against these assets, then you will be able to enter these in the next section.

Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity.

Please only include business assets in line with your % ownership of the business.

Business assets in AUD

$

Shares

If you own shares for the purposes of long-term investment without intention to resell then Zakat is due on dividend income only.

If this is the case, and if dividend income has not been included within your cash section, then please include dividend income for this Zakat year in this section.

If you own shares with the prime motivation of capital appreciation and with the intention to resell, then please include their market value in your calculation.

Whether you have bought shares directly or whether you own them as part of a savings product, such as an ISA, their value should be included here.

Share assets in AUD

$

Superannuation

Superannuation is a relatively new asset class and scholars have emerged with differing opinions as to how they should be treated for the purposes of Zakat calculation.

The National Zakat Foundation adopts the view that Zakat is due on the value of voluntary super contributions in that Zakat year and only if it is the case that the owner of the superannuation has some ability to dictate how superannuation assets are invested.

For example, if Ahmad paid his Zakat on 20th of Ramadan last year, then this year he will only pay Zakat on the value of his voluntary contributions to his pension scheme between 21st of Ramadan last year and 20th Ramadan this year.

Superannuation statements will typically show this division between an individual's contributions and his or her employer's contribution. If it is a personal superannuation plan, then all the contributions from an individual in his or her Zakat year should be counted.

Superannuation assets in AUD

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Property

If you own property other than your home for the purposes of long-term investment without intention to resell then Zakat is due on rental income only.

If this is the case, and if rental income has not been included within your cash section, then please include this amount here.

If you own additional property with the prime motivation of capital appreciation and with the intention to resell in this Zakat year, then please include the value of the property here.

If you own additional property with no intention either to resell or to derive rental income, then no Zakat is due.

Please note that if you are a property developer and you have already mentioned this in the Business section, then please do not input this information twice.

Property assets in AUD

$

Cash investments

Cash investments such as bonds or savings products offered by your bank, which offer an interest-based return are prohibited in Islam. Although there is no Zakat due on forbidden wealth, Zakat is still due on the proportion of the investment that is halal.

For example, if Ali invested $10,000 in a savings product that has been yielding 7% return based on interest, then Zakat is due only on the original investment (or the principal value), subtracting any interest received.

If you own an interest-bearing asset, then you are advised to sell the asset, give away the interest money received in charity and use the remaining money in a halal manner.

Cash investment assets in AUD

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Debts owed to you

If there is a debt owed to you immediately or between now and your Zakat date, and you consider this to be a good debt that is likely to be repaid, then the value of the debt should be added here and you should pay Zakat on it.

If, however, you think there is a good chance that you will not receive the money that is owed to you on time, or you are not sure when you will receive it, then you do not need to pay Zakat on this amount until you actually receive repayment.

If you have lent someone money but it is not due for immediate repayment or within your current Zakat year, then this should not be added to your calculation.

For example, on 1 Ramadan 1432, Ahmad has lent $4,800 to Farooq, which is paid back in installments at $100 per month. The following year, on 1 Ramadan 1433, Farooq has managed to repay $1,200. Ahmad is calculating his Zakat that he pays on 10 Ramadan every year. The only amount of the debt that he includes in his Zakat payment is the $1,200 that he has received (which will be reflected in his cash figure) and any repayment that he expects before or on 10 Ramadan.

Debts owed to you in AUD

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Other assets

Please use this section to input the value of any other Zakatable assets that you feel may have been omitted. Should you need to ask a question please don't hesitate to get in touch with us.

Other Zakatable assets in AUD

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Personal liability

Please include the value of any of the following outstanding/unpaid liabilities that are either due for payment between now and your Zakat due date or overdue payments:

  • Rent or mortgage payment
  • Utility bills
  • Credit card bills
  • Other bills

Do not include any liabilities that are due to be paid beyond your Zakat date.

Personal liabilities in AUD

$

Business liability

Please include the value of any of the following outstanding/unpaid liabilities that are either due between now and your Zakat due date or overdue payments:

  • Commercial loans that have been used to finance Zakatable assets
  • Rent
  • Utility bills
  • Salary
  • Other bills

Do not include any liabilities that are due to be paid beyond your Zakat date.

Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity.

Please only include business liabilities in line with your % ownership of the business.

Business liabilities in AUD

$

The table below summarises the calculation of your Zakat.

If your Zakatable wealth has been above the Nisab value for a whole lunar year prior to your Zakat date then you will need to pay Zakat on your current Zakatable wealth.

Important: Please print this screen for future reference as we do not store your Zakat calculation details on the NZF website.