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Zakat Calculation
includes 3% processing fee
We add 3% to the total Zakat owed to cover the Credit Card/PayPal processing fees. This ensures that the recipients receive your Zakat amount in full. SeekersHub does not take any money for distributing Zakat.

Total Assets:

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Total Liabilities:

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Assets
Zakat is due on all cash, whether held in hand, in a bank, in another currency or with another person. Enter the value of your cash:
Zakat is due on all forms of gold according to weight value. A jeweler can tell you the weight of your gold, or you can weigh it yourself if you have a jeweler's scale. Enter the weight of your gold:
Zakat is due on all forms of silver according to weight value. A jeweler can tell you the weight of your silver, or you can weigh it yourself if you have a jeweler's scale Enter the weight of your silver:
Zakat is not due on personal property or fixed assets, unless they are purchased for resale. Zakat is due on the income from a rental property and not on its market value. Enter the value of your property and fixed assets:
Zakat is due on debts you are sure will be repaid to you, such as loans to friends and family. Zakat on debts can be deferred till repayment, for all years they were owed, or paid annually. Outstanding wages, unpaid dowry, inheritance, and trusts (other than bare trusts) are exempt from zakat. Enter the value of the debts owed to you:
Liabilities
For long-term debts (due after more than a year, such as mortgages, student loans, etc), it is best for only the next payment to be deducted from zakat payments.
Enter the value of your next debt payments:

0
Zakat Calculation
includes 3% processing fee
We add 3% to the total Zakat owed to cover the Credit Card/PayPal processing fees. This ensures that the recipients receive your Zakat amount in full. SeekersHub does not take any money for distributing Zakat.

Total Assets:

0

Total Liabilities:

0

Zakatable Wealth:

0

Zakat Owed:

0

Zakat is not obligatory if your net zakatable assets are below the zakatable minimum (nisab) of:
Zakat is not applicable

Zakatable Wealth:

$0

Zakat Owed:

$0

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FREQUENTLY ASKED QUESTIONS

If you have a question not covered here, or need help calculating your Zakat

Please email us at: zakatcalculation@seekershub.org.

Who has to pay Zakat?

For anyone who possesses a zakatable-minimum (nisab) the obligation to pay Zakat will commence. As soon as one possesses this amount, one’s Zakat year will start, and one i be obligated to actually pay Zakat once a whole year has passed if one still possesses an amount equal to or greater than the zakatable-minimum.

What is the Zakatable Minimum (Nisab)? How is it calculated?

The value of nisab is the measure by which one decides if one pays zakat or not. This is equivalent to the monetary value of 87.48 grams (6.61 ounces) of gold. If one posses this amount of zakatable wealth, above and beyond one’s upcoming debts and immediate expenses, then zakat is due.

How do I calculate my Zakat?

The basic understanding is the a person adds all assets together (cash, gold, silver, etc.) and then deducts all liabilities (immediately payable debts, living costs/expenses etc.) from this amount. If the final figure is equal to or greater than the nisab, then 2.5% of it is due in zakat.

It is, of course, permitted (and praiseworthy) not to deduct all liabilities, as it maximizes one’s zakat – and results in greater benefit to the poor and greater reward for the giver.

How much is Zakat?

The zakatable amount is counted from zakatable wealth and trade goods while excluding personal possessions (house, furniture, clothing, vehicles, etc.), upcoming debts, and immediate expenses.

So if one, for instance, has $1000 more than the nisab but is in debt for $1500, one does not have to pay zakat.

A Full Illustration

The following is an example, and assumes a person has all types of assets. Someone who doesn’t have one category of assets, simply leaves it out when filling the form.

When calculating zakat one first takes the value of the gold one possesses. Then one adds the value of silver, and all the cash.

If one has shares purchased for resale, one adds their (sales) value, too. If one bought them without the intention of selling them on, but to benefit from their dividends, one adds the value of the dividends at that moment.

Then one adds the value of any rent from rental properties. Then one adds the value of any money lent to other people.

If one has a pension scheme one adds the value of the pension. (This is like a saving, and technically the zakat has to be paid when one collects the money, but to avoid confusion and complications it is advisable to pay it every year one is over the nisab).

From this total figure, one subtracts one’s upcoming month’s expenses (rent, fuel, food, etc). One also subtracts the value of any immediate debts owed to others. (This is a debt which one needs to repay pay within a year.) It is, of course, permitted (and praiseworthy) not to deduct this, as it maximizes one’s zakat – and results in greater benefit to the poor and greater reward for the giver.

If one has a long term debt like a mortgage, one can subtract the amount of the upcoming installment – but not any interest owed.

After all this, if the figure one is left with is equal to or greater than the current market value of 87.48 grams (6.61 ounces) of gold, one then pays 2.5% as zakat.

A Few Examples

Example 1: The zakatable-minimum is $2000. One possess $1000 of cash, $1500 of gold and silver, and $2500 in trade goods then one’s total zakatable assets amount to $5000 (supposing one has no money lent out, stocks, or agricultural produce). However, one also has a debt of $500 and immediate monthly expense amounts to $500 also, which will be subtracted. Thus, the total zakatable wealth is $4000. This is above the zakatable-minimum, so the obligation to pay Zakat will commence.

If one possessed this amount on the 1st of Rabi‘ al-Awwal then this is when the Zakat year starts. If then, for example, one possesses $2500 on the 2nd of Rabi‘ al-Awwal of the next year, one will have to pay 2.5% of $2500. Thus, what is taken into consideration is the amount one possesses above the zakatable-minimum at the end of one’s Zakat year. This is the amount Zakat is due upon.

Fluctuations during the middle of the year are of no consequence, unless one’s zakatable amount reaches zero. Only the beginning and end of the year are taken into account. One therefore has to possess a zakatable-minimal both at the beginning and at the end of one’s Zakat year.

Example 2: The zakatable-minimum is $2000. One’s zakatable assets amount to $3000. However, one also has $500 of immediate expenses and a debt amounting to $2000. Thus, the total zakatable wealth is $500. This does not reach the zakatable-minimum and so no Zakat is due upon one. In such a case, one’s zakat year does not even commence because one never possessed a zakatable-minimum to begin with.

Example 3: The zakatable-minimum is $2000. One’s zakatable assets amount to $4000. One has immediate expenses of $500 and a debt amounting to $1000. Thus, one subtracts this, and is left with a total zakatable wealth of $2500. One possesses this amount on the 1st of Muharram. Since it is over the zakatable-minimum, the Zakat year starts on this date. On the 2nd of Muharram the following year the total zakatable wealth, having decreased, amounts to $1500. Since this is not equal to or more than the zakatable-minimum no Zakat will be due.

What if my jewellery is made up of different materials (other than gold and silver)?

Zakat is not required on jewelry that is intended as jewelry (i.e. as opposed to jewelry intended as trade goods) that is made of materials other than gold and silver.

What is the technical definition of Zakat?

“Transferring ownership of an amount of material wealth specified by the Lawgiver to a poor Muslim who is not Hashimi nor their client, without material benefit returning to the giver in any way, for the sake of Allah Most High.” [Tumurtashi, Tanwir al-Absar]

There are many important points understood in this definition:

1. It is a condition that there be a transferring of ownership. (Simply put: your zakat has to be given). As such, it is not valid to forgive a debt someone owes you as zakat.

2. Zakat has to be given to the poor and needy. It is not valid to give zakat for projects, mosques, and virtuous activity, unless the zakat itself will be given to the poor and needy.

3. Zakat must be given to a Muslim. Unlike charity, it is not valid to give zakat to a non-Muslim.

4. Zakat cannot normally be given to Hashimis (those from the family of the Prophet, Allah bless him and give him peace).

5. The giver cannot materially benefit from giving zakat. As such, one cannot give zakat to one’s parents, children, or spouse, because benefits between these people are shared.

What is the difference between Zakat and Sadaqa?

Zakat is obligatory on anyone who meets the conditions and is payable once a year. Sadaqa is optional and can be paid at anytime.

Zakat is valued at 2.5% of your savings over a year, and must be paid to specific categories of individuals. Sadaqa can consist of any amount and can be given to organizations or mosques.

Who receives Zakat?

Eligible recipients include: the poor, the indigent (who possess less than the nisab), those with overwhelming debt, and travelers cut off from their wealth at home.

It cannot be given to non-Muslims, the wealthy, Hashimis (see definition above), and certain relatives (parents, grandparents, children, grandchildren, and spouses). It also cannot be used to pay off the debt of the deceased. [Shurunbulali, Ascent to Felicity]

One of the conditions of zakat is that it entails a transfer of ownership to an individual; as such, we cannot use our zakat to pay for the construction or support of Islamic institutions. Rather, this money goes specifically to the individuals listed above.

How do I determine my Zakat anniversary?

Your Zakat anniversary is tied to a person’s owning the minimum balance (the nisab value). A person starts calculating the anniversary once they have gained this minimum balance, and must hold it for a year. If at any point they dip below this value, the calculation breaks, and restarts anew when they regain this minimum. Because of this, the zakat date can vary year to year.

Can I Pay Zakat in installments?

Yes, as long as:

1. There is no undue delay, which is defined as more than one year, in paying the complete amount one owes in Zakat after it becomes obligatory, and

2. One intends, whether actually or effectively, paying Zakat upon disbursing each installment. [Ibn `Abidin, Radd al-Muhtar]

What do I do if I haven’t paid Zakat for previous years?

Based on the above definition, you first owed zakat one year after you first came into possession of more than the nisab amount (around $4925 as of April 2012). Since you do not know for sure when this happened, you should try to establish this date based on your best estimation. Perhaps looking into your bank records will help.

If you accumulated your nisab after you started working, then think about how much you made per paycheck, and how much of that you normally spent versus how much you kept, and then calculate from that when you surpassed the nisab. Your first due-date for zakat, then, would be one lunar year from that date.

Do I I need to pay zakah on gold and silver jewelry that I use?

In the Hanafi school, Zakat is due on all gold and silver. In the Shafii school, one can deduct jewelry that is worn from one's Zakat calculations.

Do I need to pay Zakat on Retirement Funds (Superfunds/401k/etc…)?

Because retirement plans are assets/money owned, they are zakatable. However, zakat will not be due until one has full access to the money, at which point zakat is owed for all the past years (i.e., for each year one owned nisab or more).

It is advisable to go ahead and pay zakat on the plan each year, based on its total value that year, since otherwise it would take much effort to keep track of the yearly amount in retrospect when one finally has access to the money.

Lastly, one must pay zakat on the total amount in the fund, unless one makes a premature withdrawal or cancels the plan, as that would result in penalties or taxes. In that case, those penalties or taxes may be deducted.

Upcoming Expenses

You may deduct your expenses for the upcoming month such as rent, fuel, bills, food, etc... One is not, of course, obligated to deduct upcoming expenses -- as not doing so is more beneficial to the poor and facilitates greater giving.