How do i calculate zakat al maal ?

Published by WellSolidarity
1 October 2024

Open your heart

And help those in need

What is Zakat ?

Zakat, the third pillar of Islam, linguistically means “to purify.” The Qur’an contains more than 80 verses referring to Zakat and the obligation to pay it. It is a form of charity considered the right of the poor, taken from the surplus of the wealthier.

“…and in their wealth there was a rightful share for the beggar and the deprived.” (Qur’an 51:19)
“Take from their wealth a charity by which you purify them and bless them.” (Qur’an 9:103)

Thus, by paying Zakat, we purify our wealth by sharing it with those in need. Zakat also helps purify the human soul by distancing it as much as possible from miserliness and greed. This obligatory charity aims to support the poor and the needy in the hardships they face.

Zakat al-Mal is due from every Muslim who has reached puberty and is of sound mind.

“Who is it that will lend Allah a goodly loan, so He may multiply it for him many times over? And Allah withholds and grants abundance. And to Him you will be returned.”
Surah Al-Baqarah (2:245)

Who are the beneficiaries?

“Charities (zakat) are only for the poor, the needy, those employed to collect it, those whose hearts are to be reconciled, for freeing captives, for those in debt, in the cause of Allah, and for the stranded traveler.” (Coran, S.9 V.60)

The poor

Those in need

Relieve those burdened by debt.

Zakat administrators (those appointed to collect and distribute it).

*Non-exhaustive list.

How to calculate it

Once the Nisab has been determined, the next step is to know whether Zakat is due or not. If the total savings accumulated over one lunar year (or solar year) is greater than or equal to the Nisab, then Zakat must be paid. If this amount is below the Nisab, then no Zakat is due.

To pay Zakat, simply multiply the amount of savings by 0.025, i.e., 2.5% of the total.

Example: For €3,000 in savings, the calculation is:
(3000 × 2.5 ÷ 100 = €75)

*Nisab: the minimum threshold of wealth from which Zakat al-Mal becomes obligatory. If the value of the assets in your possession for one year exceeds the Nisab, then you must pay 2.5% of that amount. The Nisab is indexed to the market value of gold or silver. While the majority of schools use the value of gold to determine the Nisab—equivalent to 85 grams of gold—others refer to the value of silver, equivalent to 595 grams of silver.

Which types of wealth are included when calculating Zakat?

Cash kept at home or in bank accounts.

Gold and silver, including ornaments and jewelry containing gold and/or silver.

Shares and equity holdings, acquired directly or through investment funds.

Money lent to others, if the lender expects to recover it within the same year.

Calculate your zakat

Calculate my zakat

Bank savings (use the lowest balance held over the year).

+ Gold, silver (market value).

+ Money owed to you (deposits, loans you have made).

+ Resale value of shares, stocks, bonds, etc.

TOTAL

Here is the amount of your zakat :

2.5% (Lunar year)

2.575% (Solar year)

Open Your Heart

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