Zakat Calculator

What is Zakat?

Zakat is a mandatory process for Muslims and considered a form of worship. In Islam, Zakat is one of the five pillars. Through Zakat, people who lack basic necessities are protected from states of impoverishment such as hunger. By paying Zakat, we are reinforcing the fact that the wealth we are blessed with does not belong to us exclusively; it is a blessing from Allah SWT that we must share. As Muslims, this act of worship is an important obligation.

What is Nisab?

In Arabic, Nisab refers to the minimum amount which the Prophet, may peace be upon him, set as a fixed threshold at which a Muslim must pay Zakat from eligible wealth. Each asset type has a different threshold. Nisab literally means "origin," since Zakat-worthiness on a person's wealth begins at this limit of accumulation. This portion of wealth is considered the right of the poor.

When is zakat due?

The Zakat year should begin when your wealth equals or exceeds the Nisab. Upon reaching Nisab (also called Hawl) after one lunar year, Zakat becomes due. In this case, the following year's date will be the same.

Zakat will not be due if your wealth does not equal Nisab after one year. Additionally, you will wait to see when your wealth equals or surpasses Nisab.

Paying Zakat in Ramadan is not necessary, although giving charity in this month guarantees greater rewards.

How is zakat calculated?

The Prophet, may peace be upon him, set the following guidelines: The agricultural produce nisab was set at 1,439 lb. (653 kg). For ovine (sheep/goats) he set it at 40 head. Bovines (cattle, buffalo, bison, antelope, yaks, etc.) are at 30. For camels, he set it to 5. Zakat rates for personal wealth and business wealth were fixed at 2.5 percent. Trade goods (wares that change hands) are valued at the current wholesale price. One assesses one's exploited business assets (assets that remain as capital - not zakatable - think of rental properties and machines) but generate wealth (zakatable), net income.

Upon harvest, he fixed the Zakat rate for irrigated crops at 5 percent, and for non-irrigated crops at 10 percent. He fixed the Zakat rate on all types of treasure troves at 20 percent, due on extraction. For livestock, he fixed the Nisab thresholds and Zakat rates for each kind according to headcount.

Note: Women's jewelry is not subject to Zakat unless its amount is excessive or the jewelry is not being worn.

1. Cash in bank accounts (savings, checking) and in hand
2. Refundable deposits (for instance, on rented apartments)
3. Non-delinquent loans (money you have loaned out to others)
4. Expected tax refund
5. Gold and its certificate
6. Shares, stocks, bonds, IRA, pension plans, options, etc
7. Business cash on hand and in banks plus invoices due.
8. Business inventory Enter $0 if less than Nisab.
9. Net income you are entitled to as of Zakat due date.
10. Your liabilities

MWL’s dedication to distributing Zakat:

Mercy Without Limits provides Zakat donations to those who face difficult obstacles and are unable to adequately support themselves. Donate your Zakat now to alleviate the suffering of thousands of people all over the world.

Indeed, [prescribed] charitable offerings are only [to be given] to the poor and the indigent, and to those who work on [administering] it, and to those whose hearts are to be reconciled, and to [free] those in bondage, and to the debt-ridden, and for the cause of God, and to the wayfarer. [This is] an obligation from God. And God is all-knowing, all-wise. - Al-Tawbah, 9:60

So, where can your zakat go?

1. The poor (al-fuqarâ’), meaning low-income or indigent.
2. The needy (al-masâkîn), meaning someone who is in difficulty.
3. Zakat administrators. No more than 1/8
4. Those whose hearts are to be reconciled, meaning new Muslims and friends of the Muslim community.
5. Those in bondage (slaves and captives).
6. The debt-ridden.
7. In the cause of God.
8. The wayfarer, meaning those who are stranded or traveling with few resources.

For a more comprehensive overview, don't hesitate to contact us.