Zakat calculator a fundamental principle in Islam that involves giving a portion of one’s wealth to those in need. The word “Zakat” means purification and growth, as it purifies the wealth of the giver and helps it grow spiritually.
So we will discuss important information about zakat calculator, zakat al fitr, Why is zakat important, Gold zakat calculator and Who has to pay zakat? Keep reading.
What is zakat?
Firstly Zakat is a form of obligatory charity in Islam, It is the 3rd one of the Five Pillars of Islam and is considered a religious duty for all able-bodied Muslims who meet certain criteria regarding wealth and assets.
typically calculated as 2.5% of a person’s wealth and is meant to be distributed to those in need, such as the poor, needy, orphans, widows, and others who are eligible to receive it.
Zakat is seen as a way to purify one’s wealth and to help those less fortunate in society so there is a zakat calculator to help you to determine your zakat, especially zakat al fitr.
How much is zakat in islam?
In Islam, Zakat is typically calculated as 2.5% of a person’s wealth that meets the Nisab threshold or the Nisab value for one Islamic (lunar) year which is the minimum amount of wealth you must have to be obligated to pay Zakat.
The exact amount of Zakat owed can vary depending on the individual’s assets, including
- Savings
- Investments
- Gold
- Other forms of wealth.
It is recommended for Muslims to calculate their Zakat annually by Zakat calculator and distribute it to those in need.
Why is zakat important?
Zakat is an essential pillar of Islam and holds great significance for several reasons:
1. Purification of Wealth
Zakat serves as a means of purifying one’s wealth by removing a portion of it and giving it to those in need. By doing so, Muslims cleanse their wealth and purify their souls from greed and selfishness.
2. Social Justice
Zakat enhances equity in society and promotes social justice. It helps redistribute wealth from the affluent to the less fortunate, ensuring that everyone’s basic needs are met.
3. Solidarity and Compassion
Zakat fosters a sense of solidarity and compassion among Muslims by encouraging them to help those who are less fortunate. It strengthens the bonds of brotherhood and community within the Muslim Ummah.
4. Fulfilling a Religious Obligation
Zakat is a fundamental religious obligation for all financially capable Muslims. Fulfilling this duty is seen as a way to demonstrate obedience to Allah and earn His blessings.
5. Protection from Greed and Materialism
Paying Zakat helps protect individuals from the negative effects of greed, materialism, and attachment to wealth. It reminds Muslims that their wealth is a blessing from Allah and should be shared with others.
6. Barakah (Blessings)
It is believed that paying Zakat leads to an increase in blessings (barakah) in one’s wealth and overall well-being. By fulfilling this obligation, Muslims seek Allah’s mercy and blessings in their lives.
Overall, Zakat is important in Islam especially Zakat al fitr as it serves both spiritual and societal purposes, promoting generosity, compassion, and social welfare among believers.
Gold zakat calculator
To calculate Zakat based on the value of gold, you can follow these steps:
- Determine the current market value of gold per gram.
- Find out the Nisab threshold for gold which is equivalent to 87.48 grams of gold.
- There are 2 values from which the Nisab threshold is determined, which are Gold and silver.
Our prophet Muhammad (God’s blessing and peace be upon him) set The Nisab at a rate equivalent to:
- 87.48 grams of gold.
- 612.36 grams of silver.
4.Calculate the total value of your gold assets. Multiply the weight of your gold in grams by the current market value per gram.
- If the total value of your gold assets exceeds the Nisab threshold (87.48 grams), you are obligated to pay Zakat on that amount.
- The Zakat rate for gold is 2.5%. To calculate the Zakat amount, multiply the total value of your gold assets that exceed the Nisab threshold by 2.5%.
Here is a simple example to illustrate the calculation:
– Current market value of gold per gram: $50
– Total weight of gold owned: 100 grams
– Total value of gold assets: 100 grams x $50 = $5000
– Nisab threshold for gold: 87.48 grams
– Amount exceeding Nisab: 100 grams – 87.48 grams = 12.52 grams
– Zakat amount: 12.52 grams x $50 x 2.5% = $31.30
Please note that this is a simplified example, and actual calculations may vary based on the specific values and rates applicable in your region.
It is advisable to use a Zakat calculator or consult with a knowledgeable scholar or Islamic authority for precise Zakat calculations based on your individual circumstances.
Who has to pay zakat?
Zakat is obligatory on every financially capable adult Muslim who meets the Nisab (minimum threshold) and possesses a specific amount of wealth for a full lunar year.
however..The following conditions must be met for an individual to be obligated to pay Zakat:
1. Muslim
The individual must be a Muslim who has reached the age of puberty.
2. Financially Capable
The person must have wealth or assets that exceed the Nisab threshold.
3. Ownership of Wealth
The wealth must be owned by the individual, and it should be in excess of their basic needs and debts.
4. Passage of Time (Hawl)
The wealth must have been in the possession of the individual for a full lunar year.
5. Intention
The individual must have the intention to pay Zakat when giving out the required amount.
It is important for Muslims to use the Zakat calculator and pay their Zakat annually to fulfill this important religious obligation and contribute to the welfare of those in need in the community.
Who is eligible for zakat?
The holy Quran explains who is eligible for zakat and mentions the criteria which they should meet.
قال الله -عز وجل-: (إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِنَ اللَّهِ وَاللَّهُ عَلِيمٌ حَكِيمٌ).[١]
“As-Sadaqat (here it means Zakat) are only for the Fuqara’ (poor), and Al-Masakin (the poor) and those employed to collect (the funds); and for to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allah’s Cause (i.e. for Mujahidun – those fighting in the holy wars), and for the wayfarer (a traveller who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise.” – Chapter at-Tawbah Tevbe, 60
The following are the categories of people who are eligible to receive Zakat:
1. The Poor and Needy (Al-Fuqara’ wal-Masakin)
Those who do not have enough wealth to meet their basic needs.
2. The Destitute (Al-Mu’allafatu Qulubuhum)
Those who are new to Islam or whose hearts are to be reconciled.
3. Those in Debt (Al-Gharimin)
People who are in debt and have no money to repay it.
4. Those Fighting in the Cause of Allah (Fi Sabilillah)
Those engaged in Jihad or other forms of struggle for the sake of Allah.
5. Travelers in Need (Ibnus-Sabil)
Travelers who need assistance.
6. The Wayfarer (Al-Riqab)
Those enslaved and seeking freedom.
7. Those Working to Collect Zakat (Al-‘Amilina ‘Alayha)
Those appointed by the Islamic state to collect and distribute Zakat.
It is important to note that Zakat cannot be given to non-Muslims, except for those who may be inclined towards Islam or are in need of assistance.
Zakat al fitr 2024( eid fitrana)
Zakat al fitr is also known as Eid fitrana which is an obligatory charity that is due at the end of Ramadan, before the Eid prayer.
The purpose of Zakat al fitr is to ensure that the less fortunate members of the community have enough to eat and can also enjoy the celebration of Eid.
The amount of Zakat al fitr 2024 can vary depending on the region and the cost of living. It is typically calculated based on the price of staple food items such as
- Wheat
- Barley
- Dates
- Raisins
The recommended amount is usually equivalent to the cost of one meal for a person, which can be estimated based on the prevailing market prices.
As a general guideline, the commonly accepted amount for Zakat al-Fitr is approximately one Sa’ (a measurement equivalent to about 2.5 kg) of a staple food item per person in the household. The value of this amount can vary depending on the type of food chosen and its market price.
Muslims are encouraged to give generously and fulfill this obligation as a way of showing gratitude for the blessings of Ramadan and helping those less fortunate in the community.
How Much Zakat Do I Need to Pay
The Zakat that you should pay is calculated on:
- 2.5% of annual savings and personal wealth.
- 5% of a farmer’s assets where the farmer’s crops have been irrigated by the farmer.
- 10% of a farmer’s assets if the rain has irrigated the farmer’s crops.
- 20% of valuables and resources on your property, such as silver, oil, and gold
What Should I Include in my Zakat Calculation?
When calculating your Zakat, you should include all assets that are considered Zakatable according to Islamic guidelines.
Here are some key items to include in your Zakat calculation:
- Cash and Savings in bank accounts, and any other liquid assets that you own.
- Gold and Silver including jewelry, coins, or bars that you own.
- Investments including the value of any investment accounts, stocks, bonds, mutual funds, or other investment assets.
- Business Inventory
- Rental Income
- Loans Given
- Other Assets such as vehicles, equipment, or valuable items.
It is important to note that personal items such as your primary residence, personal clothing, and household furniture are generally not included in Zakat calculations.
However, if you own multiple properties or luxury items that exceed your basic needs, they may be considered Zakatable.
Summary
Consult with a knowledgeable person or an Islamic scholar if you have specific questions about Zakat calculations or use zakat calculator and know exactly the value of zakat al fitr. May Allah guide you in fulfilling your Zakat obligation with sincerity and generosity.