1. What is Zakat in Islam?

Zakat is one of the Five Pillars of Islam, an obligatory form of almsgiving for Muslims who meet the necessary criteria of wealth. It's a fixed percentage (2.5%) of a Muslim's total savings and wealth above a minimum amount known as Nisab.

2. How Does Zakat Calculation Work?

The calculator uses the Zakat formula:

Where:

• \( Wealth \) — Total savings, cash, gold, investments, etc.
• \( Debts \) — Immediate liabilities that must be paid
• \( Nisab \) — Minimum threshold (equivalent to 87.48g gold or 612.36g silver value)
• \( 0.025 \) — 2.5% Zakat rate

Explanation: Zakat is only payable when one's net wealth (after deducting debts) has been above the Nisab threshold for a full lunar year.

3. Importance of Zakat

Details: Zakat purifies wealth, supports the needy, and strengthens the Muslim community. It's a religious obligation for those who qualify.

4. Using the Calculator

Tips: Enter your total wealth, immediate debts, and current Nisab value in your local currency. The calculator will determine if Zakat is due and calculate the amount.

5. Frequently Asked Questions (FAQ)

Q1: What counts as wealth for Zakat?
A: Cash, savings, gold, silver, investments, business inventory, and other liquid assets. Personal items like home, car, and furniture are excluded.

Q2: How often should Zakat be paid?
A: Once every lunar year (Hawl) on wealth that has been above Nisab for the full year.

Q3: What is the current Nisab value?
A: Nisab is typically calculated based on gold (87.48g) or silver (612.36g) values. Check current rates as they fluctuate.

Q4: Can Zakat be paid in installments?
A: Yes, Zakat can be paid in installments throughout the year as long as the full amount is paid by the due date.

Q5: Who is eligible to receive Zakat?
A: The Quran specifies eight categories including the poor, needy, those in debt, and travelers in need.