Zakaat Calculator

What is Nisab?

Nisab is a threshold that determines whether or not you owe Zakat. If the value of all your assets are less than the Nisab value when the date you usually pay your Zakat is due, you don't owe any Zakat. The Nisab threshold is calculated by either using the current value of 85g of Gold or 595g of Silver. We use live market prices for both Gold and Silver when we determine the current Nisab value.

Cash

At the time of the Prophet Muhammad (peace be upon him) the currency of the day was gold dinars or silver dirhams and Zakat was due on them. Since paper money has now become an accepted and commonly used means of transacting, Zakat is due on wealth held in this form even though it does not carry any intrinsic value. In calculating all your cash holdings, don't forget to include all your bank accounts as well cash in your wallet or under your mattress! If you hold cash in various currencies, convert the value to Australian dollars before adding them below.

Gold

There is an accepted difference of opinion as to whether Zakat is payable on jewellery. Brothers in Need adopts the view that Zakat should be paid on jewellery. Note that for lower carat gold items (i.e. where there is a mixture of gold with other metals), Zakat is only due on the proportion that contains gold. Therefore, when entering weights, please only enter the best estimate of the weight of gold in your jewellery. The safest way to avoid underpayment of Zakat is to enter the total weight of gold jewellery. Even though men are prohibited from wearing gold jewellery, if a man possesses a gold watch for example, then Zakat should still be paid on that watch. Don't forget to enter the value of any gold items held in other forms, such as gold biscuits and coins. Zakat is not due on jewellery made of platinum, pearls or any other precious metals.

Silver

There is an accepted difference of opinion as to whether Zakat is payable on jewellery. Brothers in Need adopts the view that Zakat should be paid on jewellery. Note that for silver alloy items (i.e. where there is a mixture of silver with other metals), Zakat is only due on the proportion that contains silver. Therefore, when entering weights, please only enter the best estimate of the weight of silver in your jewellery. The safest way to avoid underpayment of Zakat is to enter the total weight of silver jewellery. Don't forget to enter the value of any silver items held in other forms, such as silver biscuits and coins. Zakat is not due on jewellery made of platinum, pearls or any other precious metals.

Business

In relation to your business, you should include the following as Zakatable assets below where relevant.

• Cash
• Goods for sale (at current prices)
• Inventory (at current prices)
• Work in progress (at cost)
• Raw materials (at cost)

If you have business liabilities to offset against these assets, then you will be able to enter these in the next section. Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity. Please only include business assets in line with your % ownership of the business.

Shares

If you own shares for the purposes of long-term investment without intention to resell then Zakat is due on dividend income only. If this is the case, and if dividend income has not been included within your cash section, then please include dividend income for this Zakat year in this section. If you own shares with the prime motivation of capital appreciation and with the intention to resell, then please include their market value in your calculation. Whether you have bought shares directly or whether you own them as part of a savings product, such as an ISA, their value should be included here.

Superannuation

Superannuation is a relatively new asset class and scholars have emerged with differing opinions as to how they should be treated for the purposes of Zakat calculation. Brothers in Need adopts the view that Zakat is due on the value of voluntary super contributions in that Zakat year and only if it is the case that the owner of the superannuation has some ability to dictate how superannuation assets are invested. For example, if Ahmad paid his Zakat on 20th of Ramadan last year, then this year he will only pay Zakat on the value of his voluntary contributions to his pension scheme between 21st of Ramadan last year and 20th Ramadan this year. Superannuation statements will typically show this division between an individual's contributions and his or her employer's contribution. If it is a personal superannuation plan, then all the contributions from an individual in his or her Zakat year should be counted.

Property

If you own property other than your home for the purposes of long-term investment without intention to resell then Zakat is due on rental income only. If this is the case, and if rental income has not been included within your cash section, then please include this amount here. If you own additional property with the prime motivation of capital appreciation and with the intention to resell in this Zakat year, then please include the value of the property here. If you own additional property with no intention either to resell or to derive rental income, then no Zakat is due. Please note that if you are a property developer and you have already mentioned this in the Business section, then please do not input this information twice.

Cash Investments

Cash investments such as bonds or savings products offered by your bank, which offer an interest-based return are prohibited in Islam. Although there is no Zakat due on forbidden wealth, Zakat is still due on the proportion of the investment that is halal. For example, if Ali invested $10,000 in a savings product that has been yielding 7% return based on interest, then Zakat is due only on the original investment (or the principal value), subtracting any interest received. If you own an interest-bearing asset, then you are advised to sell the asset, give away the interest money received in charity and use the remaining money in a halal manner.

Personal Liability

Please include the value of any of the following outstanding/unpaid liabilities that are either due for payment between now and your Zakat due date or overdue payments:

• Rent or mortgage payment
• Utility bills
• Credit card bills
• Other bills

Do not include any liabilities that are due to be paid beyond your Zakat date.

Business Liability

Please include the value of any of the following outstanding/unpaid liabilities that are either due between now and your Zakat due date or overdue payments:

• Commercial loans that have been used to finance Zakatable assets
• Rent
• Utility bills
• Salary
• Other bills

Do not include any liabilities that are due to be paid beyond your Zakat date. Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity. Please only include business liabilities in line with your % ownership of the business.