ICO Islamic Calculator For Zakat
When calculating Zakat on cash, savings, bank balances, and liquid wealth, the rate is fixed at 2.5%. This applies to money that has been held for one full lunar year and is free from immediate debts. The simple formula is:
Zakat = Total wealth × 2.5%
Zakat Calculator
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How calculate Zakat as per Islamic Principles
Zakat is one of the five pillars of Islam and represents a mandatory form of charity that purifies a Muslim’s wealth. It is not just a donation but a spiritual duty aimed at supporting those in need, reducing poverty, and promoting economic balance in society.
If you want to understand your annual charitable obligations, learning how to zakat calculator can help you estimate the correct amount easily.
Every eligible Muslim must pay Zakat once a year if their wealth remains above the Nisab threshold for a full lunar year (Hawl). The Nisab today is commonly calculated based on either the value of 612.36 grams of silver or 87.48 grams of gold, depending on which standard one chooses.
However, it is important to understand that this calculator for Zakat is only for wealth such as cash, savings, and liquid assets. Islam has different Zakat rules for other types of assets. For example, business inventory, livestock, agricultural produce, gold and silver, rental properties, and long-term investments each have their own criteria, Nisab thresholds, and calculation methods.
Some items, such as agricultural crops, have Zakat rates that vary depending on whether irrigation costs were involved. Similarly, livestock has separate thresholds and percentages, while business merchandise is calculated based on its current market value.
Therefore, while a simple ICO calculator for Zakat can help determine how much to pay as Zakat on wealth, it does not determine Zakat for all asset types. Muslims are encouraged to learn the correct method for each category or consult knowledgeable scholars to ensure their Zakat is accurate and valid.
Bottom-line
The purpose of Zakat remains constant: to purify wealth, support the needy, and strengthen the community. There are five pillars, and one is Zakwat, which is 2.5% on money savings. In case of cattle like goats, one out of 40 is madatory to give in charity as Zakat.
وَأَقِيمُوا الصَّلَاةَ وَآتُوا الزَّكَاةَ وَأَطِيعُوا الرَّسُولَ لَعَلَّكُمْ تُرْحَمُونَ
“نماز قائم کرو، زکوٰة ادا کرو، اور رسول کی اطاعت کرو تاکہ تم پر رحم کیا جائے۔”