Zakat Calculator on Seed Out
Zakat is a compulsory act of worship in Islam. It is the third pillar of Islam. One should pay Zakat after the completion of one lunar year. Zakat can be paid any time of the year; however, most people calculate and pay their Zakat at the start of Ramadan.
Eligibility for Zakat
In order to know that you are eligible for Zakat, you need to determine if you are Sahib e Nisaab or not. Nisaab is a minimum threshold that makes a Muslim eligible to pay Zakat. If your assets and savings are above Nisaab, you should calculate your Zakat and pay accordingly.
Are you eligible to pay Zakat?
To determine the value of Nisaab, you need to know the value of gold and silver per tola or per gram. For instance, the amount of gold you possess is more than 7.5 tola/87.48 grams or the value of silver you own is more than 52.5 tola/612.36 grams then you eligible to pay Zakat. However, since we use the monetary value in our day to day transactions, it is essential to convert these assets into their monetary values. It is convenient for you to convert them into your local currency.
Calculation of Nisaab
Suppose that the current monetary value of per tola gold is 50,000, here’s how you can calculate Nisaab:
Rs. 50,000 x 7.5tola = Rs. 375,000
And similarly, if you have silver, then you calculate the Nisaab by:
Rs. 500 x 52.5 = Rs.26,250.
If your wealth is above the calculated value, then you should pay your Zakat after the completion of the first lunar year. However, if your wealth keeps fluctuating, then you start again when you are above Nisaab.
Now that you are eligible to pay such that your asset value is above Nisaab, you should know how Zakat is calculated. Our simple Zakat Calculator will allow you to calculate your annual Zakat payment in the easiest of ways.
In order to calculate your Zakat, you need to know the asset value of all the assets mentioned below:
- The value of gold and silver items owned
- The net value of Precious stones like Diamonds, Rubies, Etc.
- Money in your bank accounts (savings, current, fixed deposits)
- Cash in hand
- Stocks, shares, investments, funds, loans
- Landed Property held as an Investment / Business (Estimate the current Market Value)
- Share in Partnership Firms
- Farm and agricultural produce
- General liabilities
After you know all these values, input them into the boxes, and your Zakat will be calculated separately for each asset. On the top right of the page, your total Zakat will be shown, which is the total amount you need to pay.
Seed Out and Zakat
Now that you know the amount that should be dedicated to Zakat; you can make your payment. You should ensure that your Zakat reaches the only Zakat-eligible people. Seed Out is a nonprofit organization with vast experience of providing financial assistance to some of the most marginalized and vulnerable people in Pakistan. Seed Out’s donation appeals and campaigns are Zakat-eligible. Seed Out sets up small businesses for the underprivileged people by providing interest-free loans. This allows them to earn a sustainable income and lead a poverty-free life. At Seed Out, your donation has the power to make a difference.
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