1. What is Zakat on Money?

Zakat on money is an obligatory charity in Islam paid annually on wealth that meets or exceeds the Nisab threshold. It's calculated as 2.5% of eligible assets held for one lunar year.

2. How Does the Calculator Work?

The calculator uses the Zakat formula:

Where:

• \( Assets \) — Total monetary wealth (cash, savings, investments)
• \( Nisab \) — Minimum threshold (equivalent to 87.48g gold or 612.36g silver)
• \( 0.025 \) — 2.5% Zakat rate

Explanation: Zakat is only payable if your total assets meet or exceed the Nisab threshold for one lunar year.

3. Importance of Zakat Calculation

Details: Accurate Zakat calculation ensures fulfillment of this Islamic pillar, purifies wealth, and supports those in need according to Shariah guidelines.

4. Using the Calculator

Tips: Enter your total assets in your local currency and indicate whether they meet the Nisab threshold. The calculator will compute your Zakat obligation.

5. Frequently Asked Questions (FAQ)

Q1: What counts as assets for Zakat?
A: Cash, bank savings, investments, business inventory, and gold/silver are typically included. Personal items and primary residence are excluded.

Q2: How is Nisab determined?
A: Nisab is the value of either 87.48 grams of gold or 612.36 grams of silver (scholars differ on which standard to use).

Q3: When is Zakat due?
A: After one lunar year (Hawl) of owning wealth above Nisab. Many Muslims pay during Ramadan.

Q4: Are debts deducted from assets?
A: Yes, immediate debts are subtracted from total assets before Zakat calculation.

Q5: Can Zakat be paid in installments?
A: Yes, but the full amount should be calculated based on wealth at the due date.