It’s not as difficult as you might think to figure out your Zakat. We’ve found that breaking down your assets into different categories simplifies the Zakat calculation process.
We’ve broken down the calculation into Zakatable assets (gold, silver, cash, savings, business assets, and so on) and Deductible liabilities (money you owe, other outgoings due) so you can quickly figure out how much Zakat you owe.
Once you’ve calculated the value of your net assets, you’ll know how much Zakat you’ll have to pay. The next step is to determine whether your net assets meet or exceed the Nisab threshold.
Once a year, zakat is due. A Muslim, on the other hand, only pays Zakat after possessing the Nisab (minimum amount of wealth) for one lunar year. This means that each Muslim pays Zakat at different times throughout the year, depending on when they first met the Nisab and how long they have been a member.
Muslims use the lunar calendar to determine a full lunar year from the date they first meet or exceed the Nisab, which is based on the Islamic calendar (Hijri calendar).
You can then use this anniversary to determine when to pay your Zakat each year after that – it’s that simple!
If you owe debt or fall below the Nisab threshold during the year, you must first meet the Nisab and maintain it for a full year before becoming Zakat eligible again.