Fulfilling your obligation of Zakat made easy
At Al Mustafa Welfare Trust, we know that fulfilling your obligation of Zakat is very important. We are committed to helping you every step of the way; from calculating your Zakat, to choosing where to distribute your Zakat, and in actually ensuring your Zakat reaches the most needy communities around the world.
At Zakat is an obligation prescribed by Allah (swt), there are a series of rules to follow both in terms of calculating your Zakat, and in terms of distributing your Zakat. The main point of focus for you should be on understanding exactly how much Zakat you need to pay – 2.5% of your wealth – and making intention to pay this as Zakat. It is not possible to give general charity (sadaqah) and then later change your mind and insist that payment was for Zakat.
We have our very own Zakat calculator which makes it super easy and straightforward for you to calculate how much Zakat you need to pay. We also show you what fantastic things your Zakat can achieve, so you can rest assured your Zakat is being used in the best way possible. In this article, we break down how to use a Zakat calculator so you have one less thing to worry about.
How to use a Zakat calculator
Before you calculate how much Zakat you need to pay, you must establish whether you’re obligated to pay Zakat by looking at whether your wealth exceeds that of the Nisab. This is the minimum threshold of wealth that one must own before they are obligated to pay Zakat.
The value of the Nisab in prophetic tradition is 87.48 grams of pure gold or 612.36 grams of pure silver so the monetary value of the Nisab will vary according to current prices.
Due to the significant difference in the cost of gold and silver, the Nisab for silver is much lower than that of gold. Although either of the two values can be used, many scholars advise that we apply the Nisab of silver when calculating our Zakat, which means more people will be giving Zakat and more poor and needy people will be helped.
Once you have established that you own wealth exceeding the value of the nisab, it is now important to calculate exactly how much to pay. Zakat should be calculated and paid on any surplus wealth that you have owned for at least one lunar year.
You can use our Zakat calculator for gold, silver, cash and other assets to determine your overall wealth, and establish if your wealth exceeds that of the nisab value for 2021. Please note that any debts you currently have outstanding, including any form of a loan, are ineligible for Zakat so they must be deducted from the overall total.
This Includes:
- Gold, silver, precious metal, including ornaments/jewellery containing gold/silver
- Stocks and shares
- Money you have lent to others
- Cash in bank accounts, committees or at home
- Any business stock
- Pensions
- Property you own for investment purposes
With our Zakat calculator, you are able to input all these values onto the calculator itself. The calculator will then automatically work out exactly how much Zakat you must pay. You will be provided with an overall figure and be able to choose where to spend your Zakat, should you wish to do so.
Zakat Calculator UK
It is important to remember that the amount of Zakat you pay each year is likely to vary. Firstly, the monetary value of the Nisab varies year to year due to changes in the price of gold and silver, so it is important to ensure you are assessing the right figure. Secondly, it is likely that there will be changes in your income and expenditure each year, especially this year due to the ongoing Coronavirus pandemic. Salaries have been impacted by the closure of businesses and the furlough scheme, and the price of goods have increased, while families are spending less money on transport and recreational activities. Therefore, it is essential to ensure that your calculations are correct.
Our Zakat calculator makes it easy to avoid mistakes, as it relies on top-line information and takes away the heavy lifting of calculations and percentages!
Zakat calculator for gold
Our Zakat calculator also helps with understanding how much Zakat to pay on any gold you may have in your possession.
Zakat must be paid on 2.5% of the value of the gold that you own. A gram of gold costs £43.53, which equates to £1.09 Zakat per gram. Therefore, if you own 20 grams of gold jewellery, you would need to pay Zakat of £21.80 (20 grams x £1.09) on your gold.
100% Zakat Policy
Use our Zakat calculator today to maximise on the benefits of Ramadan and fulfilling this beautiful obligation. At Al Mustafa Welfare Trust, we have a 100% Zakat donation policy which means that every single penny of your donation reaches those most in need. Your Zakat is not used for overheads of unnecessary costs, but is spent directly on those who have a right over it.
