What is a Zakat calculator and How to calculate Zakat?
Zakat, also known as community wealth tax is a concept of obligatory charity in Islam. The word ‘Zakat’ is an Arabic word that means ‘to purify’. It is a way to purify your wealth by giving money from your wealth to those who are less fortunate and needy. Zakat is a right of the poor to the wealthy. In Islam, it is the responsibility of wealthy people to help their brothers who are in need. Anyone can do this by using the Zakat Calculator
Zakat in Holy Quran
The Holy Quran Says:
“Take from their wealth so that you might purify and sanctify them” (9:103).
Muslims consider their wealth as a gift from God and purify it from greed by distributing their wealth among the poor in society. Zakat cannot be given to everyone, eight categories have been defined in Quran to whom zakat can be given.
“The alms are only for the Fuqara’ (the poor), and Al-Masakin (the needy) and those employed to collect (the funds), and to attract the hearts of those who have been inclined (towards Islam), and to free the captives; and for those in debt; and for Allah’s Cause, and for the wayfarer (a traveler who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise.” [Al-Quran 9:60]”
Al-Fuqara (The poor); Zakat can be given to the poor who live below the poverty line and do not have enough money to meet their daily needs.
Al-Masakin (The needy); Zakat can be given to Masakin’s who do not have any source of income and possessions.
Freeing captives: Slavery is prohibited in today’s world but still, many people are living their lives as slaves. Zakat can be spent to exempt such slaves from their masters.
Debtors: Zakat can be given to people who are in debt to someone and unable to pay it back. So, the money from Zakat can be used to pay off their debts.
Zakat collectors: Some many authorized organizations and NGOs collect zakat from others and distribute it among the needy and poor.
Who converted to Islam: Zakat can be given to people who are newly converted to Islam and do not have enough to meet their daily expenses.
In the path of Allah: Zakat can be given to the people who are fighting in the name of Islam and staying away from their homes.
Wayfarer (Travelers): Zakat can be given to refugees who leave their countries in search of a safe place, and Zakat can also be given to travelers who are traveling alone in some other country and need money to meet their expenses.
In Islam, there is a proper ‘Nisab’ for zakat. Zakat is 2.5% of your total annual wealth.
Nisab is the minimum amount of wealth that is the threshold to calculate your zakat. If anyone owns more than Nisab then it becomes obligatory for them to pay the zakat. According to Islamic law, the nisab or minimum threshold of wealth is determined by two set values;
3 ounces of Gold (87.48 grams) or its equivalent in cash.
21 ounces of Silver (612.36 grams) or its equivalent cash.
If you want to calculate your own zakat, first you have to tally up all the assets that you have owned for the past year;
- Gold & Silver + cash +investment property + Debts Owed to You + Investment Property + Shares & Stocks + business Assets = Your Total Income
- Then total up your immediate needs and expenses;
- Personal & Living Expenses + Business expenses + debts you own = Your Living Expenses
You can calculate your total Zakatable wealth as follows;
Your Total Income – Your Living Expenses = Your Zakatable Wealth
And you can calculate your Zakat as follows;
Your Zakatable Wealth x 2.5%= Total Zakat You Owe for the Year
Why Zakat Calculators Are Important for Your Zakat Calculations?
If your assets are too many, you will need a lot of paper and pencils to calculate the zakat that is due to you. On the other hand, if you are clever enough about things, you can calculate your zakat using a Zakat calculator. Many Zakat calculator tools are available online, which allow you to sort out your charity matters in an easy manner. One important consideration in this regard is that you must use a Zakat calculator that is reputed enough by the digital audience. One zakat calculator for 2021 that you can try is the Transparent Hands, zakat calculator.
A Bit about Transparent Hands and how can you calculate Zakat?
Transparent Hands is Pakistan’s biggest crowdfunding platform. It offers a complete range of free healthcare services including medical and surgical treatments, medical camps, and telehealth facilities to the underprivileged community of Pakistan. The platform provides visibility to underprivileged patients and builds a personal and trusted bond between patients and donors while ensuring complete transparency. It also sets up free medical camps in the rural areas of Pakistan in which, free medical consultation, free medicines, and free diagnostic tests are provided to deserving patients. Donors from all over the world can use the Transparent Hands crowdfunding web portal and donate through 100% secure payment modes. They could select any patient, fund the treatment and receive regular feedback and updates until the patient has recovered completely.
Who is eligible to Receive Zakat?
According to the Holy Quran, these are the eight categories of Zakat recipients in Islam:
- Al-Fuqara (The poor); you can give Zakat to the poor who live below the poverty line and do not have enough money to meet their daily needs.
- Al-Masakin (The needy); you can give Zakat to Masakin who do not have any source of income and possessions.
- Freeing captives: Slavery is prohibited in today’s world, but many people still live their lives as slaves. Zakat can be spent to exempt such slaves from their masters.
- Debtors: Zakat can be given to someone who is in debt and unable to pay it back. So, they can use the money from Zakat to pay off their debts.
- Zakat collectors: Many authorized organizations and NGOs collect Zakat from others and distribute it among the needy and poor.
- Who converted to Islam: Zakat can be given to people who are newly converted to Islam and do not have enough to meet their daily expenses.
- In the path of Allah: Zakat can be given to the people who are fighting in the name of Islam and staying away from their homes.
- Wayfarer (Travellers): Zakat can be given to the refugees who left their countries searching for a safe place. You can also give Zakat to travelers traveling alone in another country who need money to meet their expenses.
How to Calculate Zakat?
In Islam, there is a proper ‘Nisab’ for Zakat. Zakat is 2.5% of your total annual wealth.
Nisab is the threshold to calculate your Zakat. If anyone owns more than Nisab, then it becomes obligatory for them to pay the Zakat. According to Islamic law, the nisab, or minimum threshold of wealth is determined by two set values;
- 3.1 ounces of Gold or 7.7 tola of gold /equivalent in cash.
- 21 ounces of silver or 21.6 tola of Silver /equivalent cash.
If you want to calculate your own Zakat, first, you have to identify all of your zakat-able assets.
- Gold & Silver + cash +investment property + Debts Owed to You + Investment Property + Shares & Stocks + business Assets = Your Total Income
- Then total up your immediate needs and expenses;
- Personal & Living Expenses + Business expenses + debts you own = Your Living Expenses
You can calculate your total Zakatable wealth as follows;
- Your Total Income – Your Living Expenses = Your Zakatable Wealth
And you can calculate your Zakat as follows;
- Your Zakatable Wealth x 2.5% = Total Zakat You Owe for the Year
Updated Zakat Calculator by Transparent Hands
Calculating your Zakat on your own can be a bit of a hassle. If you have many assets and properties, the chances are high that you will find calculating Zakat quite tough. Accurate calculation of Zakat is important; only paying the actual dues you owe will bring you the spiritual benefits that are promised for Zakat donors. Such an accurate calculation is hardly possible if you are still conventionally calculating your Zakat on a piece of paper.
Online Zakat calculators allow you to calculate Zakat in a very smooth manner. Instead of doing complex math on a piece of paper, you can calculate your Zakat by just typing the right figures in the right columns.
Why do we say opt for the Transparent Hands zakat calculator? Well, there are many reasons why we recommend this calculator for your zakat calculations. It features a simple interface, is easy to use, super-fast and reliable. On the main page of the calculator, you will see several empty columns against the title of the asset. Just enter the data in the right column, and you are done.
Transparent Hands
Transparent Hands is Pakistan’s biggest crowdfunding platform. It offers a complete range of free healthcare services, including medical and surgical treatments, medical camps, and telehealth facilities, to the underprivileged community of Pakistan. Transparent Hands is also registered in the US as Transparent Hands Foundation US INC.
The platform provides visibility to underprivileged patients and builds a personal and trusted bond between patients and donors while ensuring complete transparency. It also sets up free medical camps in the rural areas of Pakistan in which free medical consultation, free medicines, and free diagnostic tests are provided to deserving patients.
Donors from all over the world can use the Transparent Hands crowdfunding web portal and donate through 100% secure payment modes. They could select any patient, fund the treatment, and receive regular feedback and updates until the patient has recovered completely.
For better experience click here to download our mobile apps,
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