TARF (Turkish American Religious Foundation) Turkish American Religious Foundation Zakat Calculation

🕌 Simplify Your Zakat Calculation

Zakat is one of the five fundamental principles of Islam. It purifies and prospers wealth and strengthens social solidarity.

The calculation process isn't as difficult as it seems. Once you've categorized your assets correctly, you can easily determine your zakat.

Zakat calculation is done in two main parts:

• 1. Goods subject to zakat: Gold, silver, cash, savings, commercial goods, animals, etc.
• 2. Deductible debts: Debts that must be paid within the next year, other mandatory expenses.

After calculating your net assets by taking these two factors into account, you can easily understand whether you are obligated to pay zakat or not.

• 1. Determine the assets subject to zakat in your possession during a lunar year.
• 2. Find your net worth by subtracting any debts that must be paid within the next year.
• 3. If your net wealth reaches or exceeds the nisab amount, you must pay zakat.
• 4. Zakat rate: %2.5 (one fortieth)

Nisab is the minimum amount of wealth that a Muslim must possess to be obligated to pay zakat.

Zakat is only obligatory on those who own property that reaches or exceeds this amount.

The silver nisab is preferred by many scholars because it allows more people in society to give zakat.

Zakat is given not only on income but also on all the property subject to zakat.

Well:

• • Gold
• • Silver
• • Cash
• • Savings
• • Commercial goods
• • Animals

If the total value of these goods you have during a lunar year reaches the nisab amount, zakat becomes obligatory.

• 1. Gather all the cash you have (including the bank, your home, and any money you have and any money owed to you that is likely to be paid).
• 2. Subtract any debts that are due within the next year.
• 3. If the remaining amount is above the nisab value, %2.5 of this amount is given as zakat.

Note: Gold, silver, commercial goods, investment income and animals should also be included in the total zakat calculation.

Zakat should also be given on animals such as camels, cattle and sheep/goats that reach a certain number.

• • Camel: When 5 camels are reached, zakat becomes obligatory.
• • Cattle (cow, buffalo): Zakat is obligatory on 30 cattle.
• • Sheep and goats: Zakat becomes obligatory when 40 sheep or goats are reached.

Animal zakat is paid on live animals at specific rates based on their breed. This zakat is paid on animals raised for production, milk, or reproduction, not for commercial purposes.

Some debts can be deducted from the zakat account:

• • Debts to be paid within the next year
• • Installments of long-term debts up to 12 months
• • Delayed or accumulated payments

However, the following are not deductible:

• • Invoices that are not yet due
• • Long-term debts that will not be paid within the next 12 months
• • Interest (riba) payments

For long-term loans (for example, mortgages or student loans), only the portion that will be paid off in the near term can be deducted.

Additionally, receivables that you believe will be repaid (for example, loans to relatives or friends) are also subject to zakat.

🌙 Result

Zakat is an act of worship that purifies the believer's wealth and strengthens the spirit of solidarity in society.

By giving zakat regularly, every Muslim gains the approval of his Lord and provides hope for those in need.

وَف۪ٓي اَمْوَالِهِمْ حَقٌّ لِلسَّٓائِلِ وَالْمَحْرُومِ

“There is a certain right for the needy and the poor in their property.”

(Adh-Dhariyat, 51/19)