What is Zakat Calculator?

What is Zakat Calculator?

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 poor to wealthy. In Islam, it is the responsibility of wealthy people to help their brothers who are in need.

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 lives 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, there are many people living their lives as slaves. Zakat can be spent to exempt such slaves from their masters.
  • Debtors: Zakat can be given to the 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: There are many authorized organizations and NGOs that collect zakat from others and distribute it among the needy and poor.
  • Who converted to Islam: Zakat can be given to the 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 the refugees who left their countries in search of a safe place, and zakat can also be given to the travelers who are traveling alone in some other country and need money to meet their expenses.

How to calculate your Zakat?

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 Cool?

If your assets are too much and too many, you are definitely going to 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.

Calculate zakat via Transparent Hands zakat calculator!

Some of the zakat calculators available online are not regularly updated, the primary issue lies in conversion rates. This can lead to miscalculated figures. Now, if you are not in the mood of searching for a reliable zakat calculator, we have something that can save you valuable time. Opt for the Transparent Hands zakat calculator! 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. All that you need to do is enter the data in the right column and you are done!

A Bit about 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. 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.

Updated Zakat Calculator by Transparent Hands

Zakat Donations: Key Points to Keep in Mind 

The zakat distribution is guided by some fundamental Islamic principles that one must abide by. Some of these are:

1- Distribution of Zakat collected by the zakat agencies operating on the government level within 12 months.

2- No terms and conditions are imposed while giving the zakat money to the eligible recipient.

3- Zakat money shouldn’t be adjusted or accommodated in any other service. It is a right of the eligible ones and hence, cannot be confused, intentionally or unintentionally, with any other service.

Where Can You Pay Zakat? 

According to the Holy Quran, these are the eight categories of Zakat recipients:

  • Al-Fuqara (The poor); you can give Zakat to the poor who lives 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’s 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 the 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 that needs 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 ounces of Gold/ equivalent in cash.
  • 21 ounces 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

Zakat Calculators: An Overview 

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 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.

The Internet has made our lives super easy, and zakat calculations are no exception to innovation! 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. There are many zakat calculators available online. However, only a few are as good as the Transparent Hands zakat calculator. In addition, some of the zakat calculators available online are not regularly updated; the primary issue lies in conversion rates. It can lead to miscalculated figures. We will talk more about the Transparent Hands zakat calculator in the upcoming lines.

Updated Zakat Calculator by Transparent Hands 

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. What is more, the updated zakat calculator tool makes paying Zakat easy as well, since you have an option to donate to Pakistan’s leading trust organization as well!

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. 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.

Conclusion 

That would be all from this discussion. Did reading this article help you calculate Zakat quickly? We certainly hope so! Calculating Zakat can be a tough cookie to crack at times, but using a Zakat calculator can speed up the process significantly. You will have the value that you need to pay in Zakat in a super quick time if you rely on an efficient zakat calculator like the Transparent Hands zakat calculator. So, with the hope that may your zakat donation become a source of relief for someone who desperately needs it, we bid you farewell from this space!

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