Zakat and Its Meaning?

Zakat is known as an important obligatory form of charity to pay every lunar or Islamic year. However, not every Muslim needs to pay Zakat, but only those who meet the decided criteria or Nisab. Zakat is one of the five important pillars of Islam, without which the faith cannot be completed.

The phenomenon to distribute Zakat comes with many benefits. It is not only beneficial for receivers but for the givers too. For example, it not only helps needy people in their hard times but also purifies the wealth and soul of givers, helping them gain Allah’s pleasure.

The Definition of Nisab

Nisab is the minimum set amount of wealth that makes it obligatory for Muslims to pay Zakat. To become eligible, your wealth must be equal to or above this Nisab for one complete Islamic or lunar year. The 2.5% of the total wealth is decided to be paid as Zakat. Below is the decided value of Nisab based on Gold & Silver:

• 87.48 grams (7.5 tola) of gold
• 612.36 grams (52.5 tola) of silver

What is Zakat Calculator?

Zakat Calculator is an online tool that helps you calculate or find the exact payable amount of Zakat. Here is why you must use the Online Zakat calculator before paying your Zakat for Ramadan 2026:

• It Gives Accuracy: A manual calculation may result in mistakes. However, accuracy is necessary to calculate your payable Zakat. Thanks to Zakat calculators that have made the calculation easy without errors.
• It Saves Your Time: While doing manual calculations, it may take you time to find the results. With online calculators/tools, you can find the accurate amount without wasting your time.
• It Avoids Underpaying: Underpaying your payable Zakat may make you commit a serious sin unintentionally. This is why using tools is the best practice to avoid such mistakes
• It determines the Nisba: Many online Zakat calculators show you the exact amount of Nisab. So, there is no need to worry about nisab while calculating your payable Zakat.
• It Gives You Satisfaction: When you get accurate results and pay the exact amount of Zakat, it offers your inner peace and satisfaction.

How to Calculate Zakat?

The use of online calculators has made it easy to calculate Zakat. However, we come up with the simple steps by following which you can easily calculate your Zakat on gold, cash, or based on other belongings:

Step 1: Check if You Meet the Criteria

The criterion is the Nisab, mentioned above, to know whether Zakat is due or not. You need to ensure that your total wealth is equal to or above this set Nisab. This is applicable for a full lunar or Islamic calendar.

Step 2: Gather Your Zakat Applicable Assets

Below are considered the applicable assets that are applicable for Zakat:

• Gold & Silver
• Cash in hands
• Business assets
• Investments
• Bank savings

Step 3: Exclude Debts

You need to deduct any of the following liabilities:

• Any short-term debts remaining to be paid
• Any bills still pending to pay
• Any loan that is pending repayment

Step 4: Pay 2.5% of the Total Amount

After gathering all assets and deducting unpaid debts, on the total remaining amount, the Zakat is applicable. You need to calculate 2.5% of the total remaining amount, which is your actual payable Zakat.

Benefits of Using NTF Online Zakat Calculator?

Noor Thalassemia Foundation, NTF, offers an online Zakat calculator that helps people calculate the exact payable amount of Zakat. Whether you need to calculate Zakat on Gold, silver, cash, business assets, or to deduct the debts, the NTF Zakat calculator offers you a reliable yet simple process to calculate your payable Zakat with accuracy in no time.

Who Needs to Pay Zakat?

Not every single Muslim is required to pay Zakat. Only those who meet the set criteria, or Nisab, are required to pay. Below are further requirements to be eligible for paying Zakat:

• Only muslims can pay Zakat
• Only adults can pay Zakat
• Only sane Muslims who are capable of managing their wealth
• Muslims whose wealth is equal to or above the Nisab are eligible
• Muslims who have complete control over their wealth

Who is Eligible to Receive Zakat?

Before paying Zakat, everyone must know who is eligible to receive Zakat. Allah (SWT) mentioned 8 types of people in the Quran, 9:60, who are eligible for Zakat:

“Alms-tax is only for the poor and the needy, for those employed to administer it, for those whose hearts are attracted ˹to the faith˺, for ˹freeing˺ slaves, for those in debt, for Allah’s cause, and for ˹needy˺ travellers. ˹This is˺ an obligation from Allah. And Allah is All-Knowing, All-Wise.” (Qur’an, 9:60)

It means you can only pay Zakat to;

• Al Fuqara: Poor people with less or no income
• Al Masakeen Those who cannot afford their daily life essentials
• Zakat Administrators Those who collect and distribute Zakat
• People who are converted to Islam: Support those who are new or converted to Islam
• People in Bondage: Pay to those who are in extreme oppression or slavery
• People with debt: Help debt-ridden people to repay their debts.
• Fi Sabillialh Those who struggle purely for the cause of Allah
• The Wayfarer Those who are stranded travelers and have no money to return home.

Frequently Asked Questions

What assets are not subject to Zakat?

Except for gold and silver, no asset is applicable for Zakat. This includes house, car, furniture, clothes, or any goods that are not for business or trade.

What is the difference between Sadaqah and Zakat?

Sadaqah is considered a voluntary act of charity that anyone can pay to any deserving person at anytime. It can be anything - cash, food, clothes, planting a water cooler, building a school, a Masjid, a hospital, or else. However, Zakat is an obligatory form of charity that every Muslim who meets the set Nisab needs to pay every lunar or Islamic year.

What is the difference between Fitra and Zakat?

Fitra is mandatory to pay every self-supporting adult Muslim who has enough cash or food that exceeds his basic needs. Fitra can be paid on behalf of a person and their dependents. However, Zakat is an important obligation that is payable by any Muslim who meets the set requirements of Nisab. Zakat needs to be paid every lunar or Islamic month.

What is the best time to pay Zakat?

There is no specific time to pay Zakat. If you meet the criteria, you can pay Zakat anytime for one complete lunar/Islamic month. However, most people pay it in Ramadan to get more Barakah and help needy people to celebrate the joys of Ramadan and Eid.

Can I give Zakat to my relatives?

It is permissible to offer Zakat to your distant relatives (Furoo), including brothers, sisters, aunts, uncles, cousins, nephews, nieces, and others. However, you cannot pay Zakat to your close blood relatives (Ussol), including your parents, grandparents, children, and/or grandkids.