Zakat On Business Assets Calculator

Work out zakat on business assets instantly with clear inputs, formula shown and shareable results.

About Zakat On Business Assets Calculator

Business zakat is generally assessed on trading assets — cash, receivables and inventory held for sale — less liabilities falling due, with fixed assets used in the business excluded. If the net figure equals or exceeds the nisab and has been held for a lunar year, the customary rate is 2.5%.

Formulas

Net zakatable assets

Net = Cash + Receivables + Tradeable inventory - Short-term liabilities

Zakat due

Zakat = Net zakatable assets x 2.5%, if net >= nisab

Worked example

With the default values below, Zakat On Business Assets Calculator returns Zakat payable at 2.5% of $29,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Cash, bank and trade receivables: 850,000
Tradeable inventory at market value: 620,000
Liabilities due within the year: 310,000
Nisab threshold (gold or silver equivalent): 480,000

Results

Zakat payable at 2.5%: $29,000.00
Net zakatable business assets: $1,160,000.00
Amount above the nisab threshold: $680,000.00
Eligibility: Above nisab — zakat is due

Step by step

1Values used
2Net zakatable assets
3Zakat due
4Zakat payable at 2.5%= 29,000.00
5Net zakatable business assets= 1,160,000.00
6Amount above the nisab threshold= 680,000.00
7Eligibility= Above nisab — zakat is due

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative calculation using commonly applied rules. Treatment of receivables, bad debts, work in progress, the nisab basis and the lunar-year condition differ between schools of jurisprudence. Consult a qualified scholar or zakat authority.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative calculation using commonly applied rules. Treatment of receivables, bad debts, work in progress, the nisab basis and the lunar-year condition differ between schools of jurisprudence. Consult a qualified scholar or zakat authority.

Frequently Asked Questions

Are fixed assets zakatable?

Generally no — premises, machinery and vehicles used in the business are excluded. Property or equipment held for resale is inventory and is included.

How is inventory valued?

Most scholars use current market selling value at the zakat date rather than historical cost.