Zakat on stocks calculator

How zakat on stocks is worked out

Zakat is due once a lunar year on wealth above the nisab, at 2.5%. For shares, scholars distinguish by why you hold them:

• Trading: shares bought to sell for a profit within the year are trade goods. Zakat is 2.5% of their full market value on your zakat date.
• Long-term: shares held for dividends and growth. Zakat is due on your share of the company's zakatable assets (its cash, receivables and inventory), not on the whole share price. AAOIFI's Shari'a Standard 35 sets out this method.
• The 30% estimate: a company's zakatable assets are rarely known to its shareholders. Some zakat bodies, such as the UK's National Zakat Foundation, accept treating 30% of the shares' market value as zakatable when the figure is unknown. You can change the percentage, or enter the zakatable assets per share from the company's balance sheet when you have it.
• Nisab: the threshold is the value of 85 grams of gold (or 595 grams of silver, which many scholars prefer as it reaches more people). Add your other zakatable wealth so the total is compared with the nisab.
• Solar year: if you count your zakat year by the Gregorian calendar, the rate is 2.577% to make up for the longer year.

Schools differ on several of these points, and in the Ja'fari school khums applies instead. This calculator is a guide, not a fatwa: check with a scholar you trust. See also the purification calculator, the halal stock screen and halal ETFs.