Zakat on Business Calculator
Enter your business assets and liabilities to calculate zakat due on trade goods and liquid business assets.
What business assets are zakatable?
Zakatable business assets include: inventory for sale, cash in business accounts, accounts receivable (money owed to you), and raw materials intended for sale. Fixed assets like buildings and equipment are typically not zakatable.
How do I calculate zakat on my business?
Calculate: (Inventory Value + Cash + Receivables - Current Payables) × 2.5%. This gives you the zakat due on your zakatable business assets for the lunar year.
Can I deduct business debts?
Yes, you can deduct current liabilities and debts that are due within the year (accounts payable, short-term loans) from your zakatable assets before calculating the 2.5% zakat.
Are fixed assets included in zakat?
No, fixed assets used in running the business (equipment, machinery, buildings, vehicles) are not subject to zakat. Only trade goods and liquid assets are zakatable.
When should I calculate business zakat?
Business zakat is calculated annually on your zakat due date (after one lunar year of owning the business). Many choose to align this with their financial year-end or Ramadan.
What if my inventory value fluctuates?
Calculate the value of your inventory on your zakat due date. You can use the wholesale value, cost price, or current market value depending on scholarly opinion you follow.
Do I pay zakat on business and personal wealth separately?
Your personal wealth and business wealth are combined when determining if you meet nisab. If the total meets nisab, you pay 2.5% on all zakatable wealth (personal + business).
What about accounts receivable that may not be collected?
Strong receivables (likely to be paid) are included in zakatable assets. Doubtful or bad debts can be excluded or you can pay zakat when actually received, depending on the scholarly opinion you follow.
How do I value my inventory?
You can use: 1) Cost price (what you paid), 2) Wholesale value (what you would sell in bulk), or 3) Market value (current selling price). Consult your local scholar for the preferred method.
Is there zakat on work-in-progress?
Yes, work-in-progress intended for sale is considered part of your business inventory and is subject to zakat at its current value on your zakat due date.