Zakat on Stocks Calculator

Calculate zakat on your stock portfolio based on investment intention: active trading or long-term holding.

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Trading stocks: Zakat = Full Portfolio Value * 2.5%. Long-term stocks: Zakat = Annual Dividends * 2.5% (conservative method) OR proportional company zakatable assets.
$50,000 trading portfolio -> $1,250 zakat. $50,000 long-term with $2,000 dividends -> $50 zakat (dividends method).

Is zakat due on stocks and shares?

Yes, zakat is due on stocks and shares, but the calculation method depends on your investment intention: active trading or long-term holding.

How is zakat calculated on trading stocks?

For stocks bought with the intention of active trading (buying and selling for profit), you pay 2.5% zakat on the full market value of the portfolio on your zakat due date.

What about long-term investments?

For long-term investments held for capital appreciation, some scholars say to pay zakat only on dividends received. Others say to pay 2.5% on the zakatable portion of the company's assets (liquid assets only). Consult your scholar.

Do I pay zakat on the stock value or company assets?

For trading stocks: pay on full market value. For long-term holdings: opinions differ - either on dividends only, or on the portion of company assets that would be zakatable (cash, inventory, receivables).

What if I don't know the company's asset breakdown?

If you cannot determine the zakatable portion of a company's assets, many scholars permit using the simpler method of paying 2.5% on the full market value to be cautious and fulfill your obligation.

Are retirement accounts (401k, IRA) subject to zakat?

If you have full ownership and access to the funds, zakat is generally due. If funds are locked and penalties apply for withdrawal, scholars differ - some say zakat is deferred until you can access them.

What about mutual funds and ETFs?

Mutual funds and ETFs are treated like stocks. Calculate based on your intention: trading (full value × 2.5%) or long-term holding (dividends or proportional zakatable assets).

When do I calculate the stock value?

Calculate the market value of your stocks on your annual zakat due date. Use the closing price on that specific date to determine the total portfolio value.

Can stock losses offset zakat?

Zakat is calculated on what you currently own on your zakat due date. If your portfolio value is below nisab, no zakat is due. Previous losses don't create a future zakat credit.

What is the difference between trading and investment intentions?

Trading intention: you actively buy and sell to profit from price fluctuations. Investment intention: you hold for long-term growth and dividends. Your intention at purchase determines the zakat method.