Zakat is one of the Pillar of Islam and a way to purify your wealth for the will of Allah (SWT). It is payable on assets owned over one lunar year. It is calculated as 2.5% of the total wealth.

The collected amount is paid first to zakat collectors, and then to poor Muslims, to new converts Islam, to Islamic clergy, and others.IslamicFinder Online Zakat Calculator 2020 provides you a step by step method to calculate Zakat on your assets.

Step 1: Enter the Value of Nisab in your local currency. According to Sharia Law, Nisab is the minimum amount a person possesses for over a year in order to be obliged to pay Zakah. You can calculate nisab in terms of either Gold or Silver value. For Silver, the standard nisab is 21 ounces of silver (612.36 grams) or its equivalent in cash.  For Gold, the standard nisab is 3 ounces of gold (87.48 grams) or its cash equivalent. (Note: check the value of gold and silver in your local currency)

Step 2: In the next step, add the quantity of Gold and silver that you have possessed for more than a year and its price per 10 gram in your local currency. Each type (in Carats) of Gold you possess must be added separately as their values are different.

Step 3: In this step, add the values of Cash, Properties and stocks in your possession for more than a year as Zakat is applicable on them as well.

Step 4: In this final step, you need to add your debts and liabilities, the payments that are due on you and debts that you have to give. These amounts are subtracted from your assets/possessions in the final calculation to determine the Zakah obligatory on you.

Step 5: After completion of the steps above, a summary appears which tells you whether you are eligible to pay Zakat and, if you are, the zakat that you have to pay appears. The payable zakat is 2.5% of your overall possessions. You will also have the option to print this summary to keep a record of paid Zakat every year. 

Another type of Zakat that is Wajib (compulsory) on Muslims is Zakah al-Fitr, often referred to as Sadaqah al-Fitr. The word Fitr means the same as Iftar, breaking a fast and it comes from the same root word as Futoor which means breakfast. Thus, Islamically, Zakah al-Fitr is the name given to charity which is distributed near the end of Ramadan.  The amount of Zakah is the same for everyone regardless of their different income brackets. The minimum amount is one Saa` (two handfuls) of food, grain or dried fruit for each member of the family. This calculation is based on Ibn Umar's report that the Prophet (PBUH) made Zakah al-Fitr compulsory and payable by a Saa` of dried dates or a Saa` of barley. The Companion, Abu Sa`eed al-Khudree said,.."In the Prophet's time, we used to give it (Zakah al-Fitr) as a Saa` of food, dried dates, barley, raisins or dried cheese." (al-Bukhari - Arabic/English vol. 2, p. 340, no. 582)