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Finance & Tax

Inventory Zakat Calculator

Calculate inventory zakat line by line at current market value

Inventory Zakat Calculator
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Inventory items

Add each item with its quantity and today's market price.

DescriptionQuantityUnit market priceLine total
0

Direct supplier debt on this stock.

Roughly 22,500 SAR — refresh based on today's silver price.

Total inventory value

0SAR

Zakatable base

0SAR

Below nisab — no zakat

Zakat due

0SAR

How does it work?

Inventory zakat is a branch of trade zakat, computed at line-item granularity for warehouses or multi-SKU stores. This calculator lets you enter every item with its quantity and today's market value to roll up the zakatable base correctly.

Market value, not cost

Zakat in Islam is computed on the current market value of inventory, not its cost basis. The principle: zakat is owed on the actual money you hold today — i.e. what you would receive if you sold the stock now.

Formula

Zakat = (Σ (quantity × market price) − inventory liabilities) × 2.5%

Worked example

An online retailer holds three SKUs:

  1. Phone A: 50 units × 2,000 SAR = 100,000 SAR
  2. Watch B: 30 units × 800 SAR = 24,000 SAR
  3. Headphone C: 200 units × 150 SAR = 30,000 SAR
  4. Total inventory = 154,000 SAR
  5. Inventory liabilities (supplier credit) = 20,000 SAR
  6. Base = 154,000 − 20,000 = 134,000 SAR
  7. Zakat = 134,000 × 2.5% = 3,350 SAR

Practical tips

  • Do a full physical count on zakat day.
  • Pull market prices from current sales listings, not purchase invoices.
  • Exclude damaged or unsellable stock.
  • Include goods in transit if title has already transferred.

Frequently Asked Questions

Why market value rather than cost?

Because zakat is on the real money you hold on the day of payment. If prices rise, zakat rises; if they fall, zakat falls — the real number is what you could realize today.

Do I roll up inventory from all branches?

Yes — any stock-in-trade you own enters the base, regardless of warehouse or branch.

What about seasonal stock?

Valued at current market price. If it has fallen below cost because of off-season slowness, that still doesn't change the rule — market is the reference.

How about returns?

Include them if they are saleable. If damaged, exclude them entirely.

Do I exclude slow-moving stock?

No — any stock listed for sale, even slow movers, enters the base at today's market value.

Is nisab on inventory alone or all assets?

If the business has cash and receivables too, sum them for nisab (see Trade Zakat Calculator). For inventory-only computation, set the nisab to a meaningful baseline.

When you run the same sum every day

Invoicing every day? In Snad each invoice posts its entry and updates your stock automatically.

Free plan, no end date · 7-day trial, no card

  • Accounting, inventory and ZATCA e-invoicing in the same software
  • Tax and balances are computed from your own transactions, so no figure moves to a separate spreadsheet