Trade Zakat Calculator

Trade zakat (zakat on stock-in-trade) is an annual obligation on every asset held for sale, including stock, receivables, and cash. It is computed on net zakatable assets after deducting short-term liabilities, at a rate of 2.5%, provided the nisab threshold is met and a full year has elapsed.

Core formula

Aggregate the zakatable assets at their current value, deduct short-term liabilities, then multiply by the zakat rate.

Zakat = (Cash + Receivables + Inventory Market Value − Liabilities) × 2.5%

Nisab threshold

Nisab is the minimum threshold below which zakat is not owed. It is typically pegged to either 595 grams of silver or 85 grams of gold at the current market price — it varies with metal prices.

Rate: 2.5% or 2.577%?

The rate is 2.5% on a lunar (Hijri) year. On a solar (Gregorian) year, the extra ~11 days bump the rate to ~2.577% to keep the math equivalent.

Worked example

Assume a business closes its zakat year with the following balances:

1. Bank cash: 200,000 SAR
2. Collectible receivables: 150,000 SAR
3. Inventory at market value: 350,000 SAR
4. Short-term liabilities: 100,000 SAR
5. Zakatable base = 200,000 + 150,000 + 350,000 − 100,000 = 600,000 SAR
6. Zakat = 600,000 × 2.5% = 15,000 SAR

Pre-distribution checklist

• Pick a fixed zakat anniversary date and stick to it annually.
• Only include receivables you genuinely expect to collect.
• Value inventory at today's market price, not cost.
• Confirm the base meets nisab before distributing.
• Deduct only short-term liabilities related to the business activity.