SalevaWhat this calculator does
A shopkeeper's zakat is mostly about stock. The goods on your shelves are trade goods, and zakat is due on their value once a lunar year has passed and your wealth is above the nisab. This calculator adds up the three things a shop usually holds, stock for sale, cash, and money customers owe you, takes off what you owe right now, compares the result with the nisab, and works out 2.5% of it.
It is an aid to the arithmetic. Scholars differ on some details, such as which debts may be deducted and whether to use the gold or silver nisab. For anything you are unsure about, ask a scholar you trust.
How to use it
- On your zakat date, count your stock and value it at the price you would sell it for today.
- Add the cash you hold, in the drawer, at home and in bank accounts.
- Add the udhaar that you expect customers to pay. Leave out debts you have given up on.
- Enter what you owe and must pay now: supplier bills that are due, wages and rent that are due.
- Set the nisab from today's silver or gold price per gram, or type the amount if you already know it.
A worked example
A general store counts its stock on its zakat date. At today's selling prices the goods are worth Rs 800,000. There is Rs 150,000 in cash and in the bank. Regular customers owe Rs 60,000 that the owner expects to collect. Supplier bills of Rs 110,000 are due this week.
800,000 + 150,000 + 60,000 − 110,000 = 900,000
Silver is Rs 300 a gram in this example, so the nisab is 612.36 × 300 = Rs 183,708. The shop's Rs 900,000 is above it, and the zakat is 900,000 × 2.5 ÷ 100 = Rs 22,500.
What counts and what does not
| Counted | Not counted |
|---|---|
| Goods bought to sell, including stock in the store room | Shelves, counters, fridges, the till and other equipment |
| Cash in the drawer, at home and in the bank | The shop building or the vehicle you deliver with |
| Udhaar you expect to be paid | Debts you have no real hope of recovering |
| Raw materials you will turn into goods for sale | Goods kept for your own household's use |
Valuing your stock
The usual view is that trade goods are valued at their current selling price on the day zakat falls due, not at what you paid for them. If a product has gone up since you bought it, you use today's price. If it has gone down, or is damaged and will only sell at a discount, you use the lower price it will really fetch.
This is much easier with a stock count. A full stock take in one evening gives you the quantities, and your price list gives you the value. Shops that keep stock in a POS app can read the stock value from a report on the day.
Common mistakes
- Counting only the cash. For most shops the stock is far larger than the cash, and it is zakatable.
- Using the purchase price. The value that matters is what the goods sell for on the day.
- Forgetting the store room. Cartons at home or in a godown are stock too.
- Deducting every debt you have. The common approach deducts what is due now, not a long-term amount that is years away.
- Not fixing a date. Pick one date in the lunar year and count on that date every year.
Questions
Should I use the silver nisab or the gold nisab?
Many scholars advise the silver nisab for cash and trade goods because it is lower and so benefits the poor. Others allow the gold nisab. The calculator lets you choose either. Ask a scholar if you are unsure which applies to you.
How much is the nisab?
It is the value of 612.36 grams of silver (52.5 tola) or 87.48 grams of gold (7.5 tola). Because metal prices change daily, enter today's price per gram and the calculator works out the amount.
Is zakat due on udhaar that customers owe me?
The common view is that a debt you expect to be repaid counts as your wealth. A debt that is doubtful is treated differently by different scholars, and many say zakat is paid on it when it is actually received.
Do I pay zakat on stock I bought on credit?
The stock is counted at its value, and the supplier bill that is due is deducted as a debt. The calculator does both when you fill in the stock and the amount you owe now.
Related reading
- How to do a full stock take in one evening
- Udhaar khata: how to give credit without losing the money or the customer
- Profit vs cash: why a profitable shop can still run out of money
Saleva keeps a running count of your stock and its value, so the figure is ready on your zakat date. Get the free Android app.