How to Use A Zakat Calculator to Evaluate Zakat on Gold?

Zakat is a basic fundamental unit of Islam. Zakat means to purify. It is an obligation and among the pillars of Islam.Zakat is meant to give a specific percentage of your total wealth or money to a charity. It not only includes your money, but it also includes your property and gold. By giving Zakat to the needy ones, you perform an act of goodness and worship.

But you should ensure that to whom you are giving you Zakat because it is not only about giving money. Instead, we need to understand that it should reach the deserving ones. Keep reading this blog post to explore more about Zakat, its history, who is eligible for Zakat, and how to calculate your Zakat.

History of Zakat

Prophet Muhammad ﷺ provided the concept of Zakat and the word Zakat means ‘to purify.’ All Muslims from around the globe follow this obligation. In our community and as Muslims, we must give this Zakat to the needy and poor.

From the very start of Islam, this obligation started when someone is wealthy enough to have some extra amount to support an underprivileged; they have to provide it. Safe to say, it is a tradition of old times.

Why is Zakat Important?

“Establish prayer, pay alms-tax, and bow down with those who bow down.”(2:43)

Zakat purifies your money and wealth. That is why Allah made this an obligation and third pillar of Islam. It is required for every sane Muslim to give Zakat from his wealth each year to the needy when his wealth exceeds the value of the current Zakat nisab.

There are some factors requiring consideration when calculating Zakat. While calculating Zakat, keep these points in your mind:

• Understanding the Zakat Nisab Value
• When to pay Zakat
• To whom we can give Zakat
• You should know how to calculate Zakat

Once you’ve understood these points, you are ready to fulfill your obligation.

Concept of Nisab

The concept of Nisab value is very important. It has a direct relation with the gold and silver values. When calculating the Zakat, one thing that needs to be known is the Nisab Threshold. Nisab value is the minimum amount required for any Muslim, making him eligible to pay Zakat at a specific time.

The total wealth of the Muslim must meet the current value of nisab to make you suitable to pay Zakat. Among all obligatory donations, Zakat has its superior and compulsory place.

In the Quran, the provided nisab value for gold and silver is 612.36g (52.5 tolas) of silver and 87.48g (7.5 tolas) of gold. However, their current value can be different because of the fluctuation of gold and silver prices. But this is fine as you can easily convert the weight in your local currency.

Nisab On Gold

You can calculate Nisab on your gold simply by a formula. The ideal criteria for Nisab of gold is 85 grams. Zakat will be paid by Muslims when they reach the Nisab for currency. It is a simple formula for calculating Nisab for gold.85 grams of gold (gram to gram)equals Nisab (the most precise value).

The calculations will be according to this:

Just Suppose the gold price per gram is = $58 (you can check in your local currency)

Just Multiply Both the values:

                                $58 x 85g = $4930

By using this calculation, you can easily find out the value. According to this, you must pay Zakat.

Calculating Zakat on Gold

Zakat will be 2.5% of the total value of gold that any Muslim owns. You can calculate Zakat on gold through the online Zakat Calculator. But only if your income and savings are on record. However, it requires careful calculation if your income is always fluctuating.

Zakat Calculator is a simple calculator. It just simplifies the process of calculating the amount. Many Zakat Calculators are available online that will allow you to produce a 2.5% dividend based on the value of your wealth.

You can calculate your Nisab Value by entering the value of your wealth and savings. And the calculator will use this information and calculate your Nisab accordingly.One more thing to consider is always remember the amount of debt or loan you have to pay. It is very crucial to calculate Zakat and Nisab.

Confirm this by checking whether the current balance exceeds the Nisab or not. The total amount of Zakat that applies to any Muslim is 2.5% of the current balance.

Benefits of Paying Zakat

Zakat is an obligation for us from Allah. We must ensure that every needy and poor will get this amount because it is not for them. Allah made this pillar for us. It purifies our money and gives peace to our hearts and souls. It brings every Muslim closer to Islam. It wipes away all the sins and makes us more religiously healthy and wealthy.

Every Person who is a Muslim, Baligh, sane, and has a relative value of wealth (according to the current value of Nisab) must pay Zakat to the needy.

“They ask you O Prophet in what way they should donate. Say, “Whatever donations you give are for parents, relatives, orphans, the poor, and needy travellers. Whatever good you do is certainly well known to Allah” (2:215)

And indeed, whatever you do for the people of Allah (سُبْحَانَهُ وَتَعَالَى), He shall reward you with more blessings.

Why Do We Pay Zakat on Gold?

Gold is considered a valuable thing many people use to save for their future. It is a type of financial savings in the form of gold. But as Muslims, we should always remind ourselves that there is nothing superior to our religion.

Money and wealth are gifts from Allah. And we need to return it to the path of goodness and virtue. Zakat reminds us that we must help others.Zakat helps us aid the community in becoming financially stable. It decreases the poverty ratio within society.

You can provide food, money, clothes, and shelter to suitable individuals. Begin your Zakat journey with the nearest people. Look for someone eligible in your family or relatives. Then, you can search for people in your neighborhood, friends, or people you may know.

Conclusion

As part of Islamic Religion, every Muslim must follow all the obligations. Zakat is a crucial pillar that allows us to help our Muslim brothers. Therefore, we need to have faith in all pillars of Islam. You will never get poor by giving Zakat.

It is a way to gain the acceptance of Allah (سُبْحَانَهُ وَتَعَالَى) and his blessings. It will also purify your money and bring barakah to it. It is a Promise from Allah (سُبْحَانَهُ وَتَعَالَى), and He is the best keeper of promises.