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Zakat Guides & FAQs







Do I need to pay Zakat on stocks & shares?

Yes but the amount depends on the kind of stock and share. Have a read of our simple or more detailed guidance. 

Can I deduct my Student loan repayments from Zakat?

Can I deduct my Student loan repayments from Zakat?

How do I calculate Zakat on Crypto?

Use the IFG Zakat Calculator and the work is done for you. Have a read of our detailed guidance here

How do I calculate Zakat on gold?

The simple answer is by using our Zakat calculator. You can read detailed guidance here.

How do I calculate Zakat on sukuk funds, mutual funds, etc,

The simple answer is by using our Zakat calculator. You can read more detailed guidance here

Zakat Calculation FAQ

Zakat is a big old subject with so many fiddly questions. In this FAQ (which we will add to as we go alone) we aim to cut through the noise and help you get the answer you need quickly.
We also have a carefully-crafted zakat calculator designed to quickly calculate your zakat – but in an accurate way. Check it out here.
(FYI, we do not charge any admin fee if you do pay zakat via IFG’s Calculator. Nothing. Zilch. Just a community service.)
If you’re really serious about zakat, Volume 1 and Volume 2 of Sh. Qaradawi’s Fiqh of Zakat is the must read book. It is a great book to put children to sleep too.
  1. VIDEO: Introduction Zakat and How to Calculate it from start to finish
  2. What is Zakat?
  3. Introduction Zakat on Investments
  4. Calculate zakat on stocks & shares – simple & detailed guidance
  5. Calculate zakat on loans
  6. Calculate zakat on funds, mutual funds, index funds, sukuk funds etc.
  7. Calculate zakat on pensions, SIPPs, Final Salary Pensions
  8. Calculate zakat on startups
  9. Calculate zakat on business
  10. Calculate zakat on gold
  11. Calculate zakat on crypto assets, bitcoin, altcoins etc
  12. Calculate zakat on property, buy-to-let and family homes
  13. Zakat on art, NFTs, & Collectibles

Zakat Calculator Guidance

We know it can be particularly confusing to know what to include when you are calculating your zakat so here is some guidance across each of the asset classes.
We also want to be transparent about how we have calculated your zakat due based on the asset information in our calculator, so you feel confident you are paying the right amount. 
Zakat due = (zakatable assets - what you owe) x 0.025
Zakatable assets - the % of your total asset value that you are required to pay zakat on. This is the amount assumed in liquid assets
what you owe - this is equivalent to 'debt'

 Asset class

 What to include in our calculator 

Zakatable asset amount


Zakat is payable on all of your money and not just your savings.

If you have rare or precious collector coins then these are likely to be classified as assets rather than cash and would not attract zakat (as long as you are holding them as an investment.)


Bank Account

Zakat is payable on your savings. If you have any interest (riba), this should not be included here and should all be given away


Gold & Silver

There are two schools of thought on whether you need to pay zakat on everyday gold and silver. If you are a Hanafi then the position is that you should pay zakat on this jewellery too.

Some of the other schools exclude jewellery you wear from your calculation.



For Islamic mortgages you can deduct only the next month's payment as it is seen as a rent.

For student loans you should only deduct the next month’s payment. For mainstream mortgages you can deduct the next 12 months payments as they are seen as a debt repayment.

Debt is subtracted from your total zakatable asset value before calculating zakat amount

Child Trust Fund

Zakat is due on Child Trust Funds. In the Hanafi school, Zakat is not paid on children's wealth. In other schools, Zakat must be paid on children’s wealth. Please go with the opinion you prefer.  

When the child reaches puberty, it is their responsibility to pay. A parent can choose to pay on their behalf. Child Trust Funds are usually just an equities fund - and we will calculate your zakat on that basis.


Shares & Funds

We ask that you add any short term shares in the ‘other’ asset section as zakat is payable at the full market value

If you bought shares for any other reason (eg. dividend income) or with mixed intentions, then Zakat is payable on the underlying assets of the business and should be included here. In this case we recommend 25% of the market value as a suitable proxy which the calculator will automatically apply.


Assumes short term shares are included in ‘other’ assets


Zakat is not required on defined benefit pensions or `final salary pensions` and therefore we request that these do not get inputted into the calculator 

Defined contribution pensions should be included as the money is actually being invested in something and your eventual pension is linked to the performance of that investment. Your zakatable pension is that portion of your underlying pension that is held in cash, receivables, inventory and other liquid assets. In this case we recommend 25% of the market value as a suitable proxy which the calculator will automatically apply. 


Assumes defined benefit pension is not included


There is an ongoing debate among scholars whether crypto is best seen as a currency or an asset. For the purposes of our calculator we have played it safe and will treat crypto as currency, and calculate 2.5% on the full amount.

For bitcoin and other currencies like it, our personal view is they are best understood as currency as you can actually use them to pay for things.

For crypto tokens that you can’t buy and sell with and you are just investing in it as an asset - our view is that those should be excluded from zakat as long-term investments. However, as we said, we played it safe with the calculator and that's probably the way closest to taqwa.

For NFTs that are held long-term, they are not zakatable. However for any income you make from NFTs, that would be zakatable so please include that here.

For NFTs bought for resale in the next few months, the entire amount would become zakatable and you should include that in "Other Assets".



You will only need to pay zakat on properties that you have an intention of flipping, but we ask for these to be included in the ‘other assets section’.  

Your primary residence (the residence that you live in most of the year) and buy to let properties that you do not intend to resell any time soon are not zakatable, however we have included them in our calculator with no zakat calculation applied so we can analyse your entire portfolio to give you an optimal health check.


Assumes property to flip is included in ‘other’ assets

Business Asset

If applicable, raw materials and work in progress should also be included at their current value


Agriculture Assets

f you have farmland, crops or livestock you are likely going to need to pay zakat on them. However the rules for that are complex and often the payment is non-monetary too, so for simplicity we have left it out of this calculator. However for completeness we wanted to flag this to you so you are aware. For further information on this we recommend Sh. Qaradawi's book "Fiqh Al Zakah".


Start ups

You need to work out how much of a startup's zakatable assets you are directly an owner of. For this you need to know a combination of how much you invested, your percentage shareholding, the last valuation, the zakatable assets. Most people realistically will not know this. But they will know how much they invested. So our `approximation` approach uses this number, takes 25% of that as the likely zakatable assets percentage and works out zakat on that.


Assets Owed

If you are no longer confident you will receive the money owed to you then you do not need to include it here. If you're not confident that your money will be repaid, then no zakat is due on it. If eventually it does get repaid, then you should just pay zakat on it at your next zakat anniversary. Zakat is applicable for the total amount of the loan that has to be repaid regardless of time. In regards to money expected from a sale, zakat is only applied to the money that is due in the next year.



We request that any buy to flip properties, short term shares and SME finance investments are included here.

If you have any other assets that you believe zakat is fully payable on, you can also input them here. 




The Definitive IFG Guide to Zakat