Zakat on Shares Calculator
Work out the zakat due on a shareholding by combining the market value of the shares with dividends received and subtracting short term liabilities.
Recent
Formula
How the calculation works
Zakat is due on wealth that has been held for a full lunar year, so the calculator values the shares at the current market price rather than at what you paid for them.
Dividends already received count as part of the wealth because they are cash in hand, and short term liabilities that fall due now are subtracted to avoid taxing money you owe.
The net figure is then multiplied by the zakat rate, usually 2.5 percent, and divided by the shares to show the obligation on each one.
Common mistakes
- Using the original purchase price instead of the market value on the zakat date, which understates or overstates the obligation as prices move.
When to use it
- Use it at the end of your zakat year to value a demat holding and the dividends it paid before you calculate the total.
Worked example
Holding 1,250 shares at 48.75 each with 8,600 in dividends and 15,000 of liabilities gives a share value of 60,937.50, zakatable wealth of 54,537.50, zakat of 1,363.44 and 43.63 per share.
Common questions
Are all shares fully zakatable?
This uses market value as the base, which is the common view for shares bought for resale; shares held purely for income may be assessed on the underlying assets instead.
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