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Zakat on a business

Stock at every stage, the cash, the invoices — and everything the business trades with rather than trades in, recorded and then set aside with the reason.

1

What the business holds

Stock at every stage, the money in it, and the money owed to it. Value stock at what it would sell for today — zakat is on what the goods are worth, not on what you paid.

2

What it owes, and what it works with

Premises, machinery and vehicles are not zakatable at any value. Enter them anyway — the working should show what was set aside and why, rather than leaving you to wonder whether they were counted.

3

The threshold

Nisab is measured against everything you own, business and personal together. A shop below the threshold on its own can still be zakatable once your savings sit beside it.

CurrencyAmounts are in it
Measure against

Market price on 2026-09-07, filled in for you. Change it if your local rate differs. Nisab works out at 1,293.3 (612.36g of silver).

Enter what the business holds above and the zakat appears here.

This is a calculator, not a fatwa. How to value part-finished goods, when a debt becomes bad, and which liabilities may be deducted are all questions on which qualified scholars differ, and a business of any size will meet at least one of them. Take the working to someone qualified.

One line decides almost everything

Zakat falls on wealth that turns over, not on the means of turning it. Stock bought to sell is zakatable. The shelves it sits on are not. The van that delivers it is not. The premises are not, however much the lease is worth.

This is the same rule that leaves a family home outside zakat however valuable, and a carpenter’s tools outside it however good. A thing you use to produce wealth is not itself the wealth. Almost every question a shopkeeper has about zakat is answered by deciding which side of that line something falls on.

Stock is valued at what it would sell for

Not at cost, and not at the price you hope to get once the season turns. What the goods would fetch on your zakat date, in the market you actually sell into. Stock that has lost value is valued at the lower figure; stock nobody wants at full price is worth what it will fetch.

Raw materials and work in progress count too, for the same reason finished stock does: they were bought to be sold, and being part-way through that on one particular day does not move them out of it.

Debts, in both directions

An invoice you expect to collect is wealth you hold, and it counts. An invoice you may never collect is where the positions part — the common one leaves it out until the money arrives and pays for that year, the cautious one counts it now. Both are held; the page asks which you follow.

On the other side, only liabilities falling due now come off. Deducting the whole balance of a long loan would leave a business with full shelves owing nothing, which is not what anyone means by the rule.

A company does not owe zakat

People do. A partnership or a limited company is not a person with an obligation of worship, so what each owner does is take their share of the business’s net zakatable wealth, add their own savings and gold to it, and measure that total against the nisab.

Two partners with equal shares can therefore owe different amounts, and one can owe nothing while the other owes plenty — because the threshold is met by the person, not by the shop.

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