Shares zakat calculator
Use the value of your shares on your zakat date. Any currency works, just use the same one for every box.
- Enter your share values above.
Zakat is due only if all your zakatable wealth together (cash, gold, silver, shares and more) is at or above nisab for a full Islamic year. To check, enter your zakatable total in the full zakat calculator with your other wealth.
How zakat on shares works
Zakat is 2.5% of zakatable wealth held for a full Islamic year above nisab. For shares, the key question is why you hold them:
| Why you hold them | What counts for zakat |
|---|---|
| To sell for profit (trading) | Full market value on your zakat date |
| To keep long term (dividends, growth) | Your share of the company's zakatable assets: cash, goods for sale and money owed to it. A common estimate is 25% of the market value. |
| Dividends and cash you still have | Full amount, like any other cash |
The long-term method follows AAOIFI Shari'ah Standard No. 35 on zakah and many contemporary fiqh councils. Factories, buildings and machines are not zakatable, which is why only part of a long-term share is counted. The 25% rule of thumb is used by the National Zakat Foundation (UK). Some scholars, including many in South Asia, advise paying on the full value of all shares to be safe. If you are unsure, ask a scholar you trust.
Worked examples
Example 1: Trading shares
Sara buys and sells shares through the year. On her zakat date they are worth $8,000.
Example 2: Long-term shares, estimate
Imran keeps $20,000 of shares for dividends and does not plan to sell. Using the 25% estimate, $5,000 counts.
Example 3: A mix, plus dividends
Noor has $4,000 of trading shares, $10,000 of long-term shares and $600 of dividends still in her account.
Funds, ETFs and pensions
- Funds and ETFs are treated like the shares inside them. If you hold them long term, the estimate method is commonly used.
- Pensions: scholars differ. Many say zakat is due only on the part you can access now. Ask your scholar for your own case.
- Non-halal shares: zakat does not make them halal. Many scholars advise selling them and giving away any non-halal income, separately from zakat.
Tools to check your shares
Halal stock apps can show whether a company is Shariah compliant, and some show the zakatable amount per share for the exact method. Three well-known ones:
Musaffa
Halal stock and ETF screener covering many markets, with Shariah reports for each company.
Visit MusaffaZakat Compass is independent. If any link on this page ever becomes an affiliate link, it will be marked "(affiliate)". It never changes the calculator. Investing carries risk; this is not financial advice.
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Zakat Compass is free, with no sign-up. If it helped you, you can support it by getting the printable Zakat Record Book: a yearly worksheet, nisab record, gold list and payment log. Pay what you want, from $3.
Get the Zakat Record BookThis is not zakat. Zakat is never paid through Zakat Compass. Give your zakat directly to people or organisations you trust.
Questions
Is zakat due on shares?
Yes. Shares are wealth, so zakat is due on them once your total zakatable wealth is above nisab for a full Islamic year. How much of the value counts depends on why you hold them.
I hold shares for both trading and the long term. What do I do?
Split them. Put the trading part in the first box and the long-term part in the second box. The calculator adds them up for you.
Which value do I use, buying price or today's price?
Today's market value on your zakat date, not what you paid.
Do I pay zakat on dividends?
Dividends you still have on your zakat date are cash, so they are counted in full.
Can I pay my zakat through Zakat Compass?
No. Zakat Compass only helps you work it out. Zakat is never paid through this site.
More help: 8 worked zakat examples · Zakat rulings and evidence · Gold rate today
For guidance only, not a fatwa and not financial advice. For your own case, please ask a qualified scholar.