What's the difference between the "trading" and "long-term" methods?

Actively-traded stocks are zakated on their full current market value, same as cash; long-term holdings are, per some scholars, more precisely zakated only on your proportional share of the company's own zakatable assets (cash, inventory, receivables) — a method this tool discloses but can't compute without the company's balance sheet.

Which method should I use if I'm not sure?

If you buy and sell stocks with any regularity intending to profit from price movements, the trading/full-value method is the more commonly applied approach; if you're a genuine long-term buy-and-hold investor, ask a qualified adviser about the underlying-assets method.

Do I owe Zakat on stocks held in a retirement account I can't access yet?

This is a genuine point of scholarly discussion (whether locked/inaccessible wealth is zakatable) that this tool doesn't address — consult a scholar for retirement-account specifics.

What if my portfolio includes non-Shariah-compliant stocks?

This tool only calculates the Zakat amount on market value; it doesn't screen for Shariah compliance of the underlying companies, which is a separate consideration.

Do dividends count separately?

Dividends received add to your cash/savings for Zakat purposes (see the Zakat on Savings calculator) — this tool only covers the portfolio's market value itself.

Is the nisab threshold different for stocks versus cash?

No — the same gold or silver nisab standard and threshold applies; only the zakatable wealth being measured (portfolio value vs. cash) differs.

What rate applies to stock Zakat?

The same 2.5% rate used for cash and savings Zakat.

Should I use the value on the day I calculate, or an average over the year?

Most scholars assess Zakat on stocks based on their value on your Zakat due date (once the hawl/full year has passed), not an average — this tool uses the single value you enter.

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Islamic Tools

Zakat on Stocks Calculator

2.5% Zakat due on a stock portfolio's value above the live nisab threshold.

🔒 Runs entirely in your browser — nothing here is ever uploaded

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Last reviewed 2026-09-06

About the Zakat on Stocks Calculator

Computes the Zakat due (2.5%) on a stock portfolio's market value above the live nisab threshold.

100% Free Runs in Your Browser No Sign-Up Required

How to use it

Enter your portfolio's market value.
Choose whether you hold for active trading or long-term.
Choose the nisab standard.
Read the nisab threshold and Zakat due, if any.

Formula

If portfolio value ≥ nisab: Zakat due = value × 2.5%.

Worked example

A $10,000 actively-traded portfolio, with a live silver nisab of about $1,267: Zakat due is $250 (2.5% of the full value).

Zakat Method Comparison for Stocks

Zakat Method Comparison for Stocks
Holding Purpose	Zakat Base	Basis
Actively traded (bought to resell)	Full current market value × 2.5%	Treated like tradable merchandise ('urud al-tijarah); the standard method this calculator applies
Long-term investment (dividends/growth)	Your proportional share of the company's own zakatable assets (cash, inventory, receivables) × 2.5%	Some scholars hold that only the company's own zakatable assets, not fixed assets like buildings/equipment, should be zakated — requires the company's balance sheet, which this calculator doesn't have access to

Interpreting your result

This calculates Zakat on full market value, the method most commonly applied to actively-traded stocks. Shares held long-term for dividends/growth have a genuinely different, more precise method some scholars recommend instead (Zakat only on your share of the company's own zakatable assets) — this tool can't compute that without the company's balance sheet, so it's disclosed rather than silently applied.

Recommendations

• If you hold shares long-term rather than for active trading, consider asking a qualified Islamic finance adviser about the alternative underlying-assets method, which is often a lower figure.

Frequently asked questions

Because Islamic jurisprudence treats actively-traded goods (including stocks bought to resell) differently from long-term investment holdings — this is a genuine, cited distinction, not this tool inventing a rule.