Zakat calculator

Zakat on business inventory

For business owners, zakat applies to the net zakatable assets of the business at the hawl date — broadly inventory, receivables, and cash, less short-term liabilities.

Written by Halal Trading Hub Editorial TeamReviewed by Yusuf AdamLast reviewed June 1, 2026

Read our methodology and editorial policy.

The rule

Inventory held for resale is zakated at its current selling-price value (not cost), at 2.5%.

Cash held by the business is zakated as cash. Receivables you reasonably expect to collect are included; bad debts are not.

Fixed assets used to produce income (machinery, buildings, vehicles used in the trade) are not zakated. Only assets held for resale or as working capital.

Short-term liabilities due within the year are deducted from the zakatable base.

Zakat = (Inventory at selling price + Cash + Likely-collectible receivables − Short-term liabilities) × 2.5%

Calculate yours

Inventory at selling price (USD)

Business cash and bank balances (USD)

Receivables expected to collect (USD)

Short-term liabilities due within the year (USD)(deducted)

Zakat due

Worked example

$100k inventory, $20k cash, $15k receivables, $35k short-term liabilities

Expected zakat ≈ $2,500

Notes

Partners zakate their share of the business, not the entire pool.
If the business has interest-bearing investments, that income is not zakatable — it must be donated separately as it is not lawfully yours.

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