Zakat calculator

Zakat on stocks & ETFs

Zakat on equities depends on your intent. Long-term investors and active traders apply different rules. This calculator covers both.

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

Read our methodology and editorial policy.

The rule

For active traders treating shares like inventory, the entire market value of holdings is zakatable at 2.5%.

For long-term investors, the AAOIFI standard zakatable base is roughly 25% of market value (a proxy for the company's underlying zakatable assets — cash, receivables, inventory).

If the company publishes a per-share zakatable assets figure (some Gulf-listed companies do), use that exact number instead of the proxy.

Trader: Market value × 2.5% | Long-term investor: Market value × 25% × 2.5% (= 0.625%)

Calculate yours

The rest is treated as trading inventory and zakated at the full rate.

Zakat due

$0

Worked example

A $50,000 portfolio held entirely as long-term investment

Expected zakat ≈ $312.5

Notes

  • Dividends received during the year are added to your cash zakat base, not double-counted here.
  • Capital gains realised during the year flow into cash and are zakated as cash if still held at the hawl date.

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