People are asking me about the calculation of zakat.. I’ll post a short video on the issue but for now it’s simple:
1. Total the value of your Assets/wealth you have owned for a year or more.
2. Total all liabilities: loans/credit cards/mortgage etc.
Subtract 2 from 1 giving you ‘x’
You will then calculate 2.5% of ‘x’ to give you the total zakat payable. Sometimes this can be very little even though people live lavish life styles because they don’t own a great deal of wealth but are high in credit.
So the formula would be:
[(1) – (2)]/100 x 2.5 = zakat payable.
What is the definition of ‘wealth or assets’ will be covered in the video انشآء الله تعالى.
Allah ﷻ & His Rasool ﷺ know best.