Introducing Wahed's Revamped Zakat Calculator: Simplifying Your Obligatory Charity
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We are excited to announce the launch of Wahed's Revamped Zakat Calculator, an easy-to-use tool developed in collaboration with our Shariah Supervisory Committee (SSC). This calculator is specifically designed to calculate Zakat on the investments held within your Wahed portfolios – including ETFs, stocks, sukuk funds, gold and cash. Please note, it does not cover overall Zakat obligations on other personal assets such as jewellery, real estate, personal savings, or business holdings. For a complete calculation of your Zakat obligations, please consult a qualified Shariah Scholar.
Understanding Zakat
Zakat, one of the five pillars of Islam, is an obligatory charity aimed at redistributing wealth from those with surplus assets to those in need. Every Muslim holding wealth above a certain threshold (Nisab) is required to give 2.5% of their excess assets annually. These contributions support eight designated categories – including the poor, the needy, and those in debt – thereby fostering greater economic equality and social harmony.
The Noble Qur'an beautifully encapsulates this obligation:
“Take from their wealth a charity by which you purify them and cause them increase, and invoke [Allāh's blessings] upon them...” (Surah At-Tawbah 9:103)
Our Calculation Methodology
Working closely with the SSC, we've adopted a structured approach tailored specifically to your investments within Wahed portfolios:
- Equity Investments:
- Trading (Short-term): Fully Zakatable (100% of market value)
- Wealth Preservation (Long-term): 30% of market value
- Sukuk Funds: 50% proxy to estimate the Zakatable portion.
- Gold, Silver, and Cash: Fully liquid and Zakatable at 100%.
How to Use the Wahed Zakat Calculator
Calculating your Zakat obligations on your Wahed investments has never been simpler:
- Open the Wahed Zakat Calculator.
- Select Calendar Type: Choose Lunar or Solar.
- Select Country: Identify your country of residence.
- Investment Intention: Specify whether your portfolio is for Long-Term Wealth Preservation or Short-Term Trading.
- Select Portfolio: Choose the portfolio you hold.
- Enter Portfolio Value: Input your current portfolio value from the Wahed app.
- Click Calculate: Receive an instant calculation of your Zakat obligation.
Why This Methodology?
The SSC recognises ETFs as single portfolios, fulfilling the principle of ‘Nama’—growth potential. This approach simplifies complex asset breakdowns while ensuring adherence to Shariah principles.
Summary of Zakat Calculations
(Note: The 2.5% rate applies to lunar calendar calculations. For solar calendar calculations, use 2.577% and 2.5775% in a leap year.)
Paying Your Zakat
You do not need to withdraw funds from your Wahed portfolio to pay Zakat. Instead, you can fulfil this obligation from other cash sources such as savings, salary, or liquid assets – thereby maintaining your investment position.
Disclaimer: Shariah compliance at Wahed is based on the certification and guidance of our Shariah governance body, the Shariyah Review Bureau (SRB). Interpretations may vary. The Zakat amount provided in the calculator is an indicative calculation specific to your Wahed portfolio's valuation as of a given date, based on the methodology approved by our Shariah Supervisory Committee (SSC). This calculation assumes your portfolio's original asset allocation at the time of assessment. Portfolio rebalancing, market fluctuations, or changes in asset composition over time may slightly affect the final Zakat amount. Additionally, other fiqh-based approaches may apply, considering factors such as completion of a full lunar year (Hawl), your personal financial circumstances, Nisab thresholds, or alternative scholarly views—any of which could ultimately influence your Zakat obligation. Therefore, while we offer this indicative calculation as guidance, we strongly recommend reviewing and understanding our calculation methodology, applying it according to your personal circumstances, and, where necessary, seeking advice from a qualified Islamic scholar or professional. For further information on how this calculator works and comprehensive details on Zakat calculation, please refer to this document. You may also consult the latest Zakat guidance fatwa issued by our SSC here.
Risk Warning: Equity investments are not readily realisable and involve risks, including loss of capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. Investments of this type are only for investors who understand these risks. You will only be able to invest in the company once you have met our conditions for becoming a registered member.
Please visit www.wahed.com/uk/ventures/risk for our full risk warning.
Risk Warning: As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.
Please visit www.wahed.com for our full terms and conditions
Maydan Capital Limited, trading as WahedX, is registered in England and Wales (Company No. 13451691), registered office: 87-89 Baker Street, London, W1U 6RJ, UK. Maydan Capital Ltd (FRN: 963613) is an appointed representative of Wahed Invest Ltd (FRN: 833225), an authorised and regulated firm by the Financial Conduct Authority.Wahed Invest Ltd. is registered in England and Wales (Company No. 10829012), registered office: 87-89 Baker Street, London, W1U 6RJ, UK and is authorised and regulated by the Financial Conduct Authority: FRN 833225.
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As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.
Wahed Invest LLC (Wahed) is a US Securities and Exchange Commission (SEC) registered investment advisor. Wahed Invest provides brokerage services to its clients through its brokerage partner Apex Clearing Corporation, a member of NYSE - FINRA - SIPC and regulated by the SEC and the Commodity Futures Trading Commission. Registration does not imply a certain level of skill or training. Wahed does not intend to offer or solicit anyone to buy or sell securities in jurisdictions where Wahed is not registered or a region where an investment practice like this would be contrary to the laws or regulations. Any returns generated in the past do not guarantee future returns. All securities involve some risk and may result in loss. Any performance displayed in the advertisements or graphics on this site are for illustrative performances only.
Disclaimer: Wahed Technologies Sdn Bhd ("Wahed") is a Digital Investment Manager (DIM) licensee issued by Securities Commission Malaysia (eCMSL/ A0359/2019). It is part of Wahed Inc. Wahed is authorized to conduct a fund management business that incorporates innovative technologies into automated portfolio management services offered to clients under a license issued pursuant to Schedule 2 of the Capital Markets Services Act 2007. All investments involve risks, including the possibility of losing the money you invest, and the track record does not guarantee future performance. The history of returns, expected returns, and probability projections is provided for informational and illustrative purposes, and may not reflect actual future performance. Wahed is not responsible for liability for your trading and investment decisions. It should not be assumed that the methods, techniques, or indicators presented in this product will be profitable, or will not result in losses. The previous results of any trading system published by Wahed, through the Website or otherwise, do not indicate future returns by that system, and do not indicate future returns that will be realized by you.
Wahed Invest Limited is regulated by ADGM’s Financial Services Regulatory Authority (“FSRA”) as an Islamic Financial Business with Financial Services Permission for Shari’a Compliant Regulated Activities of Managing Assets and Arranging Custody [Financial Permission No. 220065]. Our ADGM Registered No. is 000004971.
Wahed assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. Any strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. Furthermore, the information presented may not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance.
There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services and should seek advice from an independent advisor before acting on any information presented. Any links to third-party websites are provided strictly as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites nor do we endorse the content and information contained on those sites. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the third-party websites.
