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Zakat Calculator: Stocks & Investments
March 15, 2025 · 1 min read
Calculating Zakat on stocks depends on your intention: are you an investor or a trader?
For Long-Term Investors
If you buy and hold stocks for their dividends and long-term growth, Zakat is due on your share of the company's Zakatable assets (cash, receivables, inventory). Many scholars simplify this to 2.5% of the current market value.
For Active Traders
If you frequently buy and sell stocks, they are treated as trading goods. Zakat is 2.5% of the total market value of your portfolio on your Zakat date.
Example
You hold EGP 100,000 in stocks for investment. Your simplified Zakat would be: 100,000 × 2.5% = EGP 2,500.