Zakat on Debts and Loans

Learn which debts reduce your net Zakatable wealth.

Use the Zakat Calculator

Many scholars allow deduction of short-term debts due within the year. Loans you gave to others may be zakatable if repayment is likely.

Quick answer

  • Deduct debts due within the coming year (if your school allows).
  • Do not deduct long-term balances in full.
  • Include loans receivable if repayment is expected.

How to calculate

  1. List debts due within the next 12 months.
  2. Subtract those from your total zakatable assets.
  3. Add loans you gave out if likely to be repaid.
  4. Apply 2.5% if above Nisab.

Common mistakes

  • Deducting the full mortgage balance.
  • Ignoring receivables owed to you.
  • Subtracting debts already covered by savings.
Use the calculator to factor in debts.

FAQ

Can I deduct my mortgage?

Typically only the amount due in the next year is deducted.

Are student loans deductible?

Only the portion due within the year, depending on scholarly opinion.

What if a loan I gave may not be repaid?

If recovery is doubtful, many scholars delay Zakat until repaid.

Related guides

Zakat on Cash and Savings

Include all cash on hand, savings, and digital balances in Zakat.

Zakat on Bank Accounts

Include all accessible balances in checking and savings accounts.

Zakat on Business Inventory

Value trade goods at selling price and include business cash.

How to Calculate Zakat

A simple step-by-step guide for calculating your Zakat.

More resources: FAQ and About Zakat.