How is Zakat calculated on a business (Zakat al-Tijarah)?

Add the current market value of your trade inventory, business cash, and receivables you expect to collect. Subtract short-term liabilities due now. If the result is at or above the nisab, Zakat is 2.5% of that net figure.

Do I value inventory at cost price or selling price?

Current market (selling) value, not what you originally paid — the standard view is that trade goods are valued at what they're worth today.

Zakat · Business / Trade Goods

Business & Trade Goods Zakat Calculator

Calculate Zakat al-Tijarah — Zakat on a business's trade inventory, cash, and receivables, net of what it owes. Trade goods are valued as money, so the same nisab logic as cash Zakat applies.

Currency

Inventory — current market value

Business cash on hand

Receivables you expect to collect

Short-term liabilities due now

Supplier invoices, wages owed, etc. — due now, not future obligations.

Nisab standard

Price per gram of the metal selected above

How it's calculated

Net trade wealth = inventory (market value) + business cash + receivables − payables due now.
Inventory is valued at current market (selling) price, not original cost.
The same silver/gold nisab choice as cash Zakat applies, since trade goods are treated as monetary wealth.
At or above nisab, Zakat is 2.5% of net trade wealth.
Fixed assets used to run the business — shelving, vehicles, equipment — are not included; only goods held for sale, cash, and receivables are.

This calculator gives a standard estimate for a straightforward trading business. Partnerships, inventory valuation disputes, and doubtful receivables can complicate the calculation — consult a scholar or Islamic finance advisor for your specific business structure.