The difference between trading and investment stocks
"Trading" stocks (repeated buying and selling for profit from price differences) are treated as "trade merchandise" — zakat applies to the full current market value at 2.5%. "Investment" stocks (long-term holding) owe zakat only on the company's "zakatable base" (current assets like cash and inventory, not fixed assets like factories and real estate).
Many companies listed on Tadawul officially disclose the "zakatable base per share" in their financial reports — if this figure is available, it's the most accurate. When it's unavailable, it's conventionally estimated at 25%-30% of market value (since fixed assets typically make up most of large companies' assets).
FAQ
How do I know if my intent is "trading" or "investment"?
If your main goal is to sell quickly when the price rises (speculation), that's trading. If your goal is to hold for years to benefit from dividends and company growth, that's investment.
Does this calculator check the nisab and hawl (lunar year)?
No, this calculator only computes the zakat due on the stocks themselves. To combine this amount with the rest of your zakatable wealth and verify you've met the nisab and hawl, use the general zakat calculator.
Source
Contemporary jurisprudential opinion from the International Islamic Fiqh Academy and major fatwa bodies regarding zakat on stocks based on holding intent.
Related calculators
Last updated: July 2026
This calculator is a general estimate and not a religious ruling for your individual case — consult a qualified religious advisor for your exact situation. Read the full disclaimer.