Question Summary:
How do I calculate Zakat on mortgage?

Question Detail:

Salaams,
I have a Question regarding Zakat on Mortgage. I know for long term Mortgage I have to calculate Amount owing in a year to calclulate zakat.My Monthly Mortgage payment is $ 2000out of which Interest is $500 When Calculating amount owing for the year do i have to deduct the INterest amount from Principal or I will Calculate total amount.if i count 2000 then amount owing for the year will be $24000If I count 1500 (Minus the Interest payment) amount will be $18000
 
Which amount i should use as my Liability for the year?
Also please pray that Allah save me from the Sin of RIBA ASAP.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
 
When calculating one’s assets to discharge Zakah, one cannot deduct interest amounts one owes. Only the principle amount may be deducted. Thus in the enquired situation, you can only deduct $1500 from your assets as a loan from your monthly mortgage payment which amounts to $18000 for the year.[1]
 
We ask Allah to provide you an alternative from your current predicament. Constantly engage in repentance and dispense charity as per your capacity. You may consider switching your conventional mortgage plan for an Islamic mortgage plan.
And Allah Ta’āla Knows Best
Abdullah ibn Mohammed Aijaz
Student Darul Iftaa
Baltimore, USA 
Checked and Approved by,
Mufti Ebrahim Desai.