Zakat is one of the five pillars of Islam: an obligation to give a portion of one’s wealth to those in need. Many people pay it in Ramadan, but the calculation itself can be confusing. This guide explains how to calculate zakat step by step, with a worked example, using our free Zakat Calculator. For specific rulings, consult a scholar you trust.
The basic rule
Zakat is 2.5% of your net zakatable wealth, if that wealth is at or above the nisab and has been held for one lunar year.
Step 1: Choose the nisab
The nisab is the minimum wealth on which zakat is due:
- Gold: 87.48 grams (7.5 tola)
- Silver: 612.36 grams (52.5 tola)
Value it at today’s price. Because silver is much cheaper, the silver nisab is much lower, so more people pay zakat under it. Many scholars recommend the silver nisab for cash and mixed assets; follow the opinion you trust.
Step 2: Add zakatable assets
- Cash at home and in bank accounts
- Gold and silver (including jewellery under the Hanafi view)
- Business stock at selling value
- Shares and investments held for trade
- Money owed to you that you expect to receive
Step 3: Subtract liabilities due now
Bills, rent and debts that are due immediately can usually be deducted. Long-term loans are treated differently by scholars; commonly only the instalments currently due are deducted.
Step 4: Compare with nisab and calculate
If net wealth ≥ nisab, zakat = net wealth × 2.5%.
Worked example
| Item | Amount |
|---|---|
| Cash and bank savings | Rs 450,000 |
| Gold: 2 tola at Rs 380,000 per tola (example) | Rs 760,000 |
| Business stock | Rs 200,000 |
| Money owed to you | Rs 50,000 |
| Less: bills and debts due now | −Rs 60,000 |
| Net zakatable wealth | Rs 1,400,000 |
| Zakat (2.5%) | Rs 35,000 |
Gold prices change daily; use the current rate. The Gold Calculator values your jewellery by weight and purity.
What is not zakatable
Your home, personal car, furniture, clothes and tools of your trade are not zakatable.
When to pay
Zakat becomes due once a lunar year has passed since your wealth reached nisab. Many people pick a fixed date, such as 1 Ramadan, and calculate each year on that date. See today’s Islamic date with the Islamic Date Today (Hijri Converter) tool, and read zakat on gold jewellery for the common questions.
Frequently asked questions
What is the zakat rate?
2.5% of net zakatable wealth.
What is the nisab for zakat?
87.48 g of gold or 612.36 g of silver, valued at today’s price.
Is zakat due on my house?
Not on the home you live in.