Every year, the same question comes up in a lot of homes: how much zakat do we actually owe? The principle is simple — 2.5% of your savings — but the details trip people up. Is jewellery included? What about the money a friend still owes you? Which nisab should you use?
This guide walks through the whole calculation, one step at a time, with a real example at the end. If you'd rather skip the maths, the free Zakat Calculator does it as you type.
A note before we start: this is a general guide based on widely accepted positions. Where scholars differ, we say so. For unusual situations — pensions, property portfolios, business partnerships — speak to a scholar you trust.
What is zakat?
Zakat is one of the five pillars of Islam: an obligatory annual payment of 2.5% (one-fortieth) of qualifying wealth, given to people in need. It becomes due when two conditions are met:
- Your net zakatable wealth is at or above the nisab.
- You have held that wealth for one full lunar year (called hawl).
Step 1: Understand the nisab
The nisab is the minimum wealth threshold. It's measured in gold or silver:
| Nisab basis | Weight | In tola |
|---|---|---|
| Gold | 87.48 grams | 7.5 tola |
| Silver | 612.36 grams | 52.5 tola |
Because silver is far cheaper than gold, the silver nisab is much lower. Many scholars recommend using it for cash savings — it's the more cautious option, and it means more zakat reaches people who need it. Others use the gold nisab. Both are valid positions; pick one and apply it consistently.
To get the nisab in your currency, multiply the grams by today's price per gram:
Nisab = 612.36 × silver price per gram
Step 2: Add up your zakatable assets
Go through each category and write down today's value.
Include:
- Cash — at home, in your wallet and in every bank account.
- Gold and silver — coins, bars and jewellery, at current market value. (The Hanafi school includes all jewellery. The Shafi'i, Maliki and Hanbali schools generally exempt jewellery that is worn regularly for personal use.)
- Investments — shares, mutual funds, ETFs and crypto, at market value.
- Business stock — goods you hold to sell, at their current value.
- Money owed to you — loans you've given and genuinely expect to be repaid.
Don't include:
- The home you live in
- Your personal car
- Furniture, clothes and household items
- Tools and equipment you use for work
Step 3: Subtract what you owe right now
Deduct debts and bills that are due now — rent owed, a credit card bill, an instalment that's currently payable. Most scholars don't allow you to deduct the entire remaining balance of a long-term loan like a mortgage; typically only the portion that's currently due is deducted.
Step 4: Compare with the nisab
Subtract your debts from your total assets. That's your net zakatable wealth.
- If it's below the nisab, no zakat is due this year.
- If it's at or above the nisab, move to the last step.
Step 5: Multiply by 2.5%
Zakat = net zakatable wealth × 0.025
That's it. Dividing by 40 gives the same answer.
A worked example
Let's take a household in Pakistan. These figures are illustrative — always use today's prices.
Suppose silver costs Rs. 300 per gram. The silver nisab is:
612.36 × 300 = Rs. 183,708
Now their assets:
| Asset | Value (Rs.) |
|---|---|
| Cash and bank balances | 350,000 |
| Gold jewellery | 600,000 |
| Shares and mutual funds | 150,000 |
| Total assets | 1,100,000 |
| Minus: bills and debts due now | − 100,000 |
| Net zakatable wealth | 1,000,000 |
Rs. 1,000,000 is well above the nisab of Rs. 183,708, so zakat is due:
1,000,000 × 2.5% = Rs. 25,000
Common questions
Do I pay zakat on my salary?
Not on the salary itself as it arrives. What matters is what you've saved by your zakat date. If your savings are above the nisab on that date, they're included.
Do I need to track the exact date for every rupee?
No. Most people choose a fixed annual zakat date — often a day in Ramadan — and calculate on everything they own that day, as long as their wealth has been above the nisab for the year.
What about my provident fund or pension?
Opinions differ, depending on whether you can access the money. This is a good one to ask a scholar about.
Who can receive zakat?
The Qur'an (9:60) names eight categories, including the poor, the needy, people in debt and travellers in need. Zakat can't be given to your parents, grandparents, children or spouse, because you're already responsible for supporting them.
Calculate yours in two minutes
Open the Zakat Calculator, choose the silver or gold nisab, enter today's price per gram and fill in your assets. It shows your total, the nisab threshold and exactly how much zakat to pay — and nothing you type leaves your device.