Add up your zakatable wealth – cash, bank balances, gold, silver, business stock at sale value, investments and money you expect to be repaid – then subtract debts that are due now. If the result is at or above the nisab (the value of 87.48 g of gold or 612.36 g of silver) and you’ve held at least that much for a full lunar year, zakat is 2.5% of the total. Scholars differ on some details, so follow a scholar you trust where they do.
Zakat is one of the five pillars of Islam, and the rate is famous: 2.5%. Working out 2.5% of what is where people get stuck. This guide walks through the calculation the way most people do it in practice, with a worked example at the end.
A note before we start: scholars and schools of thought differ on some points, such as jewellery for personal use, which nisab to use and how to treat long-term debts. Where they differ, we say so. If you’re unsure, ask a scholar you trust, and treat this guide as help with the arithmetic.
When zakat is due
- You are a Muslim adult of sound mind.
- Your zakatable wealth is at or above the nisab.
- You have held wealth at or above the nisab for one full lunar (Hijri) year, called the hawl.
Most people choose a fixed date, such as 1 Ramadan or the anniversary of when they first reached the nisab, and calculate on that date each year.
The nisab: gold or silver?
| Standard | Weight | In tola |
|---|---|---|
| Gold | 87.48 g | 7.5 tola |
| Silver | 612.36 g | 52.5 tola |
Because silver is far cheaper than gold, the silver nisab is a much lower amount of money. Many scholars recommend the silver nisab for cash and mixed assets, since more people then pay and the poor benefit. Others use the gold nisab. If you own only gold, the gold nisab applies to it. Check the price per gram on your zakat date with a local jeweller or market rate.
What counts as zakatable wealth
| Include | Usually exclude |
|---|---|
| Cash at home and in bank accounts | Your home and household furniture |
| Gold and silver (at today’s value) | Your personal car |
| Business stock, at the price you’d sell it | Tools, machinery and shop fittings used in the business |
| Shares and funds (scholars differ on the method) | Clothes and personal items |
| Money owed to you that you expect to receive | Debts you don’t expect to get back |
| Property bought to resell | Property you live in or rent out (the rent you save counts as cash) |
Gold jewellery you wear
This is one of the main differences of opinion. The Hanafi school, followed by most Muslims in Pakistan and India, generally includes jewellery worn by women. Many scholars of other schools exempt jewellery in normal personal use. Follow your scholar.
Deducting debts
Subtract debts that are due now or will be paid soon, such as unpaid bills, rent due and this month’s loan instalment. For long loans like a mortgage, many scholars allow only the instalments due in the coming months, not the whole balance; otherwise someone with a big mortgage would never pay zakat on large savings.
A worked example
Example prices only; use today’s rates. Say silver is 300 per gram, so the silver nisab is 612.36 × 300 = 183,708.
| Item | Amount |
|---|---|
| Cash and bank balance | 420,000 |
| Gold: 20 g at 24,000 per gram | 480,000 |
| Business stock at sale value | 250,000 |
| Money a friend will repay | 50,000 |
| Total assets | 1,200,000 |
| Less: bills and instalments due now | −100,000 |
| Net zakatable wealth | 1,100,000 |
| Zakat at 2.5% | 27,500 |
1,100,000 is well above the nisab, so zakat is 1,100,000 × 2.5% = 27,500. A shortcut: divide by 40.
If your bank already deducted zakat
In Pakistan, banks deduct zakat at source from some savings accounts at the start of Ramadan, unless the account holder has filed an exemption declaration. If that happened, many people count it towards what they owe for that money. Ask your scholar how to account for it, and keep the bank statement.
Practical tips
- Keep a simple yearly record: date, gold and silver price used, totals and amount paid.
- If you missed years, work them out year by year as best you can.
- Zakat goes to the eligible categories named in the Qur’an (9:60), such as the poor and those in debt.
- Use a zakat calculator to avoid arithmetic slips; ours runs on your device, so your figures aren’t sent anywhere.
Frequently asked questions
What is the nisab for zakat?
Should I use the gold or silver nisab?
Is zakat due on gold jewellery I wear?
Can I deduct my loans from zakat?
How much zakat do I pay on 1,000,000?
Calculate your zakat privately
Gold or silver nisab, assets and debts, 2.5% worked out. Nothing you enter leaves your device.
Open Zakat Calculator