Quick answer: zakat is 2.5% of your zakatable wealth – cash, savings, gold, silver, business stock, investments and money owed to you, minus debts due now – if that total has been at or above the nisab for a full lunar year. The nisab is the value of 87.48 g of gold or 612.36 g of silver (7.5 and 52.5 tola). On 1,000,000 of zakatable wealth, zakat is 25,000.
The nisab: gold or silver?
The nisab is the minimum wealth on which zakat is due. Scholars traditionally set it at 20 mithqal of gold (about 87.48 g) or 200 dirhams of silver (about 612.36 g). Today silver is far cheaper than gold, so the silver nisab is much lower and makes zakat due for more people. Many scholars and zakat bodies in South Asia recommend the silver nisab because it benefits more people in need; others use gold. If you are unsure, follow your local scholar or zakat authority.
Example: if silver is 300 per gram, the silver nisab is 612.36 × 300 = 183,708. If gold is 22,000 per gram, the gold nisab is 87.48 × 22,000 = 1,924,560. Enter today’s prices – they change every day.
What counts as zakatable wealth
| Include | Usually not included |
|---|---|
| Cash in hand and in bank accounts | Your home, furniture and car for personal use |
| Gold and silver (jewellery included in the Hanafi view) | Tools and equipment used in your trade |
| Business stock at sale value | Rental property itself (the saved rent is included) |
| Shares and funds (market value or zakatable portion) | Clothes and personal items |
| Money lent to others that you expect back | Debts you are unlikely to recover |
Gold or silver jewellery worn regularly is a point of difference: the Hanafi school includes it, while many Shafi’i, Maliki and Hanbali scholars exempt jewellery in normal personal use.
Hawl: the one-year condition
Zakat is due when your wealth has stayed at or above the nisab for one lunar (Hijri) year. Most people pick a fixed date – often in Ramadan – and calculate everything they own on that day each year.
Your zakat year runs from the date your wealth first reached the nisab – the Date & Age Calculator helps you count the days to it. For growth on savings over the year, see the compound interest calculator.
How to calculate zakat
- Pick the nisab and enter today’s price. Silver or gold, and the price per gram in your currency.
- List what you own. Cash, bank balances, gold and silver in grams, business stock, money owed to you and investments.
- Subtract what you owe. Debts and bills due now – not the full future balance of a long-term loan.
- Read your zakat. If your net wealth is at or above the nisab, zakat is 2.5% of it.
About bank deductions in Pakistan
Under Pakistan’s Zakat and Ushr Ordinance, banks deduct 2.5% from eligible savings accounts on the first of Ramadan unless the account holder has filed a declaration of exemption (CZ-50). If zakat was deducted at source, subtract that amount from what this calculator says you owe so you don’t pay twice.
This calculator follows the general rules described above and is not a fatwa. For inheritance, business partnerships, agricultural produce (ushr) or other special cases, please ask a qualified scholar.
Worked example
On her zakat date, a person has 150,000 in cash, 600,000 in the bank, 20 g of gold worth 400,000, business stock of 250,000 and 100,000 of bills due now. Silver is 250 per gram.
| Item | Amount |
|---|---|
| Cash + bank | 750,000 |
| Gold (20 g) | 400,000 |
| Business stock | 250,000 |
| Minus bills due now | −100,000 |
| Net zakatable wealth | 1,300,000 |
| Silver nisab (612.36 g × 250) | 153,090 |
| Zakat due (2.5%) | 32,500 |
Because 1,300,000 is above the nisab and has stayed above it for a lunar year, zakat of 32,500 is due.
Points people often miss
- Money lent to others that you expect back counts as your wealth.
- Savings in foreign currency count, converted at today’s rate.
- Shares held for trading count at market value; long-term holdings are treated differently by some scholars.
Frequently asked questions
What is the zakat rate?
2.5% (one fortieth) of zakatable wealth that has been at or above the nisab for one lunar year.
What is the nisab for zakat?
The value of 87.48 grams of gold or 612.36 grams of silver. Many scholars recommend the silver nisab today because it is lower and benefits more people.
How much is 7.5 tola of gold in grams?
About 87.48 grams. 52.5 tola of silver is about 612.36 grams.
Is zakat due on gold jewellery I wear?
In the Hanafi school, yes. Many other scholars exempt jewellery in regular personal use. Follow the view you normally follow or ask a scholar.
Do I pay zakat on my house or car?
Not on your own home or car for personal use. Property bought to resell counts as business stock.
Can I deduct my loan?
Deduct debts and instalments due now. For long-term loans, many scholars allow only the amount payable in the coming year.
Is zakat due on my provident fund or pension?
Scholars differ. Many say zakat is due once you have access to the money; ask your local scholar for your scheme.
Can I pay zakat in instalments during the year?
Many scholars allow paying in advance through the year and settling the balance on your zakat date.
Who can receive zakat?
The Quran names eight groups, including the poor and needy and people in debt. Many people give through trusted local charities or zakat committees.