How to calculate Zakat
Zakat is an obligatory annual charity in Islam, generally calculated as 2.5% of qualifying wealth that has been held for one lunar year and exceeds the nisab threshold. Qualifying wealth typically includes cash, gold and silver, business inventory, and certain investments, after subtracting eligible short-term liabilities.
This calculator helps you total your zakatable assets, compare them against the nisab, and work out the 2.5% due. Enter your holdings to get an estimate you can use as a starting point for your annual calculation.
What counts toward Zakat
- Cash on hand and in bank accounts.
- Gold and silver, valued at current market prices.
- Business stock and merchandise held for sale.
- Receivables you reasonably expect to recover.
- Many forms of savings and investments held for growth.
Understanding nisab
Nisab is the minimum amount of wealth a Muslim must hold before Zakat becomes due. It is commonly measured against the value of 87.48 grams of gold or 612.36 grams of silver. If your net zakatable wealth stays above nisab for a full lunar year, Zakat is due at 2.5%.
Frequently asked questions
What is the Zakat rate?
For most monetary wealth, the rate is 2.5% of the net zakatable amount held for one lunar year above nisab. Different rates apply to specific categories such as agricultural produce and livestock.
Should I use the gold or silver nisab?
Scholars differ. Using the silver nisab results in a lower threshold, meaning more people qualify to pay and more wealth becomes zakatable. Many follow local scholarly guidance on which standard to apply.
Do I pay Zakat on my home or car?
Personal-use items such as your primary home, car, and everyday belongings are generally not zakatable. Zakat applies to wealth held for growth or trade, not personal necessities.
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This content is provided for general educational purposes only and does not constitute financial, tax, or legal advice. Rates, limits, and regulations change over time. Verify figures with an official source or a qualified professional before making decisions.