What is the Nisab amount for Zakat?

The Nisab is the minimum wealth threshold that makes Zakat obligatory. It is defined as the value of 87.48 grams (7.5 tola) of gold or 612.36 grams (52.5 tola) of silver. As of 2026, the gold Nisab is approximately $7,500 USD and the silver Nisab is approximately $500 USD, though these fluctuate with market prices. Most scholars recommend using the lower silver Nisab to ensure more people fulfill this obligation, while others prefer the gold standard. Check current gold and silver spot prices for an accurate Nisab figure on your Zakat date.

Do I pay Zakat on my house?

No, your primary residence is not subject to Zakat. Personal-use assets such as the home you live in, your car, clothing, furniture, and household items are all exempt. However, if you own additional properties held as investments or for rental income, the situation differs. Net rental income you receive is zakatable as part of your cash/savings. Whether the market value of an investment property itself is zakatable depends on your intention: if you purchased it with the intention to resell for profit, its value is zakatable like business inventory. If you hold it purely for rental income, most scholars say only the income is zakatable, not the property value.

Is Zakat calculated on gross or net wealth?

Zakat is calculated on net wealth, not gross wealth. You first total all your zakatable assets — cash, gold, silver, investments, business inventory, and receivables — then subtract your immediate liabilities and debts that are currently due. The 2.5% Zakat rate is applied to the remaining net zakatable amount, provided it meets or exceeds the Nisab threshold. For long-term debts like mortgages, most scholars only allow deduction of the current year's payments rather than the entire outstanding balance.

Zakat becomes due after one full lunar year (Hawl) has passed since your wealth first met or exceeded the Nisab threshold. You assess your total zakatable wealth on your Zakat anniversary date each year. Many Muslims choose to pay during Ramadan for the increased spiritual rewards, and this also simplifies annual tracking. You are permitted to pay Zakat in advance before the Hawl is complete. If your wealth drops below Nisab at any point during the year, the Hawl resets and you begin counting again once your wealth returns above Nisab.

Is my 401(k) or retirement account subject to Zakat?

Scholars differ on this question. Some hold that retirement accounts like 401(k)s and IRAs are not zakatable until you can access the funds without penalty, since the money is effectively locked away and not in your full possession. Others argue you should pay Zakat on the current market value minus any penalties and taxes that would apply if withdrawn. A common middle-ground approach is to pay Zakat on employer-matched contributions you have vested, or to pay on the full value as a precaution (which is considered more rewarding). Consult a qualified Islamic scholar for guidance specific to your situation.

What is the difference between Zakat and Zakat al-Fitr?

Zakat (Zakat al-Mal) is the annual 2.5% obligation on accumulated wealth above the Nisab threshold, paid once per lunar year on your Zakat anniversary date. Zakat al-Fitr (also called Fitrana) is a separate, smaller charitable payment made at the end of Ramadan before the Eid al-Fitr prayer. Zakat al-Fitr is obligatory on every Muslim regardless of wealth level — it is paid per person in the household, including children. The amount is typically a fixed sum (approximately $10–15 per person in the US) based on the cost of a sa' (roughly 2.5–3 kg) of staple food. Use our Zakat al-Fitr Calculator to determine your Fitrana amount.

Zakat Calculator

Calculate your annual Zakat obligation based on your assets and liabilities.

Current Nisab Thresholds

Gold Nisab: 85g (~$5,500 USD*)

Silver Nisab: 612g (~$450 USD*)

*Approximate values. Please verify current gold/silver prices for accurate Nisab.

Your Assets

Cash & Bank Balances ($)

Gold (grams)

Silver (grams)

Stocks & Investments Value ($)

Business Goods Value ($)

Money Owed to You ($)

Your Liabilities

Liabilities & Debts Owed ($)

Results

Total Assets

Total Liabilities

Total Zakatable Assets

Nisab Threshold Met?

Zakat Due (2.5%)

What Is Zakat and Why It Matters

Zakat is one of the Five Pillars of Islam, alongside Shahada (declaration of faith), Salah (prayer), Sawm (fasting during Ramadan), and Hajj (pilgrimage to Mecca). The word "Zakat" comes from the Arabic root "z-k-a," meaning purification, growth, and blessing. It is a mandatory act of worship through wealth, requiring every eligible Muslim to give 2.5% of their qualifying net wealth annually to designated recipients.

Unlike voluntary charity (Sadaqah), Zakat is an obligation with specific rules about who must pay, how much is owed, and who can receive it. The Quran mentions Zakat over 30 times, frequently paired with prayer, underscoring its importance in Islamic life. Zakat serves multiple purposes: it purifies the giver's wealth and soul from greed, redistributes resources to reduce poverty and inequality, and strengthens bonds within the Muslim community (Ummah). The eight categories of eligible Zakat recipients are defined in Surah At-Tawbah (9:60): the poor, the needy, Zakat administrators, those whose hearts are to be reconciled, freeing captives, those in debt, in the cause of Allah, and travelers in need.

How to Calculate Zakat

Calculating Zakat involves a straightforward process, though it requires careful accounting of all your assets and liabilities. The core formula is:

Zakat = (Total Zakatable Assets − Liabilities) × 2.5%

Step 1: Determine your Zakat anniversary date. This is the date one full lunar year (Hawl) after your wealth first reached the Nisab threshold. Many Muslims use 1st Ramadan as their annual Zakat date for convenience. Note that a lunar year is approximately 354 days, about 11 days shorter than a solar year.

Step 2: Total all zakatable assets. Add up all qualifying wealth you possess on your Zakat date: cash in hand, bank balances (checking, savings, fixed deposits), gold and silver (by weight at current market value), stocks and investment portfolios at market value, business inventory at cost or market value, rental income received, and any debts owed to you that you expect to recover.

Step 3: Subtract immediate liabilities. Deduct debts and obligations that are currently due, such as outstanding bills, loan payments due within the year, and other immediate financial obligations. Long-term debts like a 30-year mortgage are generally not fully deductible — only the current year's payments are subtracted.

Step 4: Check against the Nisab. If your net zakatable wealth equals or exceeds the Nisab threshold, Zakat is obligatory. If it falls below Nisab, no Zakat is due that year.

Step 5: Apply the 2.5% rate. Multiply your net zakatable wealth by 0.025 (2.5%) to determine the amount you owe. This rate (1/40th of wealth) has remained unchanged since the time of the Prophet Muhammad (peace be upon him).

Nisab Threshold Explained

The Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It is based on two precious metal standards established by the Prophet Muhammad (peace be upon him):

Standard	Weight	Approx. USD	Approx. GBP	Approx. INR
Gold Nisab	87.48g (7.5 tola)	~$7,500*	~£5,900*	~₹6,30,000*
Silver Nisab	612.36g (52.5 tola)	~$500*	~£400*	~₹42,000*

*Approximate values as of 2026. Verify with current gold/silver spot prices for accurate Nisab.

Which Nisab should you use? There is scholarly debate on this point. The gold and silver Nisab thresholds produce very different dollar amounts because the gold-to-silver price ratio has shifted dramatically from historical norms. The majority of contemporary scholars recommend using the silver Nisab (the lower threshold), because it results in more people being eligible to pay Zakat, which better serves the welfare of the poor. However, some scholars prefer the gold Nisab, arguing it better reflects the original purchasing power intended. If you are uncertain, consult a qualified Islamic scholar or your local mosque for guidance.

Key Zakat Terms

Term	Definition
Zakat (Zakat al-Mal)	The obligatory annual payment of 2.5% on qualifying wealth, one of the Five Pillars of Islam.
Nisab	The minimum wealth threshold that triggers the Zakat obligation, based on the value of gold (87.48g) or silver (612.36g).
Hawl	One complete lunar year (~354 days). Wealth must remain at or above Nisab for one full Hawl before Zakat becomes due.
Zakatable Assets	Wealth subject to Zakat: cash, savings, gold, silver, stocks, business inventory, receivables, and rental income.
Gold Standard	Nisab measured as the value of 87.48 grams (7.5 tola / ~3 troy ounces) of pure gold.
Silver Standard	Nisab measured as the value of 612.36 grams (52.5 tola / ~21 troy ounces) of pure silver.

What Assets Are Zakatable?

Not all wealth is subject to Zakat. Islamic jurisprudence distinguishes between assets held for personal use and assets that represent stored or growing wealth. Understanding which assets count toward your Zakat calculation is essential for accurate payment.

Zakatable (Include)	NOT Zakatable (Exclude)
Cash in hand and bank accounts	Primary residence (the home you live in)
Savings accounts and fixed deposits	Personal car used for transportation
Gold and silver (jewelry, coins, bars)	Clothing, furniture, and household items
Stocks, mutual funds, and ETFs (market value)	Tools and equipment used for work
Business inventory and merchandise	Personal electronics (phone, computer)
Rental income received	Debts owed to you that are uncollectable
Debts owed to you (expected to be repaid)	Gems and precious stones (non-trade, scholarly debate)
Cryptocurrency holdings (by scholarly opinion)	Land held for personal use (not investment)

Note on gold jewelry: There is a difference of scholarly opinion on whether gold jewelry worn regularly by women is zakatable. The Hanafi school considers all gold and silver zakatable regardless of use. The Shafi'i, Maliki, and Hanbali schools generally exempt jewelry in regular personal use that does not exceed customary amounts. Check with your local scholar for the ruling you follow.

Practical Zakat Calculation Examples

Example 1: Salaried Professional with Savings and Gold Jewelry

Cash in bank: $35,000
Gold jewelry: 50 grams at $85/g = $4,250
Stocks (401k excluded, brokerage account): $12,000
Credit card debt due: $2,500
Total zakatable assets: $35,000 + $4,250 + $12,000 = $51,250
Net zakatable: $51,250 − $2,500 = $48,750
Nisab check: $48,750 > $500 (silver Nisab) — Zakat is due
Zakat owed: $48,750 × 2.5% = $1,218.75

Example 2: Small Business Owner

Business bank account: $20,000
Business inventory (merchandise for sale): $45,000
Accounts receivable (money customers owe): $8,000
Personal savings: $15,000
Business loan payment due this year: $10,000
Total zakatable assets: $20,000 + $45,000 + $8,000 + $15,000 = $88,000
Net zakatable: $88,000 − $10,000 = $78,000
Zakat owed: $78,000 × 2.5% = $1,950

Example 3: Investor with Stocks and Retirement Accounts

Checking account: $5,000
Savings account: $10,000
Brokerage account (stocks/ETFs): $80,000
401(k): $120,000 (excluded per scholar's guidance)
Gold coins: 30g at $85/g = $2,550
Student loan payment due: $3,000
Zakatable assets: $5,000 + $10,000 + $80,000 + $2,550 = $97,550
Net zakatable: $97,550 − $3,000 = $94,550
Zakat owed: $94,550 × 2.5% = $2,363.75

Zakat Rates on Different Asset Types

While 2.5% is the standard rate for most forms of wealth, Islamic law prescribes different Zakat rates for certain categories of assets, particularly agricultural produce and livestock.

Asset Type	Zakat Rate	Notes
Cash and savings	2.5%	All currencies, bank balances, fixed deposits
Gold and silver	2.5%	Jewelry, coins, bars — at current market value
Stocks and investments	2.5%	Market value on Zakat date; some scholars use zakatable portion of company assets
Business inventory	2.5%	Goods held for sale at cost or market value
Agricultural produce (irrigated)	5%	Crops watered by irrigation or mechanical means
Agricultural produce (rain-fed)	10%	Crops watered naturally by rain, rivers, or springs
Minerals and buried treasure	20%	Rikaz (buried treasure) and mined minerals
Livestock	Varies	Specific Nisab and rates for camels, cattle, sheep/goats based on herd size

This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Zakat rulings can vary between Islamic schools of thought. Always consult a qualified Islamic scholar for Zakat-specific guidance relevant to your situation.