Zakat is one of the Five Pillars of Islam. It is an obligatory form of charity requiring eligible Muslims to donate 2.5% of their qualifying wealth each year to those in need. Zakat purifies one's wealth, promotes social welfare, and helps reduce inequality within the community.

Zakat is calculated at a fixed rate of 2.5% (or 1/40) of your total zakatable assets minus any liabilities, provided your net wealth meets or exceeds the Nisab threshold. This rate applies to cash, gold, silver, investments, business goods, and money owed to you.

Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It is defined as the value of 85 grams of gold (approximately $5,500 USD) or 612 grams of silver (approximately $450 USD). Most scholars recommend using the silver Nisab to ensure more people fulfill this obligation.

When should Zakat be paid?

Zakat becomes due after one full lunar year (Hawl) has passed since your wealth first met or exceeded the Nisab threshold. Many Muslims choose to pay during Ramadan for increased blessings, but it can be paid at any time once the Hawl is complete and the Nisab is met.

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%)

Understanding Zakat: Your Guide to This Essential Pillar of Islam

Zakat is one of the Five Pillars of Islam and represents an obligatory form of almsgiving for every eligible Muslim. The word "Zakat" means "purification" in Arabic, reflecting its purpose of purifying one's wealth and soul. Every Muslim whose net wealth exceeds the Nisab threshold for a full lunar year (known as the Hawl) must pay 2.5% of their qualifying assets to those in need. Zakat applies to cash savings, gold, silver, stocks, business inventory, and receivables, minus any outstanding debts or liabilities.

Nisab and Hawl Explained

The Nisab is the minimum wealth threshold that triggers the Zakat obligation. It is set at the value of 85 grams of gold or 612 grams of silver. Most scholars recommend using the lower silver-based Nisab so that more people are encouraged to contribute. The Hawl refers to one complete lunar year during which your wealth remains at or above the Nisab level. If at any point during the year your net assets fall below Nisab, the Hawl resets.

Who Must Pay and How It Is Calculated

Zakat is obligatory for every adult, sane Muslim whose net zakatable wealth meets or exceeds the Nisab for one full Hawl. To calculate, add up all qualifying assets, subtract any immediate liabilities, and apply the 2.5% rate to the remaining amount. Personal items such as your primary home, clothing, and household furniture are generally exempt. Zakat funds are distributed to eligible recipients including the poor, the needy, those in debt, and travellers in need, as outlined in the Quran.

Formula

Zakat = Net Zakatable Assets × 2.5%

Where:

Net Zakatable Assets = Cash + Gold + Silver + Investments + Receivables − Debts
Nisab threshold (gold) = value of 85 grams of gold
Nisab threshold (silver) = value of 612 grams of silver
Zakat is due only if net assets ≥ Nisab for one full lunar year (Hawl)

Example Calculation

Scenario: A person has $25,000 in savings, $5,000 in gold, and $3,000 in debts

Step 1: Total assets = $25,000 + $5,000 = $30,000
Step 2: Net zakatable assets = $30,000 − $3,000 (debts) = $27,000
Step 3: Check Nisab: 85g gold at ~$75/g = $6,375. $27,000 > $6,375, so Zakat is due
Step 4: Zakat = $27,000 × 2.5% = $675
Result: $675 in Zakat is owed for the year

This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified Islamic scholar for Zakat-specific guidance.