How to Calculate Your Zakat Accurately
Zakat isn't just a charitable donation. It's a mandatory pillar of Islam that purifies your wealth. But figuring out exactly how much you owe can feel confusing. Here's exactly how it works.
The Short Answer
Zakat is exactly 2.5% of your total net zakatable wealth. You only pay it if your wealth has stayed above the Nisab threshold for one full Islamic lunar year. To find your exact amount instantly, simply use our free Zakat Calculator above.
What exactly is Zakat?
Zakat is the third pillar of Islam. It forms a mandatory alms-giving tax on wealth. Unlike regular charity (Sadaqah), which you give voluntarily, Zakat is a strict religious obligation.
You calculate it as 2.5% of your qualifying surplus wealth. When you pay Zakat, you purify your remaining wealth and support those struggling in your community. It bridges the gap between the rich and the poor.
وَأَقِيمُوا الصَّلَاةَ وَآتُوا الزَّكَاةَ
"And establish prayer and give Zakat" (Quran 2:43)
Who receives this money?
The Quran (9:60) clearly specifies eight categories of people who can receive your Zakat. You cannot just give this money to anyone.
Understanding the Nisab Threshold
Think of Nisab as the minimum exemption limit. If your total qualifying wealth drops below this line, you don't owe any Zakat for that year. If it stays above the line for a full lunar year, you must pay.
The Prophet Muhammad (PBUH) set the Nisab based on two physical metals: gold and silver. Because their prices change constantly, the Nisab value fluctuates every single day.
| Feature | Gold Nisab | Silver Nisab |
|---|---|---|
| Weight Standard | 87.48 grams of gold | 612.36 grams of silver |
| Value Today | ~$5,600+ (high threshold) | ~$500+ (low threshold) |
| Who uses it? | People whose only asset is gold | Most scholars recommend this for everyone |
Who is obligated to pay?
Be a Muslim
Zakat is a religious duty strictly for Muslims. Non-Muslims do not pay Zakat.
Be an Adult
You must have reached the age of puberty (Baligh). Children do not pay wealth Zakat.
Own the Minimum (Nisab)
Your personal wealth must equal or exceed the Nisab threshold value.
Wait One Lunar Year (Hawl)
You must have held that wealth continuously for one Islamic year (approx 354 days).
A Simple Step-by-Step Calculation Formula
- Find today's Nisab value. Check our live widget at the top of the page for the exact number.
- Add up all your Zakatable assets. This includes cash in the bank, gold, silver, business inventory, and investments like stocks or crypto.
- Subtract your immediate debts. Deduct unpaid rent, medical bills, or personal loans due right now. Do not deduct a 30-year mortgage entirely.
- Check the final number. Is your net wealth higher than the Nisab? If yes, proceed to step 5. If no, you owe zero Zakat.
- Multiply by 2.5%. Multiply your final net wealth by 2.5% (or 0.025). That gives you your exact payment amount.
What about my personal gold jewelry?
The Hanafi Opinion (Zakatable)
You must pay Zakat on all gold and silver jewelry, regardless of whether you wear it every day or keep it locked in a safe.
The Majority Opinion (Exempt)
You do not pay Zakat on jewelry you regularly wear for personal use. You only pay on jewelry bought specifically as an investment.
Frequently Asked Questions
Can I give Zakat to my parents or children?
No, you cannot. You are already financially responsible for your direct dependents (parents, children, spouse). However, you can give Zakat to your brothers, sisters, uncles, or aunts if they are poor.
Do I account for taxes before calculating?
You can only deduct taxes if they are strictly overdue and must be paid immediately. You cannot deduct estimated future taxes for the year ahead.
What if my wealth dipped below Nisab during the year?
Most scholars agree that if your wealth dips slightly but recovers by your annual Zakat date, you still pay 2.5% on the final balance. If your wealth hit absolute zero, your one-year clock (Hawl) restarts from scratch.