Zakat Calculator

Understanding Zakat Calculation

Zakat is an obligatory charity in Islam, payable at a rate of 2.5% on a Muslim's total qualifying wealth, provided that the wealth exceeds a minimum threshold called the Nisab and has been held for one full lunar year (Hawl).

What is the Nisab?

The Nisab is the minimum amount of wealth one must own before Zakat becomes payable. It is determined by the current market value of either gold or silver:

• Gold Nisab: The value of 85 grams of 24-karat gold.
• Silver Nisab: The value of 595 grams of pure silver.

Many Islamic scholars recommend using the Silver Nisab because it is typically much lower than the Gold Nisab, meaning more people will pay Zakat, thereby benefiting the poor and needy to a greater extent.

What Wealth is Included?

Your Zakat-eligible wealth (Zakatable wealth) includes:

• Cash on hand and in bank accounts.
• The market value of gold and silver you own (if it is kept for wealth accumulation; rulings vary on personal jewelry).
• Investments, stocks, and shares.
• Business inventory and trade goods.

Deducting Liabilities

You should deduct your immediate short-term debts and liabilities (e.g., credit card bills due, upcoming month's rent) from your total wealth before calculating Zakat. Long-term debts (like a 20-year mortgage) are generally not fully deducted; consult an Islamic scholar for specific guidance on large debts.