How Zakat Is Calculated
Zakat is one of the Five Pillars of Islam, obligatory on Muslims whose wealth exceeds the Nisab threshold for a full lunar year. The Zakat rate is a fixed 2.5% of total zakatable wealth:
Zakat Due = Total Zakatable Assets × 2.5% (only if assets exceed the Nisab threshold)
What Counts as Zakatable Wealth
- Cash on hand and in bank accounts
- Gold and silver (jewellery and bullion, per most scholarly opinions)
- Business inventory and trade goods
- Investments and shares held for trading purposes
Short-term debts you owe are typically deducted from your total assets before calculating Zakat.
Understanding Nisab
Nisab is the minimum wealth threshold below which Zakat is not obligatory, traditionally defined as the value of 87.48 grams of gold or 612.36 grams of silver — since these values fluctuate with market prices, you should calculate the current Nisab value using today's gold or silver rate before using this calculator.
Why This Calculator Needs Your Input
Since gold and silver prices change daily, and different scholars/schools of thought have varying interpretations on certain zakatable asset categories, this calculator asks you to input the current Nisab value rather than hardcoding a value that would quickly become outdated or potentially not match your school of thought's calculation method.