Zakat Calculation Tool 2025

How to Use the Zakat Calculator

This Zakat calculator helps you accurately calculate your Zakat based on your total assets and liabilities. Follow these simple steps:

1. Select Currency: Choose your preferred currency such as USD, PKR, INR, or SAR
2. Enter Cash & Savings: Include cash on hand and money in savings accounts
3. Add Gold Value: Enter the current market value of gold you own
4. Add Silver Value: Enter the current market value of silver you own
5. Enter Investments: Include stocks, bonds, or other Shariah-compliant investments
6. Enter Property Value: Add property value held for investment or resale purposes
7. Add Business Assets: Include inventory and receivables related to business
8. Enter Liabilities: Subtract outstanding debts and liabilities
9. Calculate Zakat: Click the “Calculate Zakat” button
10. View Results: See total assets, net wealth, Nisab threshold, and Zakat amount

Understanding Zakat: The Third Pillar of Islam

What is Zakat?

• Meaning: Purification and growth
• Rate: 2.5% (or 1/40th) of qualifying wealth
• Frequency: Annually, after one lunar year (hawl)
• Purpose: Wealth purification, helping the poor, social welfare
• Obligation: Mandatory for every adult Muslim meeting nisab threshold

Who Must Pay Zakat?

Requirements:

• Muslim (adult and sane)
• Owns wealth above nisab threshold
• Wealth held for one complete lunar year (hawl)
• Wealth is in excess of basic needs
• Free from debt (or debt doesn't reduce wealth below nisab)

Who is Exempt?

• Those whose wealth is below nisab
• Those in debt exceeding their wealth
• Children (though guardians may pay on their behalf)
• Individuals with only basic necessities

Zakat Calculation Examples

Nisab: The Minimum Threshold

What is Nisab?

The minimum amount of wealth required before zakat becomes obligatory.

Gold Standard: 87.48 grams (3 oz or 7.5 tola) of gold

Silver Standard: 612.36 grams (21.5 oz or 52.5 tola) of silver

Current Practice: Use whichever is lower in value (typically silver), making more people eligible to pay zakat and increasing charity to the needy.

Which Nisab to Use?

Scholarly Opinion: Most contemporary scholars recommend using the silver nisab as it results in more charity reaching those in need. Using the lower threshold (usually silver) means more Muslims qualify to pay zakat, thereby helping more people.

Assets Subject to Zakat (Zakatable Assets)

Cash and Bank Accounts

• Zakatable: All cash, savings, and checking accounts
• Amount: Full value
• Rate: 2.5%

Includes:

• Cash at home
• Checking account balances
• Savings accounts
• Foreign currency holdings
• Digital wallet balances

Gold and Silver

• Zakatable: All gold and silver held as wealth
• Calculation: By weight or current market value
• Rate: 2.5%

Includes:

• Gold jewelry (if worn rarely or held as investment)
• Silver jewelry and ornaments
• Gold/silver coins and bars
• Investment-grade precious metals

Exempt: Personal jewelry regularly worn (according to some scholars)

Stocks, Bonds, and Investments

• Zakatable: Investment portfolios and securities
• Calculation: Current market value
• Rate: 2.5%

Includes:

• Publicly traded stocks
• Mutual funds
• Bonds and securities
• Investment accounts
• Cryptocurrency holdings
• Retirement accounts (401k, IRA - debated among scholars)

Two Approaches:

1. Full Value: Zakat on entire market value (more common)
2. Profit Only: Zakat only on gains/dividends (minority opinion)

Business Assets and Inventory

• Zakatable: Goods held for trade and business assets
• Calculation: Current market/wholesale value
• Rate: 2.5%

Includes:

• Merchandise inventory
• Raw materials for sale
• Trade goods
• Business cash reserves
• Accounts receivable (money owed to you)

Exempt: Fixed assets (buildings, equipment, vehicles used in business)

Real Estate and Property

Zakatable Investment Property:

• Rental property income (if above nisab after expenses)
• Properties held for resale
• Land purchased for investment

Exempt:

• Primary residence
• Personal use property
• Buildings/equipment used in business

Calculation:

• Rental income: Include annual net rental income
• Investment property: Include current market value if held for resale

Agricultural Produce

• Zakatable: Crops and agricultural products
• Rate: 5% (irrigated) or 10% (rain-fed)
• Threshold: 5 wasq (approximately 653 kg or 1,440 lbs)

Includes:

• Grains (wheat, rice, barley)
• Fruits (dates, grapes, raisins)
• Other agricultural products

Timing: Paid at harvest time (not after one year)

Livestock

• Zakatable: Grazing animals above nisab
• Rates: Vary by type and quantity
• Includes: Cattle, camels, sheep, goats

Nisab:

• Camels: 5+
• Cattle: 30+
• Sheep/Goats: 40+

Note: Detailed schedules exist for livestock zakat calculations

Deductible Liabilities

What Debts Can Be Deducted?

Immediate Debts (due within the year):

• Personal loans
• Credit card balances
• Business debts
• Rent/mortgage payments due
• Unpaid bills

Calculation: Deduct from total assets before calculating zakat

Example:

• Total Assets: $20,000
• Immediate Debts: $5,000
• Zakatable Wealth: $15,000
• Zakat Due: $15,000 × 2.5% = $375

What Cannot Be Deducted?

Long-term Debts (according to many scholars):

• Mortgage on primary residence
• Student loans (debated)
• Long-term business loans

Reasoning: These are spread over many years and don't immediately impact your ability to pay zakat

Note: Scholarly opinions vary on this matter

Frequently Asked Questions (FAQs)

What is a Zakat Calculator?

A zakat calculator is a free online tool that helps Muslims calculate their annual zakat obligation based on Islamic principles. Zakat, one of the Five Pillars of Islam, is a mandatory charitable contribution of 2.5% on qualifying wealth held for one lunar year. Whether you have cash savings, gold, silver, investments, business assets, or other zakatable wealth, our calculator helps you determine the exact amount you owe to fulfill this sacred religious duty and purify your wealth.

How much zakat should I pay?

Zakat is 2.5% (or 1/40th) of your qualifying wealth held for one lunar year. Calculate your total zakatable assets, subtract immediate debts, and multiply by 0.025. If your wealth is below nisab, no zakat is due.

When should I pay zakat?

Zakat becomes due after your wealth has been above nisab for one complete lunar year (hawl). Many Muslims choose to pay during Ramadan for increased reward, but you can set your own annual date and pay on that date each year.

What is the nisab threshold?

Nisab is the minimum wealth threshold. It equals the value of 87.48 grams of gold OR 612.36 grams of silver. Most scholars recommend using the silver nisab (currently ~$520-600) as it helps more people in need.

Do I pay zakat on my house?

No zakat on your primary residence. Zakat is due on rental properties held as investment (on rental income or property value if held for resale), but not on your home where you live.

Is zakat due on jewelry?

Opinions vary. Most scholars say zakat is due on gold/silver jewelry held as investment or rarely worn. Personal jewelry worn regularly may be exempt according to some scholars. When in doubt, paying zakat on it is the safer option.

Do I pay zakat on my 401k or retirement account?

Scholars differ on this. Some say yes (pay annually on the full balance), others say no (pay only when withdrawn), and some say pay for all past years when you withdraw. Consult an Islamic scholar for guidance.

Can I pay zakat monthly or must it be annual?

Zakat is calculated annually, but you can pay it in installments throughout the year for convenience. You can also pay in advance. What matters is ensuring you've paid at least 2.5% of your qualifying wealth annually.

Do I deduct my mortgage from zakatable wealth?

Scholars differ. Many say no, because mortgages are long-term debts spread over many years. Others allow deducting the portion due within the year. The primary residence itself is not zakatable regardless.

Is zakat the same as income tax?

No. Zakat is a religious obligation to purify wealth and help the poor. It's calculated on accumulated wealth held for a year, not just annual income. You must pay both zakat (to eligible recipients) and taxes (to government).

Who can receive my zakat?

Eight categories mentioned in the Quran: the poor, the needy, zakat administrators, those whose hearts are to be reconciled, those in bondage, those in debt, in the cause of Allah, and travelers in need. Generally given to poor and needy Muslims.

Can I give zakat to family?

Yes, to extended family in need (siblings, cousins, aunts, uncles). No to immediate dependents you're already obligated to support (parents, children, spouse). Supporting needy family is actually more rewarding.

What if I don't know my exact wealth?

Estimate to the best of your ability. It's better to overestimate and pay slightly more than to underestimate and underpay. Review bank statements, investment accounts, and other records to calculate accurately.

Is zakat on gross or net wealth?

Net wealth. Subtract immediate debts and liabilities from your total assets before calculating zakat. Only pay on what you truly own after obligations.

Can I pay zakat on someone else's behalf?

Yes, with their permission. Parents can pay for children, spouses can pay for each other, and you can gift money specifically for someone to pay their zakat. The intention matters.

What happens if I miss paying zakat?

Zakat remains an obligation that must be fulfilled. Calculate what you owed for missed years and pay it as soon as possible, even if it takes time. Seek forgiveness and don't delay future payments.