Financial Calculators
Zakat Calculator - Calculate Your Annual Zakat Obligation
Calculate your annual Zakat obligation. Enter your zakatable assets, liabilities, and current gold/silver prices. Automatically checks the nisab threshold and computes the 2.5% due.
Zakatable Assets
What is Zakat?
Zakat is one of the Five Pillars of Islam - an obligatory annual act of worship in which Muslims give a portion of their qualifying wealth to those in need. The standard rate is 2.5% of all zakatable assets held above the nisab threshold for a full lunar (Hijri) year. A Hijri year is approximately 354 days, meaning the Zakat due date advances roughly 11 days earlier each Gregorian year.
The Quran (9:60) identifies eight categories of eligible recipients: the poor (fuqara), the needy (masakin), Zakat administrators, those whose hearts are to be reconciled, those in bondage, debtors, those striving in God's cause (fi sabilillah), and travellers in need (ibn al-sabil).
Nisab threshold
The nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It is defined in two ways:
- Gold nisab: equivalent to the value of 85 grams of gold.
- Silver nisab: equivalent to the value of 595 grams of silver.
Because silver is much less expensive per gram than gold, the silver nisab translates to a significantly lower monetary threshold. Many contemporary scholars recommend using the silver nisab because it is more inclusive of middle-income payers and closer to the spirit of the original rulings. Both thresholds should be checked annually against current precious metal spot prices, as they fluctuate with market conditions.
Zakatable asset categories
| Asset type | Zakat rate | Notes |
|---|---|---|
| Cash savings & bank balances | 2.5% | Held for one lunar year above nisab |
| Gold & silver (investment) | 2.5% | Personal-use jewellery is exempt for most madhabs |
| Business inventory & trade goods | 2.5% | Valued at market price at Zakat due date |
| Outstanding loans receivable | 2.5% | Loans you expect to be repaid; disputed or bad debts may be excluded |
| Primary residence | Exempt | Personal-use property is not zakatable |
| Personal vehicle | Exempt | Used for personal transport, not business inventory |
| Household furniture & clothing | Exempt | Personal-use goods are not zakatable |
Rulings on more complex assets - retirement accounts, company shares, rental property equity, cryptocurrency - vary across madhabs. Consult a qualified scholar for guidance on these.