Quick Answer
Zakat is calculated as 2.5% of the total value of eligible wealth, including cash, gold, silver, savings, business assets, and investments, that has been held for one full lunar (Hijri) year and exceeds the Nisab threshold.
What Is Zakat Calculator?
Zakat is one of the Five Pillars of Islam, an obligatory annual charitable contribution required of every adult Muslim whose wealth exceeds a minimum threshold known as the Nisab. Unlike voluntary charity (Sadaqah), Zakat is a religious duty calculated on accumulated wealth, not on income.
The standard Zakat rate is 2.5% (or 1/40th) of total Zakat-eligible assets. Eligible wealth typically includes cash on hand and in bank accounts, gold and silver (jewelry and bullion), stocks and investment funds, business inventory and receivables, and any savings held for a full lunar year (known as Hawl).
This calculator follows AAOIFI Shariah Standard No. 35 (the Zakat standard published by the Accounting and Auditing Organization for Islamic Financial Institutions, the internationally recognized Islamic finance standard-setting body). The 2.5% rate itself comes from Hadith: 'For every 20 dinars (gold), half a dinar is due' (Sunan Abu Dawud 1563).
Zakat is not due on personal-use items like your primary residence, your car, household furniture, or clothing, these are excluded from the calculation regardless of their value. It's also not due on wealth below the Nisab threshold, which is benchmarked against the market value of gold or silver.
How to Use
- 1Add up all your Zakat-eligible cash: bank balances, cash at home, and money owed to you that you expect to receive.
- 2Add the current market value of gold and silver you own (jewelry, coins, or bullion).
- 3Add the value of any stocks, business inventory, or investment holdings.
- 4Subtract any short-term debts you owe.
- 5Multiply the net total by 2.5% to get your Zakat due, but only if the total exceeds the Nisab threshold.
Formula
Zakat = (Total Eligible Wealth − Short-term Debts) × 2.5%Only applies if net wealth ≥ Nisab threshold and has been held for one full lunar year
Example: Net eligible wealth of PKR 800,000
- Cash + gold value + investments = 850,000
- Short-term debts owed = 50,000
- Net Zakat-eligible wealth = 850,000 − 50,000 = 800,000
- Zakat = 800,000 × 2.5%
Tips & Things to Know
- Zakat is due once your wealth has remained above the Nisab continuously for one full lunar (Hijri) year, not the Gregorian calendar year.
- Many scholars recommend calculating Zakat using the lower of the gold or silver Nisab value, as this benefits more recipients, though practices vary by school of thought.
- Keep a fixed Zakat anniversary date each year (e.g. the first day of Ramadan) to make annual calculation simpler and more consistent.
- This calculator provides a mathematical estimate. For specific personal circumstances, business partnerships, mixed-use assets, or debts, consulting a qualified Islamic scholar is recommended.