A Practical Guide to Calculating Your Zakat

Zakat is one of the five pillars of Islam — an obligatory act of charity for Muslims whose wealth exceeds a minimum threshold known as Nisab. This guide walks through the basics of calculating it correctly.

What Counts as Zakatable Wealth

Generally, Zakat applies to wealth that has been held for a full lunar year and is capable of growth, including:

• Cash and bank savings
• Gold and silver (jewelry rulings vary by school of thought)
• Business inventory and investments
• Shares and stocks held for trading

The Nisab Threshold

Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It is traditionally pegged to the value of 87.48 grams of gold or 612.36 grams of silver.

The Calculation

Once your net zakatable wealth (assets minus short-term debts) exceeds the Nisab threshold, Zakat is due at a rate of 2.5% of that net wealth.

A Worked Example

If your net zakatable wealth is $12,000 and the Nisab threshold is roughly $6,500, your Zakat due would be $12,000 × 2.5% = $300.

Use our Zakat Calculator to work out your own obligation quickly. For specific fiqh questions, always consult a qualified scholar.