How to use Zakat Calculator
Calculate your annual Zakat obligation on cash, gold, silver, business inventory, investments, and other zakatable assets. Zakat is the third Pillar of Islam — a mandatory annual almsgiving of 2.5% on net wealth held above the nisab threshold for one complete lunar year. This tool calculates the nisab in current gold and silver values, checks whether your total zakatable wealth exceeds it, and displays your exact Zakat amount in your chosen currency. For complex asset situations, consulting a qualified Islamic scholar is recommended.
- Enter your cash and bank savings held for at least one lunar year.
- Enter the current market value of gold and silver you own that is not in active daily personal use.
- Add the value of business inventory, trade goods, listed shares, and investment funds held for trade or capital gain.
- Enter receivable debts expected to be repaid and subtract liabilities (debts you currently owe).
- Review the nisab threshold shown in gold (85g) and silver (595g) terms and confirm your net wealth exceeds it.
- View your Zakat amount — 2.5% of total zakatable net wealth — alongside the eight eligible recipient categories.
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Nisab, hawl, and the 2.5% rate explained
Zakat becomes obligatory when two conditions are simultaneously met: the nisab threshold must be reached, and hawl — one full Islamic lunar year — must elapse while wealth remains continuously above nisab. The nisab is derived from the Prophetic tradition specifying 20 mithqal of gold (approximately 85 grams) or 200 dirhams of silver (approximately 595 grams) as the minimum. Because the gold and silver nisab values diverge greatly in modern commodity markets, scholars differ on which to apply; many contemporary scholars favour the lower silver nisab so that Zakat reaches more people in need. The rate on monetary wealth, gold, silver, and trade inventory is universally fixed at 2.5% (one-fortieth) of total zakatable net wealth.
| Asset category | Zakat rate | Nisab applies? | Key notes |
|---|---|---|---|
| Cash and bank savings | 2.5% | Yes | Include all liquid savings held for one lunar year |
| Gold (non-personal-use) | 2.5% | Yes (85 g) | Personal jewellery in regular use is ruled exempt by many scholars |
| Silver (non-personal-use) | 2.5% | Yes (595 g) | Check current silver spot price for nisab value |
| Business inventory (trade goods) | 2.5% | Yes | Value at current market price on the Zakat due date |
| Investment shares and funds | 2.5% | Yes | Apply to the zakatable underlying assets where possible |
| Receivable debts (likely to be repaid) | 2.5% | Yes | Include only debts realistically expected to be recovered |
| Agricultural produce — rain-fed | 10% | Separate nisab (~653 kg) | Paid at each harvest, not after a lunar year |
| Agricultural produce — irrigated | 5% | Separate nisab (~653 kg) | Reduced rate because of irrigation costs incurred |
The eight categories of Zakat recipients
The Quran (Surah At-Tawbah, 9:60) specifies exactly eight categories of people eligible to receive Zakat: the poor (fuqara), the destitute (masakin), Zakat administrators (amilin), those whose hearts are to be reconciled (muallafat al-qulub), those in bondage (fi al-riqab), the debt-burdened (gharimin), those striving in the way of Allah (fi sabilillah), and stranded travellers (ibn al-sabil). Distribution does not need to be equal across all eight categories; Zakat may be directed entirely to a single eligible cause or person, or spread across multiple categories at the donor's discretion. Giving through a reputable Zakat-collecting organisation provides scholarly oversight and ensures funds reach verified beneficiaries.
Worked examples
Cash savings above nisab
Inputs: $25,000 held for one lunar year
Result: Zakat due = 2.5% = $625
Cash plus gold
Inputs: $10,000 cash + $5,000 gold, both above nisab
Result: Zakat = 2.5% × $15,000 = $375
Nisab thresholds — the gold and silver standards
| Nisab standard | Threshold | Notes |
|---|---|---|
| Gold | ≈ 87.48 g of gold | Higher threshold; commonly applied to gold holdings |
| Silver | ≈ 612.36 g of silver | Lower threshold; many scholars apply it to cash so more givers qualify |
| Cash & mixed wealth | Value of the silver nisab | Use current market value to test against the threshold |
Glossary
- Nisab
- The minimum amount of wealth a Muslim must possess before Zakat becomes obligatory; equivalent to approximately 85 g of gold or 595 g of silver at current market prices.
- Hawl
- The lunar year cycle of ownership; Zakat is due only on wealth that has remained above the nisab threshold for a full Islamic lunar year (approximately 354 days).
- Zakatable assets
- Assets subject to Zakat, including cash, gold, silver, trade inventory, and investments held for capital gain; excludes primary residence, personal-use vehicles, and household goods.
- Ushr
- The 10% (or 5% for irrigated land) Zakat on agricultural produce, paid at the time of harvest; governed by different rules from the standard 2.5% wealth Zakat.
- Sadaqah
- Voluntary charity given beyond the obligatory Zakat; not mandatory but strongly encouraged in Islam as an additional act of generosity and purification of wealth.
Related reading
Frequently Asked Questions
Why use Zakat Calculator?
- Calculates zakat due on cash, gold, silver, business inventory, and investment assets in one form
- Displays the current nisab threshold in both gold (85 g) and silver (595 g) terms at live prices
- Deducts outstanding liabilities before computing the 2.5% obligation on net zakatable wealth
- Lists all eight Quranic recipient categories alongside your calculated zakat amount for distribution guidance
Common use cases
- Work out the 2.5% zakat owed on yearly savings after deducting current debts and liabilities
- Determine whether inherited gold jewellery crosses the nisab threshold and triggers a zakat obligation
- Calculate the zakatable portion of a listed-share portfolio by entering the underlying asset values
- Compare gold and silver nisab thresholds to decide which scholarly standard to apply to your calculation
- Find your exact zakat amount in local currency to transfer to a verified charitable organisation
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