How to Calculate Zakat: Nisab, Rate and a Worked Example
Zakat is one of the five pillars of Islam: an annual obligation on Muslims whose wealth reaches a minimum threshold. This guide gives the general method. For a ruling on your own situation, please ask a qualified scholar.
The three conditions
- Your net wealth reaches the Nisab.
- You have held it for one lunar year (the hawl).
- It is wealth you own outright and could use.
What is the Nisab?
The Nisab is commonly set at 87.48 grams of gold or 612.36 grams of silver. Because silver is far cheaper, the silver Nisab is lower and covers more people. Scholars differ on which to use, so follow the guidance you trust.
What counts as zakatable wealth?
- Cash and bank balances
- Gold and silver (including jewellery, in many opinions)
- Investments, shares and funds held for profit
- Business stock and money owed to you that you expect to receive
Your home, car and everyday belongings are generally not included.
The calculation
Zakat = 2.5% x (total zakatable assets minus debts due now), if the result is at or above the Nisab.
Worked example
Suppose silver costs 3 per gram. The silver Nisab is 612.36 x 3 = 1,837.08. You hold 20,000 in cash and 50 grams of gold worth 4,500, with no debts. Your net wealth is 24,500, which is above the Nisab. Zakat due is 24,500 x 2.5% = 612.50.
Try your own numbers in our Zakat Calculator, or use the Percentage Calculator for quick checks.