How it is calculated
- Total the zakatable wealth held for a full lunar year: cash at home and in the bank, gold and silver, stocks held for trading, business inventory and receivables you expect to collect.
- Subtract debts that are due now (such as instalments currently payable), per the majority view.
- Compare the net with nisab: the value of 85 g of pure gold or 595 g of silver.
- If it reaches nisab, zakat is 2.5% of the net. If you use the Gregorian year, use 2.577% since it is about 11 days longer.
No zakat is due on fixed assets for personal use: your home, car, furniture and work tools.
Worked example
Someone with 60,000 in cash, 20 g of 21k gold, trading shares worth 15,000 and a 5,000 instalment due. With pure gold at 1,000 per gram: pure gold = 17.5 g worth 17,500; total = 92,500 − 5,000 = 87,500; nisab is 85,000. Zakat = 87,500 × 2.5% = 2,187.50.
Frequently asked questions
Gold or silver nisab?
The silver nisab is lower, so more people pay and it is more cautious for the poor; many contemporary scholars prefer gold as closer to today’s values. Follow the scholar you trust.
Is zakat due on my monthly salary?
It is due on what you save, if it reaches nisab with your other wealth and a lunar year passes. The easiest way is to pick one annual date and pay on everything you hold.
Do I deduct my debts?
The majority deduct debts currently due; for long-term loans, it is commonly held to deduct only the current year’s instalments.
Is zakat due on worn jewellery?
Scholars differ: the majority exempt jewellery normally worn; the Hanafis require zakat. Use the gold zakat calculator to choose the view.
When do I pay?
When a lunar year completes on wealth at or above nisab. Most scholars allow paying early.