How this calculator works
Zakat is one of the five pillars of Islam and is an annual obligation for Muslims whose wealth exceeds a threshold called the nisab. It is not a tax on income but on wealth held for a lunar year. This calculator adds the zakatable assets: cash in hand and in the bank, the market value of shares and funds, money owed to you that you expect back, business inventory at its selling value, and the value of gold and silver. It then subtracts debts that are due now, such as an unpaid bill or the current portion of a loan, because those reduce what you actually own. The nisab is set in grams of gold or silver: 87.48 grams of gold, or 612.36 grams of silver, which is 7.5 and 52.5 tola respectively. Most contemporary scholars allow a choice, and many prefer silver because it is lower and so brings more people into the obligation. The result is the same 2.5% of net wealth either way once you are above the threshold, but the choice changes who qualifies. Zakat is due on wealth that has been above the nisab for one full lunar year, which is about 354 days, not on a windfall held for a few weeks. The long-term assets you use yourself, such as your home and car, are not counted, and nor is the value of a pension you cannot yet draw. This calculator is an educational tool, not a religious ruling; opinions differ on details such as pension treatment, business inventory valuation and which debts may be deducted, so consult a qualified scholar for your circumstances.
Formula
Gold value = grams of gold x price per gram. Silver value = grams of silver x price per gram. Net zakatable wealth = cash + investments + receivables + business inventory + gold + silver - debts due now. Gold nisab = 87.48 g x gold price per gram. Silver nisab = 612.36 g x silver price per gram. Compare net wealth with the chosen nisab and, if it is at or above it, pay zakat = net wealth x 2.5%.
Worked example
Cash and savings of $10,000, investments of $5,000 and debts due of $5,000 give net zakatable wealth of $10,000. With gold at $175 a gram the gold nisab is $15,309 and with silver at $2.15 a gram the silver nisab is $1,316.58. On the silver basis, which is the lower threshold, the wealth is above the nisab, so zakat is $10,000 x 2.5% = $250. On the gold basis the wealth is below the nisab and no zakat is due, which shows how much the choice of basis matters for a small holding.
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Frequently asked questions
Is zakat 2.5% of everything I own?
No. It is 2.5% of the zakatable wealth that has been above the nisab for a lunar year. Personal belongings such as your home, car, clothes and furniture are not zakatable, and neither is income you are about to spend on living costs.
Should I use the gold or the silver nisab?
Both are accepted. The silver nisab is lower in money terms, so it brings more people into the obligation. Many scholars recommend the silver basis for that reason, especially where silver is more affordable. Follow the guidance of a scholar you trust and be consistent.
Which debts can I subtract?
Debts that are due now or very soon, such as unpaid rent, utility bills, credit card balances and the current instalments of a loan. A long-term mortgage is usually treated differently, with only the immediate instalments deducted, and scholars differ on the details.
Do I pay zakat on a pension?
Opinions differ. Some treat a pension you cannot access as not yet owned and so not zakatable; others treat the portion you could withdraw as zakatable. This is a case to take to a scholar rather than to a calculator.
When is zakat due?
Once a lunar year has passed since your wealth first exceeded the nisab, you choose a date and pay annually on that date. Many people use Ramadan for convenience, but the obligation is tied to the lunar year, not to the month.