In this article
Many people hesitate to calculate their zakat for fear of getting it wrong, so they postpone it or guess. In fact, the basic calculation is simple once you understand three concepts: nisab, hawl and the rate.
1. Nisab: the minimum threshold
Zakat is due only when wealth reaches a minimum called the nisab. It is commonly set at the value of 85 grams of gold; some scholars prefer the silver nisab (595 grams) because it benefits the poor more. Since the gold price changes, calculate the nisab at the price on the day you pay.
Example: if one gram of gold costs 1,000 currency units, the nisab = 85 × 1,000 = 85,000.
2. Hawl: one full year
Wealth must stay at or above the nisab for a full lunar year (about 354 days). To simplify, many people pick a fixed date each year, such as 1 Ramadan, and count what they own that day. Find the matching date with the Hijri Date Converter.
3. The rate: one-fortieth
Zakat on money and trade goods is 2.5% — simply divide the amount by 40.
What counts?
| Usually included | Usually excluded |
|---|---|
| Cash at home and in bank accounts | The home you live in |
| Saved gold and silver | Car and furniture for personal use |
| Trade inventory at market value | Work tools and machinery |
| Debts owed to you that are likely to be repaid | A business’s fixed assets |
Worn jewelry, shares and debts you owe are subject to well-known scholarly differences; ask a trusted scholar in your country for the view followed there.
A complete example
- Bank balance: 60,000
- Cash at home: 5,000
- Saved gold (bars) worth: 30,000
- Total: 95,000 — above the nisab (85,000) and held for a full year.
- Zakat = 95,000 × 2.5% = 2,375
For a quick calculation with the current gold price, use the Zakat Calculator.
Common questions
- My balance changes during the year? Many scholars rely on what you own on the day the year completes, as long as it didn’t drop below the nisab.
- My money is in a foreign currency? Convert it at that day’s rate with the Currency Converter.
- Do I pay in cash? Zakat on money is normally paid in money to eligible recipients.
Bottom line
Add up your cash, saved gold and trade goods on your zakat date, compare with the nisab, and multiply by 2.5%. This article is a general simplification — for special cases, consult a scholar or recognized fatwa authority in your country.
