Every year, millions of Muslim families sit down with a notebook and try to answer a practical question: how much zakat do I owe? The religious obligation is clear, but the arithmetic raises doubts. Which assets count? What is the nisab and should it be measured in gold or silver? What about debts, savings accounts, business stock and gold that is worn as jewellery? This guide explains the calculation step by step, using the figures that are commonly quoted by scholars and institutions, and shows a complete worked example so that you can check your own numbers.
An important note. Zakat is a religious duty, and this page is an educational guide to the arithmetic. It is not a fatwa. Scholars differ on several details, and your own circumstances may need a ruling. Please follow a qualified scholar or a trusted institution for your situation, and use this guide and the Zakat Calculator to organise the figures that you will discuss with them.
What is zakat and when does it become due?
Zakat is one of the five pillars of Islam. It is a fixed share of certain kinds of wealth that is paid to the people who are entitled to receive it. In general, zakat becomes due when three conditions are met: you own wealth that is zakatable, the net amount is at or above a minimum threshold called the nisab, and you have held that amount for a full lunar year, which is called the hawl. The rate on cash, gold, silver and business stock is 2.5 percent, which is one fortieth.
The lunar year has about 354 days, so the zakat date moves earlier in the calendar by about 11 days each year. Many people choose a fixed date such as the first of Ramadan and pay zakat on all the wealth that they hold on that day, which is a simple method that many scholars accept. If you do not know when your wealth first reached the nisab, ask your scholar which date to use.
The nisab: gold or silver?
The nisab is the minimum amount of wealth that makes a person liable for zakat. It is traditionally set by weight, at 87.48 grams of gold, which is 7.5 tola, or 612.36 grams of silver, which is 52.5 tola. The value in your currency is the weight multiplied by the current market price per gram, so the nisab changes with the market.
The two measures give very different amounts, because silver is much cheaper than gold. Many scholars and institutions recommend the silver nisab for cash savings, because it is lower, which means that more people become eligible to give and more poor people benefit. Others use the gold nisab, and some use whichever is lower. The Dekuz calculator lets you choose either basis. The right choice for you depends on the guidance of your scholar or your school of thought, so please ask. You can convert between tola and grams with the Tola to Gram Converter.
Which assets are included?
Commonly included assets, according to most scholars, are the following.
- Cash in your wallet, at home and in bank accounts, including savings and current accounts.
- Gold and silver, in bars, coins and, according to some schools, in jewellery (see below).
- Business inventory valued at its current selling or replacement price, and business cash and receivables.
- Money owed to you that you expect to receive, such as a loan you gave to a reliable person.
- Investments held for trade, such as shares that you intend to sell, usually at the market value on the zakat date.
Generally excluded items are your own home, the car that you use for personal needs, household furniture, clothes and tools that you use for work. Rules for agricultural produce, livestock, pensions, provident funds, property that is rented out, cryptocurrencies and shares held for dividends are more detailed, and scholars sometimes give different guidance. Please ask about those specific cases.
Gold jewellery: a point on which scholars differ
The treatment of jewellery that a woman wears regularly is a well known difference of opinion. In the Hanafi school, which is widely followed in Pakistan, India and Bangladesh, zakat is due on gold and silver jewellery that reaches the nisab, even if it is worn. In the other three main schools, the Shafi’i, Maliki and Hanbali, zakat is generally not due on jewellery that is permissible and worn for adornment, though zakat is due on gold and silver that is kept as savings or investment. Because the two positions give different results, follow the school or the scholar that you normally follow, and be consistent from one year to the next.
To work out the value of gold that you own, weigh each item in grams, multiply by the karat purity divided by 24 if you want to count the pure gold only, and multiply the grams by the price of the same karat for the day of the zakat calculation. Our Weight Converter and the tola guide on this site help with the unit conversions.
Debts: what can be subtracted?
Zakat is calculated on your net wealth, so debts that are due to be paid soon can usually be subtracted from the zakatable assets before you apply the rate. Typical deductions are credit card balances, personal loans that are due, unpaid bills, wages that you owe and the instalments that are due in the current year. Scholars differ about whether you can deduct the entire remaining balance of a long loan such as a mortgage or only the instalments that fall due in the next twelve months. Many contemporary scholars prefer the second approach, but ask which one applies to you. Debts that are not due for many years, or that are linked to assets that are not zakatable, are treated differently by different scholars.
Worked example
The numbers below are an illustration. They are not prices or advice, and the assumed rates are chosen only to make the arithmetic clear.
Suppose that on your zakat date you hold 500,000 in bank savings and cash, 20 grams of gold, business stock worth 300,000 and 100,000 that a customer owes you and is expected to pay. You owe 150,000 in debts that are due now. Assume that gold is 20,000 per gram and silver is 250 per gram.
| Item | Amount |
|---|---|
| Cash and savings | 500,000 |
| Gold: 20 g × 20,000 | 400,000 |
| Business stock | 300,000 |
| Money owed to you | 100,000 |
| Total zakatable assets | 1,300,000 |
| Debts due now | −150,000 |
| Net zakatable wealth | 1,150,000 |
Silver basis. The nisab is 612.36 g × 250 = 153,090. The net wealth of 1,150,000 is above it, so zakat is 1,150,000 × 2.5% = 28,750.
Gold basis. The nisab is 87.48 g × 20,000 = 1,749,600. The net wealth of 1,150,000 is below it, so no zakat would be due on this basis.
The same family can therefore owe 28,750 or nothing depending on which nisab is used. That is why the choice of nisab matters, and why you should ask a scholar rather than choosing the figure that you prefer. The Dekuz calculator performs exactly these steps when you enter your amounts, the gold and silver grams, the current rates and the basis.
Step-by-step checklist
- Choose a date for your annual calculation and note it in your calendar.
- List the cash and savings that you hold on that date.
- Weigh your gold and silver, find the current price per gram and calculate the value.
- Add business stock, receivables and other zakatable assets according to your scholar’s guidance.
- Subtract the debts that are due.
- Calculate the nisab from the current gold or silver price, using the basis that you follow.
- If the net wealth is at or above the nisab, multiply it by 0.025 to find the zakat.
- Keep a written record of the figures, the prices and the date, so you can review them next year.
Use the Percentage Calculator to check the 2.5 percent, and the Date Difference Calculator to count the days between your zakat dates.
Who can receive zakat and how to give it
The Quran names eight categories of recipients: the poor, the needy, those who work to collect and distribute zakat, those whose hearts are to be reconciled, the freeing of captives, those in debt, in the cause of God and the traveller in need. Zakat should be given with the intention of fulfilling the obligation, and it cannot be given to your own parents, grandparents, children or spouse, whom you are already obliged to support. When you give through a charity, choose an organisation that is transparent about how it distributes funds and that confirms that zakat is kept separate from general donations. Paying promptly once it is due is encouraged, and many people give part of it directly to relatives or neighbours who qualify.
Common mistakes
People often forget accounts that they rarely use, such as old savings, prize bonds or a deposit with a relative. They apply 2.5 percent to the gold weight instead of the gold value. They use the price of gold from last year. They mix up grams and tola, or use 28 grams for an ounce when the troy ounce is 31.1 grams. They subtract all future instalments of a loan without asking a scholar. They count personal items that are not zakatable, such as the house they live in. They forget that zakat is calculated every year, not once. And they leave the calculation to the last day of Ramadan, when it is easy to make arithmetic errors. A calculator removes the arithmetic risk, and a scholar removes the doubt about the ruling.
Frequently asked questions
What is the rate of zakat?
The rate on cash, gold, silver and business stock is 2.5 percent, which is one fortieth of net zakatable wealth that is at or above the nisab and held for a lunar year.
What is the nisab for zakat?
The commonly used nisab is 87.48 grams of gold, which is 7.5 tola, or 612.36 grams of silver, which is 52.5 tola. The value depends on current market prices.
Should I use the gold or the silver nisab?
Scholars differ. Many recommend the silver nisab for cash and savings because it is lower and benefits more recipients. Follow the guidance of your scholar.
Is zakat due on the house I live in?
No. Generally the home you live in, your personal car, household items and clothes are not zakatable.
Do I pay zakat on jewellery that I wear?
It depends on the school of thought. The Hanafi school generally says yes when it reaches the nisab, while the other three schools generally say no for permissible worn jewellery. Ask your scholar.
Can I subtract my debts?
Debts that are due can usually be subtracted from zakatable assets. For long loans, scholars differ on whether to deduct the whole balance or only the instalments due in the coming year.
Is the Dekuz zakat calculator a fatwa?
No. It performs the arithmetic using the amounts and rates that you enter. For rulings on specific cases, consult a qualified scholar.
Related tools
- Zakat Calculator – Estimate annual Zakat due on cash, gold, silver and other assets.
- Tola to Gram Converter – Convert gold and silver weight between tola, gram, kilogram and troy ounce.
- Percentage Calculator – Find a percentage of any number instantly.
- Weight Converter – Convert mass between metric and imperial units.
- Date Difference Calculator – Find calendar years, months, days and total days between two dates.
Keep reading
- How Many Grams in a Tola? Tola, Masha and Ratti Explained
- Marla to Square Feet and Kanal Conversion Guide for Pakistan
- How to Calculate Loan EMI: Formula, Worked Example and Tips
- Markup vs Margin: How to Price a Product and Protect Your Profit
- How to Convert CGPA to Percentage in Pakistan: The HEC Formula Explained
This guide is for general information and education. Figures in examples are illustrations, not current prices or advice. Please read our Disclaimer, and confirm important decisions with a qualified professional or an official source.