In this guide
Zakat is one of the five pillars of Islam — an annual obligation to give a portion of qualifying wealth to those entitled to receive it. It is often described as a purification of wealth: a recognition that wealth held over a year carries a duty to others. Unlike charity given freely, zakat is due, and not giving it when it is owed is a serious matter.
The logic is elegant: wealth that sits and grows for a full lunar year owes something to those who have none. The rate is low, the mechanism is clear, and the calculation — once you understand its three components — is straightforward.
The rate and what it applies to
The standard rate of zakat on monetary wealth is 2.5% — one fortieth of qualifying assets held for a lunar year. It applies to:
- Cash and savings held in bank accounts or at home
- Gold and silver (and by extension their current market value)
- Trade goods — stock held for business purposes, valued at market price
- Shares and certain investments, depending on the nature of the underlying assets
Some categories follow different rules and rates. Agricultural produce is calculated differently and on a separate schedule. Livestock has its own graduated scale. These are best worked out with a scholar who knows your specific situation.
Nisab: the threshold
Zakat is only due once your qualifying wealth reaches a minimum threshold called the nisab, and only if it has been held at that level for a full lunar year. The nisab is defined by the value of gold or silver, giving two commonly used standards:
| Standard | Weight | Practical note |
|---|---|---|
| Gold nisab | ~85 g gold | The higher threshold |
| Silver nisab | ~595 g silver | The lower threshold, more inclusive |
Where your wealth is a mix of cash, gold and other assets, many scholars advise using the silver nisab — the lower of the two thresholds — so that more people qualify to give. This is the more common guidance for those with mixed holdings.
Hawl: the lunar year
The second condition is the hawl — the holding period. Zakat becomes due on wealth that has remained at or above the nisab for one full lunar year, counted from the date your wealth first reached the threshold.
A practical approach many people use is to choose a fixed annual date — often Ramadan — and calculate zakat on that date each year. If your wealth is above the nisab on that date and was above it a year ago, zakat is due on what you hold now.
Calculate your zakat
Enter your savings, gold, trade goods and debts — the calculator shows your nisab, your zakatable total, and the amount due, entirely in your browser.
Open the zakat calculatorWhat is not counted
Your primary home, your personal vehicle and personal belongings in everyday use are generally not subject to zakat. These are treated as necessities, not accumulated wealth. A property you rent out for income is a different matter and may need to be counted.
Common questions
A few questions come up often:
- Gold jewellery in personal use: the schools differ. The Hanafi school holds that jewellery is zakatable whether worn or stored. The Maliki, Shafi’i and Hanbali schools exempt jewellery in regular personal use. There is a separate guide on this question.
- Money owed to you: debts you expect to be repaid are generally included in your zakatable wealth, as you are entitled to that money even if you do not yet have it.
- Debts you owe: the treatment of your own debts varies between scholars and schools. Some allow deduction from your zakatable total; this is worth confirming with a scholar.
Zakat is not charity. It is a right owed to others from your wealth.
Work out what you owe
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