Zakat is an obligation on Muslims who hold wealth above a minimum level for a full lunar year. This guide explains the common method of calculating it in simple steps. It is general information, not a religious ruling. For your own situation, ask a qualified scholar.
The basic rule
Zakat is generally 2.5% of your zakatable wealth, provided that wealth has reached the nisab and you have held it for one lunar (Hijri) year.
What is the nisab?
The nisab is the minimum amount of wealth on which Zakat becomes due. It is usually measured either as the value of 7.5 tola (about 87.48 g) of gold or 52.5 tola (about 612.36 g) of silver. Because prices change, check the current gold or silver price on the day you calculate. Scholars differ on which measure to use, and many in Pakistan use the silver nisab because it is lower.
What counts as zakatable wealth
- Cash at home and in bank accounts.
- Gold and silver, including jewellery according to many scholars.
- Business stock held for sale, at its market value.
- Money owed to you that you expect to receive.
- Savings, investments and shares held for trading.
What is subtracted
Debts that are due now, such as unpaid bills, are generally deducted. Your home, personal vehicle and everyday items are not counted.
A worked example
| Item | Amount (PKR) |
|---|---|
| Cash and bank balance | 600,000 |
| Gold held (market value) | 400,000 |
| Money owed to you | 100,000 |
| Debts due now | −150,000 |
| Net zakatable wealth | 950,000 |
| Zakat at 2.5% | 23,750 |
The figures are only an example. If your net wealth is below the nisab, no Zakat is due.
Choosing your Zakat date
Many people choose a fixed date each year, often in Ramadan. The Hijri Date Converter helps you find the matching Islamic date. Note also that in Pakistan, the government deducts Zakat from some bank accounts on the first of Ramadan, and people who deduct their own Zakat can submit a declaration of exemption. Keep track of what was already deducted so you do not pay twice.
Do the sum with the calculator
Enter your cash, gold, silver, business stock and debts into the free Zakat Calculator and it will work out the total and the 2.5% for you. It runs in your browser, so your figures are not uploaded anywhere.