Zakat Calculator

About Zakat Calculator

How Is Zakat Calculated?

The core formula is straightforward:

Zakat = (Total Zakatable Assets - Eligible Deductions) x 2.5%

The key condition is that net zakatable wealth must meet or exceed the nisab threshold, and that wealth must have been held for one complete lunar year (called the hawl). If net wealth falls below the nisab at any point during the year, the clock resets.

Worked example: Suppose someone holds $12,000 in savings accounts, owns 50 grams of gold (at $155 per gram = $7,750), has $8,000 in stocks, $2,500 in cryptocurrency, and owes $3,000 in credit card debt due this year.

• Total assets = $12,000 + $7,750 + $8,000 + $2,500 = $30,250
• Deductions = $3,000
• Net zakatable wealth = $30,250 - $3,000 = $27,250
• Nisab (gold standard at $155/g) = 87.48 x $155 = $13,559
• $27,250 exceeds the nisab, so zakat is due
• Zakat = $27,250 x 0.025 = $681.25

That breaks down to about $56.77 per month or $1.87 per day. Many people find it helpful to see the daily figure because it puts the obligation in perspective - it is often less than a daily coffee.

A few details that trip people up in that example: the gold is valued at its weight in grams multiplied by the current spot price per gram, not what it was purchased for. The credit card debt is deductible because it is due within the next 12 months. If that person also had a $200,000 mortgage, only the next 12 months of repayments (say $12,000) would be deductible - not the full mortgage balance.

Second example (below nisab): Someone with $800 in savings, no gold, no investments, and $200 in credit card debt has a net zakatable wealth of $600. Under the silver standard (roughly $1,531), this falls below the nisab, so no zakat is due. Under the gold standard ($13,559), it would also fall short. This person would not be required to pay zakat but could still give voluntary sadaqah.

Which Assets Are Zakatable?

Not everything a person owns is subject to zakat. The general rule is that zakat applies to wealth that has the potential to grow or generate income. Personal-use items are exempt. Here is a breakdown based on guidelines from Islamic Relief and the Zakat Foundation of America:

Asset Type	Zakatable?	Notes
Cash in hand and bank accounts	Yes	All cash balances on the zakat date
Gold and silver	Yes	Jewellery, coins, and bars - valued at current spot price
Stocks and shares	Yes	Market value on the zakat date
Mutual funds and ETFs	Yes	Current redemption value
Business inventory	Yes	At wholesale/cost value, not retail
Cryptocurrency	Yes (majority view)	Treated like a tradable commodity
Money owed to you	Yes	Only if you reasonably expect repayment
Rental income (in account)	Yes	Cash from rent, not the property itself
Primary residence	No	Personal-use property is exempt
Personal car and furniture	No	Items of personal use are not zakatable
Tools of trade	No	Equipment used to earn a living is exempt
Retirement accounts (locked)	Varies	If you cannot access the funds, many scholars exempt them until withdrawal

For stocks specifically, the Islamic Finance Guru advises that if shares were bought for trading (to resell for profit), zakat is due on the full market value. If bought as a long-term investment for dividends, some scholars say zakat applies only to the dividend income received, not the share price itself. The more cautious approach - paying on the full value - is the safest position.

Gold jewellery: This is one of the most debated areas. The Hanafi school holds that zakat is due on all gold jewellery, even if worn regularly. The Shafi'i and Hanbali schools exempt gold jewellery that is worn in a normal, reasonable amount. If you own gold necklaces, rings, or bracelets, it is worth checking with a scholar from your school of thought. When in doubt, including it is the safer option.

Cryptocurrency: While crypto did not exist in classical Islamic jurisprudence, modern scholars from institutions including the American Muslim Community Foundation and Islamic Finance Guru have largely concluded that cryptocurrency is zakatable. It is treated similarly to a tradable commodity or currency. The value on the zakat calculation date is what counts, regardless of what it was purchased for.

Retirement accounts: Locked retirement accounts (like a 401(k) or workplace pension that cannot be accessed until retirement age) are treated differently by different scholars. Some say zakat is only due upon withdrawal. Others say it is due annually on the accessible portion. If your retirement account allows early withdrawal (even with penalties), the stricter view is that it is zakatable.

What Is the Nisab Threshold?

The nisab is the minimum wealth above which zakat becomes obligatory. It is defined by two precious metal standards set during the time of the Prophet Muhammad:

• Gold nisab: 87.48 grams of gold (approximately 2.81 troy ounces)
• Silver nisab: 612.36 grams of silver (approximately 19.7 troy ounces)

At April 2026 prices, gold trades at roughly $155 per gram, making the gold nisab approximately $13,559. Silver sits at around $2.50 per gram, putting the silver nisab at approximately $1,531. The gap between these two figures is significant, and it has widened dramatically over the centuries as gold prices have outpaced silver.

According to an Al Jazeera report from February 2026, rising gold prices in recent years have pushed the gold nisab higher than ever, creating a situation where someone with $10,000 in savings would owe zakat under the silver standard but not under the gold standard. The Hanafi school of thought generally recommends using the silver (lower) standard so that more Muslims fulfil their obligation and more charity reaches those in need. The Shafi'i, Maliki, and Hanbali schools tend to favour the gold standard.

This calculator lets you choose either standard and enter current spot prices yourself. Precious metal prices fluctuate daily, so always check a live price source like Kitco or GoldPrice.org on the day you calculate your zakat.

Here is how the two standards compare at April 2026 market prices:

Standard	Weight Required	Approx. Price per Gram	Nisab Value (April 2026)
Gold	87.48g (2.81 troy oz)	$155	$13,559
Silver	612.36g (19.7 troy oz)	$2.50	$1,531

The practical effect: someone with $5,000 in savings would owe nothing under the gold standard but would owe $125 in zakat under the silver standard. That is a significant difference, which is why the choice of standard matters.

Common Zakat Questions

Zakat vs. sadaqah: Zakat is the obligatory 2.5% payment - it is a pillar of Islam with specific rules about who pays, how much, and who receives it. The Quran lists eight categories of eligible recipients (Surah At-Tawbah, 9:60). Sadaqah is voluntary charity with no fixed amount, no minimum wealth requirement, and no restriction on recipients. It does not even need to be financial - a kind word or helping someone counts as sadaqah. Use the budget calculator to plan both obligatory and voluntary giving into your monthly finances.

Ramadan and zakat timing: While zakat can be paid at any time once the conditions are met, many Muslims choose to pay during Ramadan because good deeds carry greater reward during this month. This is perfectly valid, but the obligation is tied to your personal hawl (the date your wealth first exceeded the nisab), not to Ramadan specifically. If your hawl falls in March, your zakat is technically due in March.

Zakat on debt: If someone owes you money and you expect to receive it, that amount is zakatable. Money you owe others (debts due within the next 12 months) can be deducted. Long-term debts like a 25-year mortgage are not fully deductible - only the instalments falling within your zakat year count. This is a common point of confusion. For a complete picture of what you own vs. what you owe, try the net worth calculator.

Calculating 2.5% quickly: The percentage calculator can help with quick spot checks if you want to verify the maths. Multiply your net zakatable wealth by 0.025, or divide it by 40 - both give the same result.

Multiple currencies and overseas assets: If you hold wealth in different currencies or countries, convert everything to a single currency on your zakat date and calculate on the total. The obligation is on all qualifying wealth globally, not just what is in one country or account.

Who receives zakat? The Quran specifies eight categories of eligible recipients: the poor (al-fuqara), the needy (al-masakin), zakat administrators, those whose hearts are being reconciled, freeing those in bondage, those in debt, in the cause of God, and travellers in need. Most people pay their zakat through established Islamic charities and relief organisations that distribute funds to eligible recipients. Organisations like Islamic Relief, Zakat Foundation of America, and Muslim Aid handle distribution and ensure funds reach the correct categories.

Zakat al-Fitr vs. zakat al-mal: This calculator handles zakat al-mal (zakat on wealth), which is the annual 2.5% obligation. Zakat al-Fitr is a separate, smaller payment made at the end of Ramadan before Eid prayer. It is typically a fixed amount per person in the household (roughly the cost of one meal, often $10-$15 per person in the US). The two are distinct obligations and one does not replace the other.

Setting your zakat date: The hawl (lunar year) begins on the date your wealth first reaches the nisab. Many people use 1 Ramadan as a convenient fixed date, especially if they cannot remember the exact date their wealth first crossed the threshold. Pick one date and stick with it year after year for consistency. On that date, tally all zakatable assets, subtract deductions, check against the nisab, and pay 2.5% if eligible.

Common mistakes to avoid: Forgetting to include money in multiple bank accounts is the most frequent oversight. Other common errors include using the purchase price of gold instead of the current market price, forgetting about money owed to you (loans to friends or family), deducting long-term debt in full instead of just the next 12 months of payments, and not updating the gold or silver spot price on the actual calculation date.

Sources

• Islamic Relief - Zakat Calculator and Guidelines
• Zakat Foundation of America - Zakat Calculator
• Islamic Finance Guru - Zakat on Stocks and Shares
• Al Jazeera - How Higher Gold Prices Affect Zakat Calculations (Feb 2026)
• SAPA USA - Nisab Threshold for Gold and Silver