Zakat is one of the Five Pillars of Islam — an obligatory annual payment that purifies your wealth and supports those in need. Every adult Muslim whose net wealth exceeds the Nisab threshold for a full lunar year (Hawl) must pay Zakat at a rate of 2.5%.
What is the Nisab?
The Nisab is the minimum amount of wealth a Muslim must hold before Zakat becomes obligatory. It is based on the value of 85 grams of gold or 595 grams of silver. This calculator fetches live spot prices automatically, so your Nisab threshold is always accurate — no manual updates needed. The gold standard is most commonly used today; the silver standard gives a lower threshold and is preferred by some scholars as it extends Zakat eligibility to more people.
Which Assets is Zakat Due On?
- Cash & Savings: All cash in hand, bank accounts and deposits held for over a lunar year.
- Gold & Silver: Gold and silver jewellery, coins or bullion held as wealth. (Scholars differ on jewellery in regular personal use.)
- Stocks & Investments: The zakatable portion of shares — typically the underlying liquid assets of the company.
- Business Assets: Trade inventory and liquid business assets intended for sale.
- Money Owed to You: Debts owed to you that you reasonably expect to be repaid.
- Rental Income: Net rental income earned over the year.
The Zakat Formula
Zakat = Net Zakatable Wealth × 2.5%. Your Net Zakatable Wealth is your total eligible assets minus short-term liabilities (debts and bills due within the year). If this amount is above the Nisab and has been held for a full lunar year, Zakat is due.
Frequently Asked Questions
Is Zakat on gold based on purchase price or current value?
Current market value. This calculator uses live gold spot prices, so the calculation always reflects today's value.
Do I pay Zakat on my home or car?
No. Your primary residence, personal vehicle, furniture and clothing are not subject to Zakat. Only wealth held for investment or trade is zakatable.
What is the Hawl (lunar year) condition?
Zakat is only due if your wealth has stayed above the Nisab for a complete Islamic lunar year. Most Muslims pick a fixed annual date — such as the start of Ramadan — to calculate and pay.
Can I pay Zakat in advance?
Yes. It is permissible to pay Zakat before the Hawl completes, especially during Ramadan when the reward for good deeds is multiplied.
Who are the eligible recipients of Zakat?
The Quran (9:60) names eight categories: the poor, the needy, Zakat administrators, those whose hearts are to be reconciled, those in bondage, the debt-ridden, those in the cause of Allah, and the stranded traveller.
Worked Example
If eligible assets total 1,000, and the selected gold Nisab is 11,000 and the estimated Zakat is $275 at 2.5%.
Result Interpretation
The result shows assets, liabilities, net wealth, the live Nisab threshold, and whether the threshold is met. The calculator does not determine the Hawl date or resolve differences between scholarly opinions.
Important Assumptions
Values are entered in the display currency, live metal prices are converted from troy ounces, and liabilities are limited to the amounts entered by the user.