Zakat Calculator — Free Online Zakat Obligation Estimator

How to Use the Zakat Calculator

1. Enter your cash and bank balances: Input the total amount of cash on hand and money held in all bank accounts including checking, savings, and money market accounts. Include any cash equivalents such as matured certificates of deposit. This represents the most liquid portion of your zakatable wealth and is always included in zakat calculations regardless of the school of thought you follow.
2. Add gold, silver, and investment values: Enter the current market value of any gold and silver you own, including jewelry (subject to scholarly opinion on personal-use exemptions). Add the current value of stocks, mutual funds, bonds, retirement investment balances, and any other financial instruments. Use today's market prices for the most accurate computation.
3. Include business assets and deduct debts: If you operate a business, enter the current value of inventory available for sale and any receivables owed to you. In the debts field, enter short-term liabilities and obligations you owe, such as upcoming bills, loans, and credit card balances. These debts are subtracted from your total before the zakat calculation.
4. Review your zakat obligation: The calculator determines whether your net zakatable wealth meets or exceeds the nisab threshold (the lower of gold nisab and silver nisab). If it does, your zakat is computed at 2.5% of total net zakatable assets. You can adjust the nisab gold and silver values to reflect current precious metal prices in your region.

All results update in real time as you modify any field. Consult a qualified Islamic scholar for specific rulings on which assets are zakatable according to your school of jurisprudence.

Zakat Formula and How It Works

Variables Explained

• Cash and Bank Balances: All liquid money including savings, checking, and money market accounts. This is the most straightforward zakatable category and is universally agreed upon by all schools of Islamic jurisprudence. Cash held in any currency is included at its current value.
• Gold and Silver: The market value of gold and silver you own, whether in the form of bullion, coins, or jewelry. The nisab for gold is based on the value of 87.48 grams (approximately 7.5 tola), and the nisab for silver is based on 612.36 grams (approximately 52.5 tola). These weights are derived from the prophetic tradition.
• Investments: Stocks, mutual funds, ETFs, bonds, and other financial instruments at their current market value. Some scholars also include the balance of retirement accounts such as 401(k) and IRA in this category. Consult a scholar regarding employer-matched portions and vesting schedules.
• Business Assets: Inventory held for sale at market value, plus accounts receivable. Fixed assets used in the business (such as machinery, office equipment, and real estate used for operations) are generally exempt from zakat.
• Debts: Short-term liabilities that reduce your net zakatable wealth. This includes bills due within the year, loan payments, and credit card debt. Long-term mortgage debt is treated differently by various scholars, with many allowing only the next 12 months of payments to be deducted.
• Nisab Threshold: The minimum wealth level above which zakat becomes obligatory. Our calculator uses the lower of the gold-based and silver-based nisab values, which is the majority scholarly opinion and ensures broader zakat coverage for community benefit.

Step-by-Step Example

Suppose Fatima wants to calculate her zakat. She has $8,000 in savings, gold jewelry worth $4,500, $15,000 in a stock portfolio, and $3,000 in credit card debt:

1. Calculate total gross assets: $8,000 + $4,500 + $0 (silver) + $15,000 + $0 (business) + $0 (other) = $27,500
2. Subtract debts: $27,500 - $3,000 = $24,500 net zakatable wealth
3. Compare to nisab: Gold nisab $6,800, Silver nisab $550. Nisab = min($6,800, $550) = $550
4. $24,500 >= $550 so zakat IS due
5. Calculate zakat: $24,500 x 2.5% = $612.50

Fatima owes $612.50 in zakat for this lunar year. She can pay this amount to any of the eight eligible recipient categories specified in the Quran (Surah At-Tawbah 9:60).

Practical Examples

Example 1: Ahmed's Comprehensive Zakat Calculation

Ahmed is a software engineer with diversified assets. He reviews his financial position at the end of the lunar year to calculate his zakat obligation:

• Cash and bank accounts: $12,000
• Gold (wife's jewelry, 150 grams at $80/gram): $12,000
• Silver coins (200 grams at $1/gram): $200
• Stock portfolio: $35,000
• No business assets or other assets
• Car loan remaining balance (this year's payments): $4,200
• Total net zakatable: $12,000 + $12,000 + $200 + $35,000 - $4,200 = $55,000
• Zakat due (2.5%): $55,000 x 0.025 = $1,375

Ahmed decides to spread his $1,375 zakat over the remaining months before his next hawl date, donating approximately $230 per month to a qualified zakat distribution organization. He keeps receipts for his tax records since his itemized deductions exceed the standard deduction.

Example 2: Khadija's Small Business Zakat

Khadija owns an online clothing boutique and needs to include her business inventory in her zakat calculation:

• Personal savings: $6,500
• Gold ring (10 grams): $800
• Business inventory (at retail value): $18,000
• Accounts receivable from customers: $2,400
• Supplier invoices due: $5,500
• Total net zakatable: $6,500 + $800 + $0 + $0 + $18,000 + $2,400 - $5,500 = $22,200
• Zakat due (2.5%): $22,200 x 0.025 = $555

Khadija owes $555 in zakat. She notes that the fixed assets of her business such as her computer, shipping supplies, and website hosting are not included in the zakat calculation because they are operational tools, not inventory held for sale.

Example 3: Omar's Below-Nisab Situation

Omar is a college student working part-time. He wants to know if he owes zakat:

• Checking account: $350
• Savings account: $120
• No gold, silver, or investments
• Student loan payments due this year: $200
• Total net zakatable: $350 + $120 - $200 = $270
• Nisab threshold (silver): $550
• $270 is below the nisab: No zakat obligation

Omar's net zakatable wealth of $270 falls below the silver nisab of $550, so he is not required to pay zakat this year. However, he can still give voluntary sadaqah at any amount. Once his wealth grows to meet or exceed the nisab for a full lunar year, he will become obligated to pay zakat.

Zakat Reference Table

Table assumes silver-based nisab (~$550). Nisab values fluctuate with precious metal prices. Consult a qualified Islamic scholar for personal rulings.

Tips and Complete Guide

Choosing Between Gold and Silver Nisab

The nisab can be calculated using either the gold standard (87.48 grams) or the silver standard (612.36 grams). Since silver is much cheaper than gold, the silver-based nisab is significantly lower, meaning more people qualify to pay zakat. The majority of contemporary scholars recommend using the silver nisab because it encompasses a wider base of potential zakat payers, thereby increasing the pool of funds available for eligible recipients. However, some scholars and organizations prefer the gold nisab, arguing it better represents meaningful wealth in the modern economy. Our calculator defaults to showing both values and uses the lower threshold, but you should follow the guidance of your local scholar or the organization through which you distribute your zakat.

Tracking Your Zakat Year (Hawl)

The hawl is the lunar year that must pass from the time your wealth first reaches the nisab until zakat becomes due. To determine your hawl date, note the first time your wealth reached or exceeded the nisab threshold and calculate one lunar year (approximately 354 days) forward. You can use our Hijri calendar converter to track dates in the Islamic calendar. Many Muslims simplify this by choosing a fixed date each year, often the first of Ramadan, as their annual zakat calculation date. If your wealth fluctuates during the year, you only need to meet the nisab at the beginning and end of the hawl period according to most scholars.

Zakat on Different Asset Types

Different asset types have nuanced zakat rulings. For stocks, you can either pay zakat on the current market value of your entire portfolio (simpler approach) or calculate the zakatable portion of each company's assets (more precise but complex). Real estate held as an investment for rental income is generally not subject to zakat on its value, but the rental income that accumulates in your accounts is zakatable. Cryptocurrencies are a newer category that most contemporary scholars treat as zakatable wealth if held for investment, valued at market price on your hawl date. Agricultural produce has different zakat rates (5% for irrigated crops, 10% for rain-fed crops) and is assessed at harvest time rather than the hawl cycle.

Common Mistakes to Avoid

• Forgetting to update nisab values: Gold and silver prices change daily. Using outdated nisab values could lead to under-paying or incorrectly concluding that you do not owe zakat. Check current precious metal prices on your zakat calculation date.
• Excluding certain asset categories: Some people forget to include investment accounts, business inventory, or receivables in their zakat calculation. All wealth held for growth or trade purposes should be included unless specifically exempted by scholarly consensus.
• Over-deducting debts: Only short-term debts and the upcoming year's payment obligations on long-term debts should be deducted. You should not subtract the entire remaining balance of a 30-year mortgage from your zakatable wealth, as this would drastically reduce or eliminate your zakat obligation.
• Confusing zakat with sadaqah: Zakat has specific rules about eligible recipients and cannot be given to direct family members (parents, children, spouse). Ensure your zakat reaches qualified recipients through a trusted organization or direct distribution to eligible individuals.
• Not maintaining a consistent calculation date: Switching your zakat calculation date arbitrarily can result in missed payments or double-counting. Establish a fixed annual date and stick to it every year for consistent and accurate zakat fulfillment.

Frequently Asked Questions