How to calculate Zakat on gold and savings
Zakat is calculated on net zakatable wealth held for a full lunar year, once that wealth exceeds a minimum threshold called the nisab.
What typically counts
- Cash in hand and bank accounts
- Gold and silver
- Business inventory and money owed to you that you expect to receive
What is subtracted
Immediate debts and liabilities are deducted first to reach your net zakatable wealth.
The threshold and rate
Zakat applies once net wealth exceeds the nisab (based on the value of a set weight of gold or silver), at a rate of 2.5% of that net wealth.
Using the calculator
Enter your assets and debts into the Zakat Calculator for an estimate. For guidance on specific or unusual assets, a qualified scholar is the right source — the calculator follows a common mainstream approach but scholarly opinion varies on some details.
Tracking Zakat across the year
Since Zakat applies to wealth held for a full lunar year, keeping a simple note of your zakatable assets at the point your Zakat year begins makes the annual calculation far easier than trying to reconstruct account balances from a year ago.
For combined income and giving planning
Many people calculate both their income tax (with the Tax Calculator) and Zakat obligation together as part of annual financial planning, since both are calculated from overlapping financial information.
Assets that commonly cause confusion
Personal use items like jewellery worn regularly, a primary residence, and vehicles used personally are generally treated differently from zakatable wealth held for growth or trade — if your situation includes assets you are unsure how to categorise, that is exactly the kind of specific question worth taking to a qualified scholar rather than guessing.
