How to calculate zakat
Zakat is the third pillar of Islam: 2.5% of the wealth that has stayed above a minimum amount (nisab) for a full lunar year. Here is how to work out yours.
خُذۡ مِنۡ أَمۡوَٰلِهِمۡ صَدَقَةٗ تُطَهِّرُهُمۡ وَتُزَكِّيهِم بِهَا وَصَلِّ عَلَيۡهِمۡۖ إِنَّ صَلَوٰتَكَ سَكَنٞ لَّهُمۡۗ وَٱللَّهُ سَمِيعٌ عَلِيمٌ ﴿١٠٣﴾
Khuth min amwalihim sadaqatan tutahhiruhum watuzakkeehim biha wasalli ʿalayhim inna salataka sakanun lahum waAllahu sameeʿun ʿaleemun
Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah 's blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing
Quran 9:103 · Surah At-Tauba · Translation: Saheeh International · Transliteration: Tanzil.net
Islam is built on five: testifying that there is no god but Allah and that Muhammad is the Messenger of Allah, establishing the prayer, giving zakat, the Hajj, and fasting Ramadan.
Sahih al-Bukhari and Sahih Muslim
The conditions
- Nisab: your zakatable wealth reaches the value of 85 g of gold or 595 g of silver. Many councils use the silver nisab, which is lower and benefits more poor people; others use gold. Look up the current price on your zakat day.
- Hawl: it has stayed above the nisab for a full lunar year (354 days).
- Full ownership: the wealth is yours and freely available.
What counts
- Cash, bank and savings accounts
- Gold and silver (scholars differ on jewellery that is worn: zakatable in the Hanafi school, not in the others)
- Shares and funds: their market value, or for long-term investments the zakatable share of the company's assets
- Business goods at their current value
- Money owed to you that you expect to get back
Not counted: your home, car, furniture and clothes for personal use. Debts due now can be deducted.
A worked example
Suppose gold costs 100 per gram, so the nisab is 85 × 100 = 8,500. You have 12,000 in savings, gold worth 2,000 and 1,000 in debts due now: 12,000 + 2,000 − 1,000 = 13,000, above the nisab. Zakat is 2.5% of it: 325.
Many people choose a fixed date, for example in Ramadan, and calculate everything on that day each year.
Who receives zakat?
۞إِنَّمَا ٱلصَّدَقَٰتُ لِلۡفُقَرَآءِ وَٱلۡمَسَٰكِينِ وَٱلۡعَٰمِلِينَ عَلَيۡهَا وَٱلۡمُؤَلَّفَةِ قُلُوبُهُمۡ وَفِي ٱلرِّقَابِ وَٱلۡغَٰرِمِينَ وَفِي سَبِيلِ ٱللَّهِ وَٱبۡنِ ٱلسَّبِيلِۖ فَرِيضَةٗ مِّنَ ٱللَّهِۗ وَٱللَّهُ عَلِيمٌ حَكِيمٞ ﴿٦٠﴾
Innama alssadaqatu lilfuqarai waalmasakeeni waalʿamileena ʿalayha waalmuallafati quloobuhum wafee alrriqabi waalgharimeena wafee sabeeli Allahi waibni alssabeeli fareedatan mina Allahi waAllahu ʿaleemun hakeemun
Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler - an obligation [imposed] by Allah. And Allah is Knowing and Wise
Quran 9:60 · Surah At-Tauba · Translation: Saheeh International · Transliteration: Tanzil.net
The poor and needy come first. Zakat cannot be given to your own parents, children or spouse, as you already provide for them.
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Frequently asked questions
Is zakat due on my pension savings?
Contemporary scholars differ. Many say zakat is due on the part you can access now, others only once it is paid out. If in doubt, ask a scholar in your country.
Can I pay zakat in instalments during the year?
Yes. You may pay zakat in advance, spread over the year, as long as the full amount is paid by your zakat date.
This article was written with the help of AI. Quran verses are inserted directly from the Quran text (translation: Saheeh International); it is general information, not a religious ruling (fatwa). For your own situation, ask a qualified scholar. Found a mistake? Write to support@hadaff.de.