How to Calculate Zakat — Complete Guide 2026
Zakat is one of the Five Pillars of Islam and is obligatory on every Muslim who owns wealth above the Nisab threshold for a full lunar year. This guide explains exactly how to calculate your Zakat correctly.
What Is Nisab?
Nisab is the minimum amount of wealth a Muslim must own before Zakat becomes obligatory. There are two Nisab thresholds:
- Gold Nisab: 7.5 Tolas = 87.48 grams of gold
- Silver Nisab: 52.5 Tolas = 612.36 grams of silver
Nisab Thresholds 2026
Note: These values are approximate based on current market rates. Always verify with your local Islamic scholar.
What Assets Are Subject to Zakat?
Zakat is payable on the following types of wealth:
- Cash — Money in hand and in bank accounts
- Gold and silver — Jewelry, coins, and bars (at current market value)
- Savings and investments — Fixed deposits, stocks, mutual funds
- Business inventory — Stock and goods held for trade
- Money owed to you — Debts others owe you that are likely to be recovered
What Can Be Deducted?
Before calculating Zakat, you may deduct the following liabilities:
- Immediate debts you owe to others
- Unpaid bills and rent due
- Short-term loans you must repay
How to Calculate Zakat Step by Step
Step 1 — Add up all your zakatable assets (cash, gold value, savings, business stock)
Step 2 — Subtract your immediate liabilities (debts, unpaid bills)
Step 3 — Check if the remaining net wealth meets or exceeds the Nisab threshold
Step 4 — Confirm that you have owned this wealth for one full lunar year (Hawl)
Step 5 — If all conditions are met, pay 2.5% of your total net wealth as Zakat
Calculation Example
The Condition of Hawl (One Lunar Year)
Zakat only becomes due if you have owned the wealth for a complete lunar year (approximately 354 days). If your wealth dropped below Nisab at any point during the year, the Hawl resets.
Many people find it easiest to calculate their Zakat on the same date each year — such as the beginning of Ramadan — to keep track of the Hawl consistently.
Zakat on Gold Jewelry
There is a difference of opinion among scholars on whether gold jewelry used for personal wear is subject to Zakat. The majority Hanafi position is that it is, while other scholars hold that jewelry in regular use is exempt. Consult your local scholar for a ruling that applies to your situation.
Use Our Free Zakat Calculator
Our free Zakat Calculator supports all major world currencies, lets you choose between Gold and Silver Nisab, and allows you to enter your assets and liabilities separately for an accurate result. It uses updated 2026 Nisab values.
Frequently Asked Questions
Is Zakat due on a business property or building? No. Fixed assets used in the business such as machinery, vehicles, and buildings are not subject to Zakat. Only trading stock and liquid assets are zakatable.
What if I am unsure about my Nisab currency equivalent? Use our Zakat Calculator which automatically converts Nisab to your selected currency based on current rates.
Can I pay Zakat in installments? Yes. You may spread your Zakat payments throughout the year as long as the full amount is paid by the end of the lunar year.
Who is eligible to receive Zakat? The eight categories mentioned in the Quran (Surah At-Tawbah 9:60) include the poor, the needy, those in debt, travelers in need, and others. Local Islamic charities and scholars can help direct your Zakat to the right recipients.
Calculate your Zakat accurately using our free Zakat Calculator 2026.