How to calculate zakat on money, savings and gold
The nisab, the 2.5 % rate, the lunar-year rule and what counts as zakatable wealth, explained step by step with the calculators.
· Awaiting human editorial review
The three ideas behind the calculation
Zakat on money and precious metals rests on three ideas. First, you own enough: your wealth has reached the nisab, a minimum threshold. Second, you have held it for a full lunar year. Third, the rate is one fortieth, which is 2.5 % of the zakatable amount.
If your wealth falls below the nisab on the date you calculate, no zakat is due. If it is at or above it, 2.5 % applies to the whole zakatable amount, not only to the part above the threshold.
The nisab: gold or silver
The nisab is measured in precious metal: 85 grams of pure gold or 595 grams of silver. To turn it into money, multiply the grams by today’s price per gram in your currency. Because silver is much cheaper than gold, the silver nisab is far lower, so more people owe zakat when it is used.
Scholars differ on which to follow for cash. Many use gold; others prefer silver because it benefits the poor. Neither choice is wrong, so follow the opinion you rely on and keep it consistent from year to year. The Zakat on Money Calculator lets you switch between the two.
What counts as zakatable wealth
Add cash in hand, balances in bank accounts, the market value of goods held for trade, and money owed to you that you expect to collect. Then subtract debts that are due now. What remains is compared with the nisab.
Items for personal use, such as your home, car, furniture and clothes, are not zakatable. Jewellery and bullion are assessed by weight and purity: 24 karat is pure, 21 karat is 21/24 pure, so 100 grams of 21 karat gold counts as 87.5 grams of pure gold. The Zakat on Gold and Silver Calculator does this conversion for you.
A worked example and a note of caution
Suppose you hold 20,000 in savings, owe no debts that are due, and gold costs 70 per gram. The gold nisab is 85 × 70 = 5,950. Your savings are above it, so zakat is 2.5 % of 20,000, which is 500. With savings of 5,000 the same person would owe nothing.
These tools are for education and estimation. Questions such as whether worn jewellery is zakatable, how to treat investments and pensions, or when your lunar year starts depend on the opinion you follow. Ask a qualified scholar about your own situation.