💰 Zakat Calculator

Zakat — The Third Pillar of Islam

Zakat (Arabic: زكاة) literally means purification and growth. It is the third pillar of Islam — an obligatory annual charity that purifies a believer's wealth and grows their reward with Allah. The Quran pairs zakat with prayer in more than 80 places, making it inseparable from a complete life of worship. The Prophet Muhammad ﷺ said: "Whoever pays the zakat on his wealth will have its evil removed from him."

Who Pays Zakat?

Every adult, sane, free Muslim whose net zakatable wealth has met or exceeded the nisab threshold and has remained at or above that level for one full lunar year (hawl) is obligated to pay 2.5% of that wealth as zakat. Children, the insane, and those in extreme need are exempt.

Understanding the Nisab

The nisab is the minimum amount of wealth a Muslim must possess for zakat to be obligatory. The Prophet ﷺ set two equivalent benchmarks: 87.48 grams of gold (20 mithqals) or 612.36 grams of silver (200 dirhams). Most contemporary scholars recommend using the silver standard because it benefits the poor — silver's lower threshold means more people qualify to pay, and thus more receive. Both values track current market prices.

Which Assets Are Zakatable?

• Cash: all currency held in any account, wallet, or hand.
• Gold and silver: bullion, coins, jewellery, silverware.
• Business merchandise: inventory and goods for resale, at current market value.
• Stocks & investments: their current market value; for trading shares, the full value; for held companies, the zakatable share.
• Receivables: debts owed to you that you reasonably expect to be paid.
• Crops & livestock: separate rates apply (5–10% on irrigated/rain-fed crops; specific tables for camels, cattle, sheep).

What Is Not Zakatable?

Your primary residence, your personal car, your everyday clothes, household furniture, and tools of your trade are not zakatable. These are considered essential needs (al-hawa'ij al-asliyya), not surplus wealth.

The Eight Categories of Recipients

Allah Himself names the eight categories of zakat recipients in Surah At-Tawbah (9:60): the poor (fuqara), the needy (masakin), zakat workers ('amilin), those whose hearts are to be reconciled (mu'allafati qulubuhum), for freeing captives (fir-riqab), the debt-burdened (gharimin), in the cause of Allah (fi sabilillah), and the stranded traveller (ibn as-sabil). You may give to any one or several of these categories.

Classical scholars stress that the recipient must be a Muslim with genuine need; giving zakat to non-Muslims or to one's own immediate dependants does not discharge the obligation, though general charity (sadaqah) to those groups is encouraged. Most contemporary scholars also allow zakat to be transferred internationally to where need is greatest, though some hold a preference for local distribution where the donor lives.

When and How to Pay

Zakat becomes due on the lunar anniversary (hawl) of the day your wealth first reached the nisab. Many Muslims choose a fixed Hijri date — often the first of Ramadan — as their annual zakat day, since the reward of voluntary acts of worship is multiplied during the blessed month. Our Ramadan guide explains why so many scholars consider this the most spiritually rewarding time to discharge the obligation.

Zakat may be paid directly to an eligible person you know, or channelled through a trusted Islamic charity that distributes on your behalf. If you choose a charity, verify that they distribute within the eight Quranic categories rather than using the funds for general operating expenses. Reputable organisations publish a clear zakat policy and often segregate zakat funds in a separate account.

Paying late

Zakat is a debt to Allah and to His servants. If you have missed previous years, the obligation does not lapse — you must calculate and pay for each past year based on the nisab and your wealth at that time. Sincere repentance and prompt payment are required; according to most scholars, no additional fine is owed for the delay.

Common Mistakes to Avoid

• Using only the gold nisab. The gold standard is so much higher than the silver standard that many wealthy Muslims escape zakat entirely. Most contemporary scholars therefore recommend the silver standard, since it benefits more poor people.
• Forgetting business inventory. Goods you hold for resale are zakatable at current market value, even if you have not sold them.
• Counting fixed assets. Your house, daily-use car, business premises and tools of trade are not zakatable — only the merchandise produced through them.
• Confusing zakat and tax. Zakat is an act of worship with specific recipients. Income tax paid to a secular government does not satisfy the zakat obligation.
• Confusing zakat and fidya. Zakat is annual wealth purification; fidya is a separate expiation for missed fasts. The two are paid independently.

Frequently Asked Questions

When should I pay my zakat?

Zakat becomes due on the lunar anniversary of the day your wealth first reached or exceeded the nisab. Many Muslims choose to pay during Ramadan because the reward of voluntary acts is multiplied — but you may not delay zakat past its due date without valid excuse.

Do I pay zakat on gold jewellery I wear?

The Hanafi school holds that all gold and silver — including worn jewellery — is zakatable. The Maliki, Shafi'i and Hanbali schools generally exempt jewellery in reasonable amounts for personal use, but tax excessive amounts or items kept as a store of wealth.

Can I give zakat to family members?

You may not give zakat to your parents, children, or spouse — supporting them is already obligatory upon you. You may give to other relatives in need (siblings, aunts, uncles, cousins), and in fact this is doubly rewarded as both charity and maintaining family ties.

What if my wealth dipped below nisab during the year?

If your wealth dropped below nisab at any point and then rose again, the hawl (lunar year count) restarts from the moment it once again reached the nisab. Some scholars, however, allow a continuous-year approach for ongoing business activity.

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