What is Zakat? Free Zakat Calculator 2025
Learn what is Zakat and what is Nisab with our free Islamic charity calculator and educational quiz. Calculate your Zakat obligation accurately using current nisab threshold 2025
Select Your Currency
Quick Summary
Detailed Zakat Calculation
Assets Breakdown
Liabilities
Total Assets:
$0.00
Total Liabilities:
$0.00
Net Zakatable Wealth:
$0.00
Nisab Threshold: $0.00
Enter your assets to calculate Zakat.
Next Steps for Zakat Payment
- Verify your calculation is correct
- Ensure you've owned this wealth for one lunar year
- Pay to eligible recipients (8 categories mentioned in Quran)
- Keep records of your Zakat payments
- Recalculate annually
What is Zakat? Complete Islamic Charity Guide
Zakat (زكاة) is one of the Five Pillars of Islam and is an obligatory form of charity or almsgiving for all Muslims who meet the necessary criteria of wealth. It's a fixed percentage (2.5%) of a Muslim's total savings and wealth that is paid to the poor and needy.
The Quran emphasizes the importance of Zakat in numerous verses:
"وَأَقِيمُوا الصَّلَاةَ وَآتُوا الزَّكَاةَ وَارْكَعُوا مَعَ الرَّاكِعِينَ"
"And establish prayer and give Zakat, and bow with those who bow [in worship and obedience]." (Quran 2:43)
Benefits of Paying Zakat
Paying Zakat offers numerous spiritual, social, and personal benefits:
- Spiritual Purification: Cleanses wealth and soul from greed and selfishness
- Social Justice: Reduces poverty and economic disparity in the community
- Economic Circulation: Ensures wealth circulates throughout society
- Divine Blessings: Brings barakah (blessings) to one's remaining wealth
- Community Solidarity: Strengthens bonds between different socioeconomic classes
- Personal Discipline: Encourages financial awareness and responsibility
Historical Significance
Zakat has been an integral part of Islamic practice since the time of Prophet Muhammad (PBUH). It was institutionalized in Medina and became one of the fundamental practices of the Muslim community.
Nisab Threshold
The minimum amount of wealth one must have before Zakat becomes obligatory is called nisab, which is equivalent to either 87.48 grams of gold or 612.36 grams of silver.
Zakat Distribution
The Quran specifies eight categories of people eligible to receive Zakat: the poor, the needy, those employed to administer Zakat, those whose hearts are to be reconciled, those in bondage, the debt-ridden, in the cause of Allah, and the wayfarer.
How to Use This Zakat Calculator
Our digital Zakat calculator makes it easy to determine your Zakat obligation accurately:
Select Currency
Choose your local currency from the dropdown menu
Enter Metal Prices
Input current gold and silver prices per gram in your currency
Input Assets & Debts
Enter all your zakatable assets and deductible liabilities
Calculate
Let the calculator determine if you owe Zakat and how much
View Results
See detailed breakdown of your calculation and next steps
Pay Zakat
Distribute your Zakat to eligible recipients according to Islamic guidelines
Zakatable Assets
| Asset Type | Zakatable? | Calculation Method | Notes |
|---|---|---|---|
| Cash & Bank Balances | Full value | All currencies, checking/savings accounts | |
| Gold & Silver | Market value | Jewelry, bullion, coins intended as savings | |
| Stocks & Investments | Market value | Value of shares minus any loans against them | |
| Business Inventory | Wholesale value | Goods held for sale, not including fixed assets | |
| Real Estate Investments | Market value minus mortgages | Only investment properties, not primary residence | |
| Retirement Accounts | Varies by scholar | Consult with a knowledgeable Islamic scholar | |
| Primary Residence | Not applicable | Personal use property is exempt | |
| Personal Vehicles | Not applicable | For personal use, not for business |
Zakat Knowledge Quiz
Test your understanding of Zakat calculations with practical scenarios
Ready to Test Your Zakat Knowledge?
This quiz covers practical scenarios involving Zakat calculations with loans and savings. You'll learn through real examples featuring Ahmed and Fatima's financial situations.
Frequently Asked Questions About Zakat
To use this calculator effectively:
- First, select your currency from the dropdown menu
- Enter current gold and silver prices per gram in your selected currency
- Fill in all your assets (cash, savings, gold, silver, investments, etc.)
- Enter any short-term debts or liabilities
- Review the calculated Zakat amount
- Click "View Detailed Results" for a breakdown of your calculation
Remember that Zakat is only obligatory if your wealth exceeds the nisab threshold and has been in your possession for one lunar year.
The nisab threshold (minimum amount for Zakat eligibility) is based on the value of either 87.48 grams of gold or 612.36 grams of silver. By entering current prices, the calculator can determine the accurate nisab value in your local currency.
Most scholars recommend using the silver standard as it results in a lower nisab threshold, making more wealth Zakat-eligible and thus increasing charity to those in need.
If you don't know current prices, you can quickly search online for "gold price per gram [your currency]" or "silver price per gram [your currency]".
Nisab is the minimum amount of wealth a Muslim must possess before they are obliged to pay Zakat. It is equivalent to:
- 87.48 grams of gold, OR
- 612.36 grams of silver
Most contemporary scholars recommend using the silver standard as it results in a lower threshold, meaning more people qualify to pay Zakat and more funds are distributed to those in need.
If your net assets (after deducting debts) are below the nisab threshold, you are not obligated to pay Zakat. If your assets meet or exceed the nisab threshold, you must pay 2.5% of your total zakatable wealth.
Zakat is payable on the following types of assets:
- Cash (at home or in bank accounts)
- Gold and silver (whether jewelry, bullion, or coins)
- Investments (stocks, bonds, mutual funds)
- Business assets and inventory
- Accounts receivable
- Real estate investments (not including primary residence)
- Retirement accounts (according to some scholars)
Your primary residence, personal vehicles, and personal belongings are generally not included in Zakat calculation.
Zakat should be calculated and paid once every lunar year (approximately 354 days). Many Muslims prefer to pay their Zakat during Ramadan for the increased blessings, but it can be paid at any time once the lunar year has passed.
It's recommended to:
- Set a specific date each year for your Zakat calculation
- Keep records of your previous Zakat payments
- Recalculate each year as your financial situation may change
- Use this calculator annually to determine your obligation
Yes, according to most scholars, you can deduct outstanding debts from your zakatable wealth. However, there are some conditions:
- Short-term debts (due within one year) are generally deductible
- Long-term debts may be deductible according to some scholars
- Debts for essential living expenses are deductible
- Debts for non-essential items may not be deductible according to some interpretations
Our calculator allows you to enter both short-term and long-term debts to provide a comprehensive calculation. If in doubt, consult with a knowledgeable Islamic scholar for your specific situation.
Zakat is not calculated on income but on wealth. Specifically, it's calculated on your net assets (what you own minus what you owe) that have been in your possession for at least one lunar year and exceed the nisab threshold.
Key points:
- Zakat is 2.5% of your total zakatable wealth, not income
- Only assets that have been held for a full lunar year are zakatable
- New income or assets acquired during the year are not zakatable until a full year has passed
- You should calculate all zakatable assets at their current market value
The Quran specifies eight categories of people who are eligible to receive Zakat (Surah At-Tawbah, 9:60):
- The poor (those who don't have enough to meet basic needs)
- The needy (those who are struggling but may not be utterly destitute)
- Those employed to administer Zakat funds
- Those whose hearts are to be reconciled (new Muslims and those sympathetic to Islam)
- Those in bondage (slaves and captives)
- Those in debt (who took debt for lawful needs)
- In the cause of Allah (various Islamic works)
- The wayfarer (travelers who are stranded and in need)
It is important to ensure your Zakat is distributed to eligible recipients according to Islamic guidelines.